Farm Progress

Farm Progress America, May 21, 2024

Mike Pearson takes a look at long awaited guidance from the U.S. Treasury Department regarding sustainable aviation fuel production from biofuels.

May 21, 2024

Mike Pearson tells listeners how biofuel producers, environmentalists and airplane companies have been searching for a way to cut carbon emissions from jet fuels. These account for two percent of the country's total emissions.

One proposed solution is Sustainable Airplane Fuel (SAF) which is chemically identical to jet fuel but made from renewable or is bio-based rather than fossil fuels.

However, SAF is not price competitive with conventional jet fuel.

The U.S. Treasury Department included some help in the Inflation Reduction Act of 2021 which included a directive to craft a tax policy that would drive more SAF production.

Under the new rules, biofuels producers can qualify for $1.25 per gallon tax credit which could increase based on the production of traditional forester fuels.

The new rules will emphasize farming practices that reduce the use of foster fuels and give farmers credit for practices in their operations. However, some say the use of the cover crop requirement or no-till production might be too strict.

President Biden has made it a goal to produce 3 billion gallons of SAF by 2030.

Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, farm broadcaster and host of This Week in Agribusiness.

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