Trump Issues Regenerative Agriculture Order; USDA Launches Feedstock Rule to Unlock Biofuel Market Gains

Agriculture (USDA)Energy (DOE)Federal Agency/Executive BranchFederal RegulationFeedstocksField/Orchard/Plantation Crops/ResiduesHealth and Human Services (HHS)OpinionsPolicySustainabilityTreasury DepartmentWhite House
June 26, 2026
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(Forth.News) President Trump signed an Executive Order on June 25, 2026 to advance regenerative agriculture and strengthen farm resilience, directing HHS, USDA and EPA to boost research and partnerships in the sector. [1]

Simultaneously, USDA Secretary Brooke Rollins announced a final Regenerative Feedstock Rule that will link regenerative practices to biofuel markets for crops such as corn, soybeans, sorghum and spring canola, offering farmers premium pricing and lower input costs. [2]

The rule establishes standards for carbon intensity, chain‑of‑custody, auditing and regenerative practices, and is supported by an updated Feedstock Carbon Intensity Calculator to help producers quantify benefits. [2]

Together, the order and rule represent the most significant market‑driven effort to reward voluntary regenerative agriculture, building on a $1 billion investment and a $700 million pilot program that has already supported over 49 million acres of conservation plans. [1] [2]   READ MORE

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Excerpt from U.S. Department of Agriculture: On the heels of President Donald J. Trump signing an Executive Order advancing regenerative agriculture, U.S. Department of Agriculture (USDA) Secretary Brooke L. Rollins simultaneously announced a final Regenerative Feedstock Rule, a landmark action that will help farmers voluntarily capture new value from regenerative agricultural practices through biofuel markets.

The announcement builds upon President Trump’s historic record of support for American agriculture and domestic biofuels. From delivering nationwide year-round E15, establishing the highest Renewable Volume Obligations in American history, and extending the 45Z Clean Fuel Production Credit through the Working Families Tax Cuts Act, the Trump Administration has consistently expanded markets for America’s farmers while strengthening U.S. energy independence. Today’s Executive Order and USDA’s Regenerative Feedstock Rule provide the next critical step by ensuring producers have a practical pathway to benefit from those expanding markets.

“Today’s USDA’s Regenerative Feedstock Rule put farmers, not Washington bureaucrats, in the driver’s seat. Instead of mandates, we’re creating market opportunities. Farmers who choose to implement regenerative practices will have new opportunities to earn premium prices, lower their input costs, improve soil health, and strengthen the long-term profitability of their operations,” said Secretary Rollins. This is exactly what President Trump’s America First agenda looks like: empowering farmers and ranchers, supporting rural communities, driving lower input costs, improving farmer profitability, advancing regenerative agriculture, and helping Make America Healthy Again.”

Together, President Trump’s Executive Order and USDA’s Regenerative Feedstock Rule represent the most significant market-driven effort ever undertaken to reward America’s farmers for voluntarily implementing regenerative practices while producing the crops that fuel America’s growing bioeconomy.

The Regenerative Feedstock Rule establishes a framework to connect regenerative agriculture practices to new markets within the biofuel supply chain for corn, soybeans, sorghum, and spring canola. These standards include:

  • Covered biofuel feedstock crops and participating entities throughout the supply chain;
  • Field-level quantification of crop-specific carbon intensity;
  • Mass balance chain-of-custody standards, including traceability and recordkeeping;
  • Auditing and verification requirements; and
  • Regenerative agriculture practice standards for covered feedstock crops.

USDA is also releasing an updated USDA Feedstock Carbon Intensity Calculator (USDA FD-CIC) to help producers quantify regenerative practices such as cover crops, and improved nutrient management, and conservation tillage—including no-till and reduced tillage. Producers can use the resulting reports when marketing eligible feedstocks to participating biofuel producers.

The new framework creates significant opportunities for America’s leading biofuel feedstock producers. American farmers currently produce approximately 6 billion bushels of corn used annually for ethanol production, with 68 percent of corn farmers already implementing at least one regenerative practice. Likewise, producers grow approximately 1.8 billion bushels of soybeans for biofuel production, while 70 percent of soybean farmers already utilize at least one regenerative practice. As participation grows, USDA expects the rule to expand premium market opportunities for producers across the country.

