Bi-partisan farm legislation has been introduced in Congress.

U.S. Representatives Tracey Mann (KS-01) and Marcy Kaptur (OH-09), alongside Senators Roger Marshall (R-KS) and Sherrod Brown (D-OH), introduced the Farmer First Fuel Incentives Act to restrict eligibility for the Clean Fuel Production Credit (45Z) to domestically produced feedstocks and to extend the credit to 2034.

According to Mann’s Office, the ten-year credit will allow for more certainty as the U.S. ethanol industry builds infrastructure to open new markets for farmers, increase the production of ethanol across the country, and incentivize domestic feedstocks while continuing to support global renewable fuel production made from a wide array of feedstocks.

“In no world should American tax incentives first benefit foreign producers,” said Rep. Mann. “While the use of foreign feedstocks can play an important role in producing domestically manufactured ethanol, biodiesel, renewable diesel, and sustainable aviation fuel, we must not displace harvest in America. Our legislation puts American farmers first by ensuring that American tax credits are incentivizing American-grown products.”

“I joined my colleagues in this important bicameral and bipartisan effort because helping American farmers, producers, and growers goes beyond state and party lines,” said Congresswoman Marcy Kaptur (OH-09), senior member of the House Appropriations Subcommittee on Agriculture. ”We must ensure the Clean Fuel Production tax credit is structured in a way that benefits domestic producers, and not one that advantages foreign-produced feedstocks from China or Brazil. Our legislation will extend this credit through 2034 and bolster American energy independence by prioritizing American producers and the production of domestic biofuels.”

“It’s very tough in farm country with high interest rates and low commodity prices, which is exactly why we can’t have a tax policy that will lower commodity prices even more,” said Senator Marshall. “While we support free trade and open markets, we do not believe foreign feedstocks should be incentivized through the hard-earned dollars of U.S. taxpayers to the detriment of American farmers. This legislation puts farmers FIRST to ensure they are the primary beneficiaries of renewable fuel tax incentives and provides businesses a decade of certainty.”

“American tax dollars should support American farmers – not imported feedstocks,” said Senator Brown. “To continue to grow the biofuels industry and open new markets for Ohio farmers, we must stop taxpayer money from subsidizing a surge in Chinese cooking oil or any other foreign feedstock from infiltrating the American market. Our bipartisan bill ensures these investments benefit Ohio farmers and Ohio energy producers.”

The legislation is cosponsored by Representatives James Comer (KY-01), Nikki Budzinski (IL-13), and Don Bacon (NE-02) and Senators Pete Ricketts (R-NE), Amy Klobuchar (D-MN), Deb Fischer (R-NE), and Tammy Baldwin (D-WI).

The Farmer First Fuel Incentives Act is supported by Growth Energy, National Oilseed Processors Association, National Corn Growers Association, American Soybean Association, Ohio Corn and Wheat Growers Association, Ohio Soybean Association, Kansas Corn Growers Association, Kansas Soybean Association, Kentucky Soybean Association, Scoular, and Louis Dreyfus Company.

“Our farmers need policies that protect their ability to compete fairly as the United States strives to be a leader in renewable fuels markets,” said Ed Prosser, Senior Vice President at Scoular. “We greatly appreciate Representative Mann and his colleagues for introducing this legislation that helps ensure American agriculture will have a well-deserved seat at the table in the journey to lower the carbon intensity of our energy supply.”

“NOPA commends this bipartisan, bicameral legislative effort which puts U.S fuel producers, U.S. crushers and U.S. farmers first. We thank Senators Brown and Marshall and Representatives Mann and Kaptur for their leadership,” said NOPA President and CEO Kailee Tkacz Buller. “We support free trade and open markets, but do not believe foreign feedstocks should benefit on the backs of U.S. taxpayers to the detriment of U.S. farmers. Without this fix, the 45Z credit will incentivize the use of foreign feedstocks over those grown by U.S. farmers. Our industry has made significant investments to expand U.S. crush capacity by 30 percent and this fix is pivotal to ensuring these investments are delivered.”

“Biofuel production paves a key path for our country to be a clean energy leader, and U.S. farmers who grow the crops going into those biofuels take pride in helping reduce greenhouse gas emissions while supporting the U.S. economy and energy independence,” said ASA President Josh Gackle, a North Dakota soybean farmer. “However, for continued growth of America’s promising biofuels industry, U.S. farmers need the support of a final 45Z rule that prioritizes domestically sourced feedstock.”

“Farmers and bioethanol producers need to know they’ll be able to rely on the 45Z tax credit for more than just the next few years,” said Growth Energy CEO Emily Skor. “This bill gives them the certainty they need to unlock significant investments in their operations and in the rural communities that depend on them. We commend Representatives Mann and Kaptur for introducing this bill and all of our House champions for making a 45Z tax credit extension a top priority as we head into the tax reform process next year.”

“Ensuring American farmers reach maximum profitability and build resiliency to pass down their farms to the next generation should be our top priority,” said Adam York, Kansas Sorghum Producers CEO. “This legislation helps make sure the intended benefits of this program arrive into our rural economies.”

“Corn growers are making every effort to help the airline industry lower its greenhouse gas emissions through the use of corn ethanol,” said Minnesota farmer and NCGA president Harold Wolle. “We are deeply appreciative of these leaders for introducing legislation that establishes requirements for the tax credit that will level the playing field for America’s corn growers.”

“The Farmer First Fuel Incentive Act recognizes the vital role of American agriculture in 45Z,” said Craig Meeker, Chairman of National Sorghum Producers. “This legislation ensures that the guidance is designed and implemented in a farmer-focused manner, supporting domestic clean energy production and stimulating economic growth across rural America.”

“U.S. soybean farmers have been at the forefront of our domestic clean-energy production through the booming biodiesel and renewable diesel industry over the last decade,” said Kaleb Little, CEO, Kansas Soybean Association. “The Farmer First Fuel Incentives Act ensures our Kansas soybean growers maintain access to this vital market sector going forward and strengthens the clean fuel production credit for the future.”