The U.S. Department of Treasury unveiled a new greenhouse gas reduction model that will be used to qualify for the sustainable aviation fuel (SAF) tax credit. This includes a pilot program that accounts for sustainable farming practices in the carbon intensity (CI) calculation for corn and soybean feedstocks.

Producing corn using no-till practices, cover crop and enhanced efficiency fertilizer will qualify for a greenhouse reduction under the pilot program. Likewise, soybeans grown using cover crops and no-till will receive a reduction.

The American Soybean Association points out that growers in the Northern Plains face short growing seasons and unpredictable fall weather that could make the cover crop requirement difficult.

The 40B SAF tax credit expires at the end of the year. The 45Z Clean Fuel Production tax credit starts next year, and it will include the SAF.

Read more about the SAF tax credit changes here.