Greg Messer (right) with his family at Messer Beaver Creek Ranch. (Messer Beaver Creek Ranch photo)
As spring planting wraps up, American corn farmers like me made tough decisions that impact our operations and ripple through the U.S. economy. What to plant, how to plant, and whether to take a new risk. The choices we make depend, above all else, on certainty.
In an encouraging sign, the House recently passed legislation allowing for nationwide, year-round E15 sales, a step toward growing demand.
But certainty is hard to come by in other areas. Diesel and fertilizer costs remain sky high, and I continue to receive a low return on the dollars invested in producing my crops. When you’re getting squeezed from both ends, you want federal policy to support markets that reward the work we’re putting into our fields.
Among the policy solutions the federal government can advance now is ensuring the final Section 45Z Clean Fuel Production Credit rule recognizes and accounts for the benefits of agriculture production practices to add value to our crops used as biofuel feedstocks.
Getting 45Z right would provide much-needed clarity, enabling farmers to plan ahead and calculate risks. The U.S. Departments of Treasury, Energy, and Agriculture must ensure that the final credit counts and values the contributions of farmers who use modern regenerative and conservation practices in our fields.
Accounting for these practices allows farmers to earn premiums from biofuel producers for the value our on-farm practices add to our crops, while helping biofuel producers recognize and reward feedstocks that make their fuels more competitive.
On my farm, practices like reduced or no-till, cover crops, and enhanced fertilizer management improve my farm’s soil health and resilience, reduce my input costs and increase yields. All in all, these practices make mine and my neighbors’ operations stronger for the long haul.
Farmers need to know which practices will be included, and what reporting and recordkeeping will be required, so that the crops we plant provide the greatest value when harvested and sold as biofuel feedstocks.
Last year, the USDA released draft biofuel feedstock guidelines and a beta version of a user-friendly on-farm calculator. These tools would provide a flexible and efficient approach to recordkeeping and verification for ag production practices that start with farmers and extend through the biofuel supply chain.
USDA recently sent its final biofuel feedstocks guidelines to the White House for review. That’s one encouraging step, but now it’s time for the lead federal agencies to work together and leverage USDA’s expertise to complete the process of integrating these tools in 45Z, as Treasury committed to do earlier this year.
Not only do agricultural production practices matter for biofuels produced today, but on-farm practices are especially critical as we look to the next frontier of biofuels: sustainable aviation fuels. SAF represents one of the most promising opportunities to advance aviation and energy security while creating new markets for American crops and biorefinery manufacturing.
American innovators are at the ready to turn this promise into opportunity for America’s farmers, but we need federal policy to align with this momentum. Partnering with farmers and adding value to their crops through new biofuel markets is a key part of the business system for biofuel producers such as Gevo North Dakota and others.
By accounting for ag practices through 45Z, fuel producers can compensate farmers for sustainable ethanol feedstocks today while investing in commercial-scale production of SAF for tomorrow, unleashing the full promise of a new generation of American-grown crops. This investment will directly benefit American farming communities, like mine in North Dakota, as our products meet growing demand and create new market opportunities. Farmers will be better positioned to compete in more markets, including internationally.
The United States can lead the world in innovation and in recognizing and rewarding the benefits farmers and modern agriculture bring to U.S. biofuels and energy production, including SAF. Done right and when fully implemented, these efforts will support new jobs, strengthen our nation’s energy security and expand markets for farmers right here at home.
We’re ready to fuel the future. We just need the certainty.
Greg Messer operates Messer Beaver Creek Ranch, a multigenerational, family-run ranching and livestock operation rooted in southwestern North Dakota.