The Regenerative Feedstock Rule supports President Trump’s broader agenda to strengthen rural America by expanding domestic markets, promoting American energy dominance, reducing regulatory burdens, encouraging regenerative agriculture, and ensuring America’s farmers remain the most productive and competitive in the world.

These actions build on USDA’s Regenerative Pilot Program that provided $700 million to help American farmers adopt practices that improve soil health, enhance water quality, and boost long-term productivity, all while strengthening America’s food and fiber supply. Under this pilot USDA has already completed over 67,000 whole farm conservation plans, covering more than 49 million acres and over 1,500 conservation contracts worth more than $200 million.

Additional information about the Regenerative Feedstock Rule and the USDA Feedstock Carbon Intensity Calculator will be available at USDA.gov once posted to the Federal Register.  READ MORE

 

Excerpt from U.S. Department of Health and Human Services: The Executive Order directs HHS, USDA, and the Environmental Protection Agency (EPA) to strengthen research, innovation, and public-private partnerships that support regenerative agriculture while advancing the Make America Healthy Again agenda. Under the Order, HHS, USDA, and EPA will develop a research and evaluation framework to improve understanding of cumulative chemical exposures in the food supply using new scientific approaches. HHS will also launch a National Institutes of Health Grand Prize Challenge to accelerate innovative methods for evaluating, diagnosing, and addressing cumulative chemical exposures and will direct the Advanced Research Projects Agency for Health (ARPA-H) to prioritize research into technologies that reduce reliance on chemical crop protection tools while improving human health.

This effort builds on the February announcement by HHS, USDA, and EPA of more than $1 billion in investments to modernize American agriculture and strengthen the long-term security of our food supply.

Coinciding with today's announcement, HHS released a new Assistant Secretary for Planning and Evaluation (ASPE) issue brief, Regenerative Agriculture and Population Health: Examining How Regenerative Agriculture Can Support Healthier Food Systems and Better Health Outcomes. The report reviews emerging evidence on the potential connections between regenerative agriculture, food quality, environmental exposures, and human health while highlighting opportunities for additional research. The issue brief concludes that regenerative agriculture represents a promising area for continued scientific evaluation and may complement broader federal efforts to improve nutrition, strengthen food systems, and address upstream factors associated with chronic disease prevention.  READ MORE

 

Excerpt from DTN Progressive Farmer: The regenerative agriculture and crop protection research announcement came the same day that the U.S. Supreme Court issued a 7-2 ruling blocking state lawsuits over Roundup cancer warnings in Monsanto Co. v. Durnell. The decision marked a victory for the crop protection industry and a setback for advocates seeking additional state warning requirements.

Present at the event was Health and Human Services Secretary Robert F. Kennedy Jr., who previously fought against glyphosate in private legal practice and won multimillion-dollar verdicts. The Trump administration backed Bayer in the case, and Kennedy's position has since shifted.

The order also states that agencies should not take regulatory action beyond existing statutory requirements, a provision likely to reassure farm organizations that support crop protection tools often opposed by MAHA advocates.  READ MORE

 

Excerpt from Clean Fuels Alliance America: “Clean Fuels and its members thank Secretary Rollins for finalizing rules that will help farmers get more value from the expanding domestic market for biomass-based diesel,” said Kurt Kovarik, Clean Fuels’ Vice President of Federal Affairs. “We appreciate USDA’s responsiveness to industry input and simplification of the calculator. We look forward to future updates that will provide farmers additional feedstock and regenerative agricultural management options.”

In comments to the interim rule published in January, Clean Fuels recommended that the Feedstock Carbon Intensity Calculator include all feedstock pathways approved under the Renewable Fuel Standard. Clean Fuels specifically requested that the calculator include intermediate oilseeds – e.g., winter canola and pennycress – and conservation crop rotation as a regenerative agriculture practice. Clean Fuels will continue to contribute to research that will quantify the emissions reduction benefits of conservation crop rotation.

