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How Corn Growers Could Benefit From 45Z

How Corn Growers Could Benefit From 45Z
Jul 14, 2026
By Farms.com

New regenerative biofuel framework could reward low carbon farming

Corn growers may soon have a new opportunity to increase the value of their crops through emerging low-carbon fuel markets. 

The U.S. Department of Agriculture (USDA) has finalized a voluntary framework designed to measure and verify how regenerative farming practices affect the carbon intensity of major commodity crops. The program applies to corn, soybeans, sorghum, and spring canola that are used in biofuel production. 

Alongside the rule, USDA introduced the Feedstock Carbon Intensity Calculator. The tool allows farmers to enter field-level information and calculate greenhouse gas emissions associated with crop production. Data related to tillage practices, nutrient management, and cover crops can be used to generate a carbon intensity score. 

These scores may help farmers market grain to biofuel producers seeking lower-carbon feedstocks. As demand grows sustainable fuel production, crops with lower carbon intensity could become more valuable. 

Participation in the program is voluntary. Farmers interested in joining will need to maintain detailed production records, submit data through the calculator, and undergo third-party verification. The framework also requires grain to be physically tracked through the supply chain to ethanol facilities under a mass balance system. 

Industry groups continue to support improvements that would provide greater flexibility for farmers. Some organizations are advocating alternatives that would allow environmental benefits to be marketed separately from physical grain deliveries. 

The rule is also connected to the federal 45Z Clean Fuel Production Tax Credit. Policymakers are reviewing ways low-carbon farming practices could be reflected within the credit program, creating additional opportunities for agricultural producers. 

Growers are encouraged to stay informed, participate in industry organizations, and follow policy developments as government agencies continue refining clean fuel programs. 

Photo Crediit: gettyimages-dszc


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