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New voluntary carbon market programs are recognizing decades-old soil health practices implemented by farmers. These practices, which have been in use for years, could now make farmers eligible for carbon credits. Alan Weber, from the University of Missouri’s Center for Regenerative Agriculture, believes that using low-carbon intensity feedstocks for biofuels could change the situation for these farmers.
The Inflation Reduction Act has created two new tax credits for biofuel producers: the Sustainable Aviation Fuel tax credit and the Clean Fuel Production Credit, which will be available in 2025. However, the U.S. Department of Treasury is still finalizing guidance on how these programs will be implemented.
There are still many questions surrounding how these tax credits will be shared with farmers, but it is recommended that corn and soybean farmers keep a close eye on the developments. Weber emphasizes the importance of recognizing and rewarding farmers who have been practicing soil health for many years through these new tax credits. The updated Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation model, which is used to measure carbon emissions, could provide additional incentives for farmers to continue implementing beneficial practices for both their operations and the environment.
Weber was interviewed at the Missouri Soybean’s Cover Crop Field Day last week and highlighted how these new tax credits could potentially benefit soil health practices that have been overlooked in the past. He recommends that farmers continue to focus on implementing sustainable farming practices that not only benefit their operations but also contribute to reducing carbon emissions and mitigating climate change.
In summary, decades-old soil health practices are finally getting recognition in new voluntary carbon market programs. The Inflation Reduction Act has created two new tax credits for biofuel producers that could potentially benefit farmers who have been practicing soil health for many years. Weber emphasizes the importance of recognizing and rewarding these farmers through these new tax credits while continuing to focus on implementing sustainable farming practices that contribute to reducing carbon emissions and mitigating climate change.