The U.S. Treasury has stated that it intends to enable biofuel producers to utilize the Carbon Intensity Calculator in calculating 45Z Clean Fuel Production Credit values for 2025 and 2026. The Department of Energy and Argonne National Labs must first incorporate the calculator as a module in the 45ZCF-GREET model and Treasury must then issue guidance allowing taxpayers to claim enhanced 45Z credits.  READ MORE

 

Excerpt from Growth Energy:  Growth Energy, the nation’s largest biofuel trade association, applauded the U.S. Department of Agriculture (USDA) today after it released its final rule on regenerative agriculture practices (the regenerative ag rule), bringing farmers one step closer to being recognized for their innovation through the 45Z Clean Fuel Production Tax Credit. The full text of the final regenerative ag rule—Technical Guidelines for the Production of Regenerative Agricultural Biofuel Feedstocks—and other useful information from USDA can be found here. 

Growth Energy CEO Emily Skor issued the following statement in response: 

“Thanks to the leadership of Secretary Rollins and her team at USDA, we are one step closer to ensuring farmers are recognized for their innovation and regenerative farm practices in the 45Z Clean Fuel Production Credit. Linking this rule to 45Z is critical for delivering more value to farmers, many of whom are already using regenerative practices. We applaud the Trump administration for finalizing this rule, and we look forward to working with the Departments of Energy and Treasury to finally connect the dots and unleash new investments in rural America and homegrown biofuels.” 

Learn more about 45Z here. READ MORE

 

Excerpt from Pivot Bio: The rule's recognition of biological nitrogen as a creditable practice is a meaningful step forward. Nitrogen management is the single largest driver of greenhouse gas emissions in crop production, and biological alternatives can help reduce nitrous oxide emissions and upstream manufacturing costs associated with conventional fertilizers.

...

For more than 15 years, Pivot Bio has been developing breakthrough fertilizer technologies that help farmers grow more while reducing dependence on imported nitrogen fertilizer. Today, the company's products have been used on nearly 20 million acres across North America and continue to help farmers improve productivity, profitability and performance.

"As policymakers look to strengthen America's food system, biological innovation and precision agriculture will play an increasingly important role," Abbott added. "The future of agriculture will require every available tool, from advanced genetics and digital technologies to biological crop nutrition, to help farmers meet growing global demand while building more resilient farming and food systems.”  READ MORE

 

Excerpt from Ag Funder News: The executive order does not specify timing or dollar amounts for any new investment apart from the existing $700 million pilot program.

Responses to the order run the gamut from optimism and applause to warnings about hype and hollow promises.

...

‘Real investment has to be paired with real measurement’

Elsewhere, industry stakeholders highlighted the importance of not just proving regenerative technologies but scaling them.

“This executive order lands at a moment when the private sector has already done the hard work of proving regenerative agriculture works,” Alexander Gillett, cofounder and CEO of sustainability intelligence platform HowGood, told AgFunderNews.

“The pilots are done, the resilience and supply stability benefits are documented, and the question has shifted from ‘does this work’ to ‘how do we scale it.’ Federal investment in research and education is exactly the kind of support that can help take regenerative practices from thousands of acres to millions.

...

He added: “The other piece this order can accelerate is data infrastructure. You can’t invest federal money effectively in regenerative agriculture without ground-truth data on what’s actually happening on the land, like what practices are being used, and what impact they’re having on soil, water, and farm resilience. Real investment has to be paired with real measurement, or we risk repeating the mistake of funding activity without being able to prove outcomes.”

Don’t believe the (regen ag) hype

Others pointed out that the order was signed the same day the US Supreme Court ruled that Bayer cannot be sued over state-level claims that its weedkiller Roundup causes cancer.

...

She (Anna Lappé, executive director of the Global Alliance for the Future of Food, on LinkedIn) went on to call the order “laughably meaningless” and “just the latest example of how words spoken by this administration have lost all meaning. Because, have no doubt, this is the same administration that has eviscerated the very programs and policies that would do so much to support regenerative farming.”

She added: “If this administration was serious about supporting regenerative farming, it would not be slashing funding for food assistance and local food programs, cancelling hundreds of millions in grants and land-buying programs that had aided Black farmers—and so much more.

“Don’t believe these hollow words, people.”

