By Jamie Martin
Farmers using regenerative agriculture practices may have new opportunities to benefit financially from lower-carbon biofuel production under the federal 45Z Clean Fuel Production Tax Credit.
John Deere is focusing on farm data management and digital documentation to help growers prepare for potential participation as program requirements develop.
The tax credit allows qualifying biofuel producers, including ethanol and biodiesel plants, to pursue credits for producing fuels using eligible lower-carbon feedstocks. These may include corn, soybeans, sorghum, and spring canola.
Agricultural practices such as reduced tillage, no-till planting, cover crops, and nutrient management can contribute to lower feedstock carbon intensity. Eligible biofuel production dates range from January 1, 2025, through December 31, 2029.
Participation is voluntary for farmers, and growers already following qualifying practices may be able to demonstrate reductions using existing records. However, the amount of compensation farmers receive will depend on arrangements with individual biofuel producers and their grower programs.
"John Deere has long advocated for practical implementation of 45Z policies that recognize farmers’ contributions and help connect revenue generated downstream back to the farm gate. If farmers are creating value through their practices, they should share in that value," said Nate Green, Director of Biofuels, John Deere.
"We’re committed to providing the equipment, technology, and data solutions that will help farmers share in the income created through 45Z," Green added.
Reliable documentation will be important for demonstrating the environmental benefits of farming practices. John Deere Operations Center™ helps producers organize equipment and field-operation data, perform quality checks, and review information about their work.
The company is developing additional capabilities to automate data validation, limit repetitive data entry, and improve the accuracy of farm records.
These improvements are intended to support a Biofuel Feedstock Report (BFR), which records carbon intensity reductions at the field level. Biofuel producers use this report when seeking additional 45Z credits.
John Deere plans to test the process with a small group of ethanol producers committed to sharing program value with farmers, coordinating with their feedstock suppliers to gather the necessary information.
Growers can take practical steps now by collecting planting, harvest, fertilizer application, and field-operation records in a centralized location.
Checking planting dates, field boundaries, fertilizer rates, product details, invoices, and receipts can help identify missing or inaccurate information before reporting begins.
As digital farm records become more valuable, protecting farmers' rights over their information remains important. John Deere's Farmer Data Commitment emphasizes transparency, choice, and control, helping growers understand how their information may be used to support participation in the 45Z program and related opportunities.
Photo Credit: john-deere
Categories: National