A new interim final rule announced yesterday (Wednesday) by the U.S. Department of Agriculture (USDA) could open the door for soybean farmers to capitalize on climate-smart agriculture (CSA) practices, unlocking incentives tied to biofuel production and environmental stewardship. The rule, issued under the 45Z clean transportation fuel program, outlines technical guidelines for measuring carbon reductions from CSA practices. If finalized, it would expand the range of qualifying practices, allowing farmers to adopt additional techniques such as reduced tillage and split fertilizer applications alongside existing options like no-till and cover crops. Iowa Soybean Association President Brent Swart says, “[The] interim final rule released by USDA could move the needle on farmers’ ability to participate in the booming renewable fuels space, all while helping to reduce emissions and unlock new profit opportunities for the crops we produce. If realized by the incoming administration, the rule would provide a broader range of qualifying CSA practices—providing farmers with greater flexibility to make on-farm decisions that best fit their operation’s unique needs.” Sen. Chuck Grassley pressed the Treasury Department for more clarification on the 45Z rule last week, which led to the USDA’s updated guidance, which will help farmers better measure carbon reductions. USDA will begin accepting public comments on the rule tomorrow (Friday).
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