“What’s been missing isn’t belief in regenerative agriculture, it’s financing at scale. We’re seeing more blended finance funds pulling capital from banks, insurance companies, and corporates, and new financial products built specifically for farmers making this transition. Federal dollars aimed at research and education can de-risk that work and give lenders and insurers more confidence to move faster.”

...

Breaking down the order section by section, he ( Re:Source founder and former managing director of Climate Farmers Ivo Degn) concluded that it “essentially puts agriculture under the health banner,” puts “precision agriculture before regenerative agriculture,” and seems to mostly be about speeding up registrations for new pesticides.

“So the executive order on regenerative agriculture doesn’t order anything substantial. Departments are instructed to review, evaluate, consider. This is a nod to the MAHA movement after the Supreme Court decision, so it doesn’t seem too incongruous.

“Friends in the regenerative agriculture space in the US, I don’t know, but there is a chance they might be using you to support their friends in the chemical industry.”

...

“The data and experiences that Ecdysis Foundation has uniquely generated was heavily influential to the President’s final decision. This EO now engages the administration’s resources into supporting regenerative agriculture on an expanded scale, as well as mitigating the human health costs of associated with conventional farming practices.

“The hope is that this will also inspire Republican legislators into supporting regenerative initiatives. We are cautiously optimistic that this first step will support our bottom-up efforts to change the culture of food in the US and globally.” (-- Jonathan Lundgrend, director at Ecdysis Foundation)

...

“This Order is a welcome signal that regenerative practices and precision tools are being treated as central to farm resilience and profitability,” Gabe Sibley, cofounder of Verdant Robotics, told AgFunderNews. [Disclosure: AgFunderNews’ parent company AgFunder is an investor in Verdant Robotics.]

However, he noted that “it will only truly help the ag industry if implementation reduces friction for growers and rewards real, measurable improvements in their fields rather than adding new labels or paperwork.”  READ MORE

 

Excerpt from U.S. Department of Agriculture:   Last week, President Donald Trump signed an Executive Order to Advance Regenerative Agriculture and Strengthen American Farm Resilience. To coincide with the Presidents Executive Order, Secretary Brooke L. Rollins introduced a final Regenerative Feedstock Rule, a landmark action that will help farmers voluntarily capture new value from regenerative agricultural practices through biofuel markets.

Since then, here’s some of the overwhelming support from across the country:

Congress

Senator Chuck Grassley – “New biofuel feedstock rule is good step that empowers farmers and helps make clean fuels tax credit work better for them. At the hearing, this month I asked OMB nominee when farmers should expect this news so thank you for putting the rule out.”

Senator Roger Marshall – “The new Regenerative Feedstock Rule from USDA allows Kansas farmers to profit from the soil health practices that many already use on their operations— built on market opportunity, not government mandates. That's putting Farmers First and exactly where MAHA meets ag.”

Representative Jim Baird – “Attention Hoosier farmers! Secretary Rollins and USDA announced a final Regenerative Feedstock Rule that will help farmers access the biofuel market and create more opportunities for American biofuel producers. Glad to see this move from USDA that will strengthen Indiana agriculture and American energy dominance.”

Representative Eli Crane – “GREAT NEWS FOR ARIZONA FARMERS! Following President Trump's executive order advancing regenerative agriculture, the U.S. Department of Agriculture announced a new Regenerative Feedstock Rule, which will allow farmers to benefit from the 45Z tax credit - passed by Congress as part of the Working Families Tax Cuts Act. This will unlock billions of dollars for America's farmers.”

Representative Pat Harrigan – “USDA’s new Regenerative Feedstock Rule is welcome news. It puts the 45Z tax credit Congress passed to work, helping create new market opportunities for producers who qualify and opening the door to premium biofuel markets for crops grown here in North Carolina. North Carolina's farmers don't need more bureaucracy. They need more customers, stronger markets, and more ways to earn from the work they're already doing.”

Representative Randy Feenstra – “I applaud President Trump and Sec. Rollins for releasing the Regenerative Feedstock rule and to ensure that farmers can see more benefit from biofuels policy like 45Z or year-round E15. These actions create new opportunities for our farmers, strengthen American energy independence, and ensure rural communities across Iowa continue to lead the way in feeding and fueling the world.”

