Farm group pushes faster guidance to support soy biofuel growth
The American Soybean Association (ASA) has asked federal agencies to quickly release final tax guidance for the Section 45Z Clean Fuel Production Credit. The request highlights growing concerns among soybean farmers and biofuel producers facing uncertainty in the market.
ASA stated that the delay in finalizing rules is creating confusion across the supply chain. Farmers, processors, and fuel producers are finding it difficult to plan investments and production decisions without clear policies. The group emphasized that the 45Z credit plays an important role in supporting long-term demand for U.S. soybeans.
Soy-based biofuels remain a major part of the renewable energy sector. Soybean oil currently makes up more than one-third of the feedstock used in biodiesel and renewable diesel production. Because of this, any uncertainty in policy directly impacts farm income and industry growth.
ASA also supported recent improvements made to the credit program. One major update was the removal of indirect land use to change penalties.
These penalties had previously placed U.S. agricultural products at a disadvantage compared to other feedstocks. Their removal is expected to improve the competitiveness of domestic soybeans.
In addition, ASA backed efforts to prioritize North American feedstocks. This approach can help strengthen local agriculture and reduce dependence on imported materials. The group also encouraged further guidance that recognizes conservation practices.
Using tools developed by the USDA to measure carbon intensity could open new market opportunities for farmers who adopt sustainable practices.
ASA concluded by urging the Department of the Treasury and the Internal Revenue Service to act quickly. Clear and final guidance, the group said, will provide stability, support the biofuels value chain, and help ensure continued growth in soy-based renewable energy.
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