By Jamie Martin
The American Soybean Association (ASA) has called on government agencies to speed up the release of final guidance for the Section 45Z Clean Fuel Production Credit. The request comes as uncertainty continues to affect soybean farmers and the broader biofuel industry.
According to ASA, unclear tax rules are making it difficult for businesses across the supply chain to make decisions. Farmers, processors, and fuel producers depend on stable policies to plan. Without clear guidance, growth in the biofuels sector may slow down.
Soybean oil is a key input in renewable fuel production. It accounts for more than one-third of the materials used in biodiesel and renewable diesel. This makes the 45Z credit an important tool for maintaining demand and supporting farm incomes.
The association also recognized recent positive changes in the program. The removal of indirect land use change penalties has helped level the playing field for U.S. agricultural products. This change is expected to improve the competitiveness of soy-based feedstocks.
ASA further supported provisions that prioritize feedstock produced in North America. This focus can strengthen domestic agriculture and promote regional economic growth. In addition, the group encouraged agencies to include recognition of conservation practices in future guidance.
Tools from the USDA that measure carbon intensity could help farmers benefit from sustainable farming methods.
In its comments, ASA stressed the importance of acting quickly. The group noted that “final guidance is needed to provide clarity and confidence across the biofuels value chain.” Clear policies will help ensure continued investment, support farmers, and drive long-term growth in renewable energy markets.
Photo Credit: istock-urpspoteko
Categories: National