Representative James Gallagher – “Our family farms are the foundation of healthy food and healthy soil.  The announcement of this program is the key to supporting our farmers, improving the vitality of our farmland, and producing healthy food for America.”

Stakeholders

American Soybean Association – “ASA applauds Secretary Rollins and USDA for finalizing the Regenerative Feedstock Rule, which will unlock a new premium soybean market by empowering farmers to produce value-added biofuel feedstocks using on-farm conservation practices,” said Scott Metzger, ASA president and farmer from Williamsport, OH in a press release. “Domestic markets, bolstered by biomass-based diesel industry expansion, improve basis and expand a reliable, local customer base for our soybeans. Soybean farmers fought hard to improve 45Z to support domestic market growth for U.S. soy, and for the first time ever, the USDA Regenerative Feedstock Rule will ensure that the 45Z biofuel tax credit will not only benefit biofuel producers, but the farmers who produce homegrown regenerative biofuel feedstocks.”

Clean Fuels Alliance America – “Clean Fuels and its members thank Secretary Rollins for finalizing rules that will help farmers get more value from the expanding domestic market for biomass-based diesel,” said Kurt Kovarik, Clean Fuels vice president of federal affairs, in a press release. “We appreciate USDA’s responsiveness to industry input and simplification of the calculator. We look forward to future updates that will provide farmers additional feedstock and regenerative agricultural management options.”

Growth Energy – “Thanks to the leadership of Secretary Rollins and her team at USDA, we are one step closer to ensuring farmers are recognized for their innovation and regenerative farm practices in the 45Z Clean Fuel Production Credit,” said Emily Skor, Growth Energy CEO, in a press release. “Linking this rule to 45Z is critical for delivering more value to farmers, many of whom are already using regenerative practices. We applaud the Trump administration for finalizing this rule, and we look forward to working with the Departments of Energy and Treasury to finally connect the dots and unleash new investments in rural America and homegrown biofuels."

Iowa Corn Growers Association – “For years, Iowa corn farmers have led the nation in adoption and implementation of conservation practices, and today’s USDA rule provides a framework to reward conservation-minded farmers who are stewards of the land,” said Mark Mueller, ICGA President and farmer from Waverly, Iowa in a press release. “This new rule is an important step forward, and we believe it will help jumpstart opportunities for growers who are committed to doing what’s right for the land and the environment, while being recognized for their efforts.” Looking ahead, IGCA “looks forward to collaborating with USDA to maximize the opportunities this rule creates for farmers across Iowa,” the release said.

Iowa Renewable Fuels Association – “This rule is a great step forward from the draft rule, providing greater flexibility for farmers to adopt the practices that make the most sense for their farm,” said IRFA Executive Director Monte Shaw in a press release. “The benefits of recognizing regenerative ag practices ripple throughout rural America. Farmers can benefit from adopting these practices. Biofuels producers can benefit from sourcing low-CI feedstocks and accessing massive new markets around the globe. And maybe most importantly, biofuels production will now be the single biggest driver of regenerative ag practices that improve water quality throughout rural America. And this should just be the start. Over time, we hope that additional regenerative ag practices and additional biofuels feedstocks will also be included.” IRFA noted this rule is important and necessary, but “not the final piece of the puzzle.” Looking forward, “...the priority becomes the Department of Energy expeditiously incorporating this tool into the agency’s 45Z GREET model,” said Shaw. “Then, the Treasury Department must immediately recognize that updated model in time for farmers to make decisions this fall. It may seem a little early when this year’s harvest isn’t even out of the ground yet, but many farmers will already be making decisions by August that will impact the CI of next year’s crop.”

Renewable Fuels Association – “We appreciate all the hard work that Secretary Rollins and the entire USDA team put into these guidelines and the updated calculator tool,” said Geoff Cooper, RFA president and CEO, in a statement to members of the media. “America’s farmers are the most efficient in the world, and USDA’s rule begins to provide a mechanism that finally quantifies and recognizes the environmental benefits of cultivation practices that are already widely in use. While we are still analyzing the final guidelines and [feedstock CI calculator] tool, it appears several important changes have been made. We look forward to continuing our work with USDA, as well as DOE and Treasury, to ensure farmers and biofuel producers have access to flexible, market-based solutions for integrating the benefits of lower-carbon feedstocks into their supply chains.”

Pivot Bio – “America’s farmers have always been the world’s greatest innovators,” said Chris Abbott, Chief Executive Officer of Pivot Bio. “When they have access to new technologies and better science, combined with the freedom to choose the practices and tools that work best for their operations, they consistently produce more while using resources more efficiently. We welcome the administration’s efforts to accelerate innovation, strengthen public-private collaboration and help ensure American agriculture remains the most productive and resilient in the world.

“The USDA’s final rule represents the kind of science-based policymaking that farmers and agricultural innovators need,” Abbott said. “By recognizing biological fertilizers and other advanced nitrogen management tools as creditable low-carbon practices, the USDA has sent a clear message that innovation that genuinely reduces emissions and improves farm economics will be valued and rewarded. That is exactly the right policy direction.”

Marquis – “Marquis commends the Trump Administration for the release of the United States Department of Agriculture (USDA) final rule on regenerative agriculture practices - We thank President Trump and Secretary Rollins, the Administration, and the entire team at USDA for their leadership and tireless work on this project that will support the farmers we work with every day at Marquis. These actions put farmers first and advance policies that support long-term profitability, build new market opportunities, improve soil health, and lower input costs through innovative regenerative agriculture practices. For years, farmers have invested in practices that make their operations more efficient and sustainable. - America’s farmers are ready. Today, the Trump Administration and USDA have shown how America’s farmers will continue to lead through innovation with investment into resilient and regenerative soils for generations to come.”

National Sorghum Producers – “National Sorghum Producers thanks Secretary Rollins and USDA for recognizing the role farmers play in building strong domestic energy markets and creating new opportunities for value-added agriculture,” said NSP Chair Amy France, a sorghum producer from Scott City, Kansas. “Sorghum is well positioned for this moment. Our producers have long understood the value of efficiency, resilience and practical conservation, and this rule is an important step toward ensuring those practices can create real market opportunities at the farm gate.”

National Corn Growers Association – “We appreciate the administration’s recognition of the value biofuels provide for our country’s energy supply and security. -We also appreciate the administration’s recognition that farmers have always cared for their land. -As noted by USDA, it’s also true we have embraced for years many practices that are considered regenerative, with nearly 70% already implementing at least one practice. Thanks to wide-scale adoption of precision agriculture tools by corn farmers, we are more efficient and effective with our resources than ever before. We welcome further investment in this space that will continue our ability to efficiently produce food, fuel and fiber for our world. -We look forward to closely reviewing the Regenerative Feedstock Rule.”

Press Coverage

Iowa Capital Dispatch – “USDA’s finalized rule could boost adoption of regenerative farming practices. Corn and soybean farmers can now quantify carbon intensity of crops bound for biofuels.”

RFD-TV – “The White House says the order is intended to provide farmers and ranchers with the resources needed to keep crops healthy, abundant, and affordable. At the same time, the USDA finalized a new feedstock rule that will allow farmers to earn more for using regenerative agriculture practices.”

The Fence Post – “In a sign of the importance President Trump attaches to the Make America Healthy Again movement, the Health and Human Services Department and the Agriculture Department both announced late Thursday that Trump signed an executive order titled ‘Advancing Regenerative Agriculture and Strengthening American Farm Resilience.’ The announcements came the same day Trump hosted farmers at a White House dinner.”  READ MORE

 

Excerpt from Dakota Farmer/Farm Progress: USDA's final 45Z guidelines offer carbon premiums, but require direct biofuel delivery.

...

Now, farmers have a roadmap to follow. The new guidelines include a field-by-field verification system for corn, soybeans, sorghum and canola. This allows growers to earn a reward in the form of a premium based on the verified carbon intensity outcomes associated with their farming practices. 

However, some — such as livestock producers — could be left behind. 

"We now have tremendous clarity here on how 45Z could look," said Mitchell Hora, founder of Continuum Ag and a southeast Iowa farmer who has been tracking the program since the Inflation Reduction Act passed in August 2022. “This latest calculator from the USDA is an improvement from the original version released in January of 2025.”

...

What farmers must document

Data documentation will play a vital role in these new rulings, including requirements for farmers to document specific practices for each field. This includes total synthetic nitrogen applied, actual field yield, manure applications and nitrogen inhibitors. 

“You’ll have to have receipts or some type of evidence of these practices,” Hora explained, “exactly like what Continuum has been collecting from the very beginning.” 

All practices must be supported by receipts or digital records maintained for five years.

Nitrogen inhibitors will bring rewards for producers, provided proper documentation occurs.

...

“It’s the classic farmer creativity — figure out how to be as efficient as you can,” Hora noted. 

Cover crops provide substantial carbon intensity reductions, which is different from the previous guidelines. 

“There’s a benefit for cover crops — we knew that was going to be the case,” Hora said. “The only change on the cover crop side is that now you can graze your cover crop. If you’re grazing, it doesn’t give you quite as much credit, but it’s still pretty good.” 

...

“You can’t till your cover crop,” Hora said. “You have to spray it off, graze it off, crimp it or mow it, but you cannot burn the residue or till it in and get the credit for it.”

Mass balance problem

The new guidelines require that farmers deliver crops directly into the biofuel supply chain, either right to the ethanol plants or to elevators that supply them. This represents one of the most contentious elements of the program, as it leaves out some producers.

...

The USDA cited lack of infrastructure for book-and-claim systems in maintaining the mass balance approach, although officials indicated openness to future changes.

...

Verification and next steps

Farmers must undergo annual audits through accredited verifiers, with verification costs set to $7 per acre through Continuum or other intermediary options that might have different payment plans. The verification company faces audits, with auditors then selecting a portion of farmers for site visits.

...

The IRS and Department of Energy still must integrate these rules into the broader 45Z framework, likely after the first of the year. The program will apply to 2025 harvested crops going into 2026 biofuel production, with 2024 crops largely excluded.

Farmers can begin documenting practices immediately through verification platforms to position themselves for participation when ethanol plants begin purchasing low-carbon feedstock data.

Trialing new regenerative practices such as cover crops or regenerative tilling can be a good start to begin with this process, and it doesn’t have to be on a large scale.

For farmers willing to adapt their practices and navigate new channels for their crop, this program represents opportunity.    READ MORE

 

Excerpt from Ethanol Producer Magazine:  A regulatory agenda released by the White House Office of Management and Budget on July 3 indicates the U.S. Department of the Treasury currently plans to issue final 45Z clean fuel production credit regulations in November 2026. READ MORE

 

Excerpt from Cibus Capital/Ag Funder News: This drops us straight into the dilemma at the heart of Charles Mann’s book “The Wizard and the Prophet.” On one side stands Norman Borlaug, the wizard, convinced that human ingenuity and technology can keep stretching the planet’s carrying capacity. On the other is William Vogt, the prophet, warning that there are ecological limits we ignore at our peril.

For decades, agricultural policy and capital markets have overwhelmingly sided with the wizard. The Green Revolution held that synthetic fertilizers, pesticides, irrigation systems, and genetically engineered crops were the tools of a credo that said, in effect, we can always innovate our way out of scarcity.

That vision fed billions, but it also drove soil depletion, biodiversity loss, nitrogen loading, and a dangerous dependence on fragile supply chains and cheap fossil energy, as the most recent wars make blindingly obvious.

Vogt’s warning was that those so-called externalities were not external at all. They were accumulating in the very systems that make life possible: soils, water cycles, climate and human health. Overshoot the planet’s boundaries, he argued, and the correction will not be gentle.

For a long time his voice was easy to dismiss as pessimistic or anti-progress. Now, as we experience climate volatility, chronic disease burdens, and mounting geopolitical shocks to food systems, his perspective looks less like doom mongering and more like basic risk management.

...

Regenerative approaches, from crop rotations and cover crops to mob grazing, minimum till or no till seeding and biological inputs, are not about retreating from technology. They are about re-engineering our systems so that technology amplifies the work of living ecosystems instead of replacing it.

This is where the binary choice between wizard and prophet becomes unhelpful. The future of food must be both technologically sophisticated and ecologically bounded.

We need wizards who can design better seeds, build and operate sentient robots, and use data to optimize supply chains. We also need prophets who insist we measure success in terms of soil organic matter, water retention, nutrient density, farmer livelihoods, and community health.

...

The deeper point reaches beyond any single executive order. For a century we have built an agricultural paradigm that treated the Earth as a warehouse of raw materials, not as a living system with thresholds. The wizard promised we could push those thresholds indefinitely. The prophet warned we could not.

The emerging regenerative movement, and the companies Cibus backs, are proving that we can honor the prophet’s boundaries without abandoning the wizard’s tools. We can design technologies, processes and financial structures that regenerate the very foundations of our prosperity.

In that sense, the new attention to regenerative agriculture is not the destination but the invitation. It invites policymakers to embed resilience into the rules of the game. It invites investors to recognize that discounted cash flow models must now price climate, health and social risk as core variables. And it invites all of us, farmers, consumers and entrepreneurs, to accept a simple truth: in the long run, the only companies truly worth more are the ones that sustain, rather than erode, the systems that keep us alive.   READ MORE

 

Excerpt from Kansas Farmer/Farm Progress:  Unlike previous biofuel incentives that focused on specific fuel types, the 45Z tax credit uses a technology-neutral approach. The credit amount depends on the carbon intensity of the finished fuel.

Carbon intensity measures the total greenhouse gas emissions generated throughout the fuel's life cycle, including crop production, transportation, processing and distribution. The lower the carbon intensity score, the greater the potential tax credit for the fuel producer.

For farmers, this means that the way crops are grown can directly influence the value of the fuel produced from those crops. Agricultural practices that reduce greenhouse gas emissions can help lower the carbon intensity of corn, soybeans and other feedstocks used to produce ethanol, renewable diesel, biodiesel and sustainable aviation fuel.

Many conservation practices already adopted by farmers may contribute to lower carbon intensity scores. These include practicing reduced or no-till farming, planting cover crops, improving nutrient management, using precision agriculture technologies, and adopting more efficient irrigation and fuel management practices.

While specific accounting methods continue to evolve, these practices are expected to become increasingly valuable as clean-fuel markets mature.

As biofuel producers seek to maximize their 45Z tax credits, they are expected to place greater emphasis on sourcing feedstocks from farms that can document sustainable production methods. This could create premium pricing opportunities, preferred marketing agreements, or new contracts for farmers who maintain detailed production records and participate in conservation programs.

Good recordkeeping will become increasingly important. Farmers should document fertilizer applications, crop rotations, tillage practices, fuel usage, cover crop implementation and other management activities that may affect the carbon intensity of their crops. Accurate records can help verify sustainability practices and support participation in emerging low-carbon supply chains.

Changing the energy sector

The 45Z incentive also may strengthen rural economies by encouraging additional investment in ethanol plants, renewable diesel facilities and sustainable aviation fuel production. Increased demand for agricultural feedstocks can benefit local communities through expanded markets, job creation and infrastructure development while supporting America's growing renewable energy sector.

Although many implementation details continue to be refined by federal agencies, farmers do not need to wait to begin preparing. Investing in conservation practices, adopting precision agriculture technologies and improving operational efficiency can position farms to meet future market expectations while delivering agronomic and environmental benefits.

The 45Z tax incentive represents more than a policy change; it also signals a shift toward rewarding agricultural production that contributes to lower-carbon energy solutions. Farmers who embrace sustainable practices and maintain strong production records may be well positioned to benefit from new market opportunities as the clean fuels industry continues to grow.  READ MORE

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White House Treasury Department soybeans sorghum renewable volume obligation (RVO) Renewable Diesel/Green Diesel/HVO/Paraffinic Diesel regenerative farming nutrients nutrient management monitoring/measuring reporting verifiction (MRV) mass balance standard fertilizer farm policy executive order ethanol/bioethanol E15 Department of Health and Human Services Department of Energy (DOE) Department of Agriculture (USDA) cover crops corn/maize Carbon Intensity (CI)/Carbon Footprint Canola/Rapeseed biodiesel Agricultural Policy 45Z Clean Fuel Production Tax Credit
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