American Ag Today- 10/22/24

and welcome into a brand new episode of American ad today, produced by the American ad radio network. I'm your host Jesse Allen. Thanks for joining us here today. Well, as we kick off our program, we have a special report as we take a look at

Farm and biofuel groups pressing the Biden administration for answers on 45 Z tax credits related to sustainable aviation fuel. American Ag networks Corinne LaRue has been studying this topic and has more in this report.

Farm and biofuel groups are urging the Biden administration for clarity on critical tax credit for biofuels, particularly in the growing market for sustainable aviation fuel. Renewable Fuels Association President Jeff Cooper points out that many questions remain unanswered regarding the implementation of the 45Z tax credits, which are essential for supporting that biofuel industry's role in reducing emissions.

What will the carbon intensity modeling look like? How will climate smart ag practices be integrated into carbon intensity scoring and just so many other questions? Questions that might not be answered until after November. The elections, of course, will have some significant influence on how these issues are ultimately addressed and how the next administration and the next Congress approaches these topics.

RFA and growth energy are pressing for a November Treasury Department rule with 45 Z set to take effect next year. But Iowa Senator Chuck Grassley isn't encouraged by early guidance. The bureaucracy cherry picked three growing methods that farmers had to implement all at once if their corn was going to qualify as a feedstock.

RFA's Cooper says farmers felt limiting those to covercropping no-till and certain fertilizers is impractical. The reaction from farmers was that that's a non-starter. Nobody's going to be able to do that or very few folks will be able to do that. So we've been advocating for a much broader suite of climate smart ag practices.

Growth energy has made similar requests to the IRS since farming needs change based on location, types of crops and soil, and weather. While the movement of renewable fuels for engines in the air, water, or on land sound promising, some folks voice concerns over the practicality and safety of using plant-based fuels over conventional fossil fuels.

For starters, it's important to remember SAF isn't going to replace that conventional jet fuel, but rather add to it. Right now, conventional jet fuel can only be blended with SAF up to 50%. According to nonprofit aviation benefits, SAF blends are almost chemically identical to traditional jet fuel. So where do the earth-saving benefits come in? Experts say it's how the fuel is made.

For instance, they say that sustainably produced alternate fuel can reduce emissions by up to 80% today across that lifecycle of the fuel. Conventional jet fuels extract fossil resources from the ground, releasing long stored carbon into the atmosphere. In contrast, SAF primarily uses carbon from currently available biomass sources like corn and soybeans, for example.

Reports show that SAF can be made from animal waste, algae, recycled cooking oil, wood, grass, or even municipal waste. These materials can be processed through anaerobic digestion or composting to produce biogas or other energy forms. Although SAF is gaining popularity to help airlines achieve that net zero by 2050 goal, it's not necessarily a new product.

The first biofuel test flight was done in 2008 with a commercial aircraft, and the Global Fuel Standards Agency ASTM International certified SAF back in 2011. Since then, more than 225,000 commercial flights have been powered by SAF.

None of those flights, by the way, reported mechanical issues or crashes caused by the use of SAF blends. However, nonprofits like the World Resources Institute downright refute the validity of the model used to calculate emissions and carbon recapturing, one that's been adopted by the International Civil Aviation Organization.

The environmental nonprofit claims that in order to meet net zero 2050 guidelines, the U.S. would have to significantly ramp up production of crops like corn and soybeans, and in turn ramping up the need for more farmland. The WRI says restoring forests would be two to four times more effective at curbing climate change.

It's important to note that according to Influence Watch, WRI receives hundreds of millions of dollars a year via grants from government agencies, private foundations, and corporations. Among those generous donors are the Bill and Melinda Gates Foundation, the Bezos Earth Fund, and the Rockefeller Brothers Fund. Andrew Steer, the current president of the World Resources Institute, will be stepping down from his position to become the president and CEO of the Bezos Earth Fund. I'm Corinne LaRue.

And thanks again to Corinne for that special report. As we take a look at other Agnew headlines here on today's program. In an October 14th letter to dealers, Kubota Unit Land Pride said it would be stopping production at its facilities in Kansas due to continued inventory growth in Kansas and low order backlog.

Production will be paused from Wednesday, November 27th until Monday, January 6th of 2025. According to the letter, the company has inventory on hand and will continue to ship orders through the work stoppage. The letter further states that, quote, this pause in production may affect some parts that are manufactured in our facilities. We have identified high-value manufactured parts that are working to produce them ahead of the shutdown. However, even with careful planning,

There could be delays in the shipment of land pride manufactured replacement parts to minimize interference with end of your retail. Our sales and marketing teams are here to help. You have our commitment that we will work diligently to move inventory around to help you save every retail. As mentioned above, we will still be shipping from Kansas. We also have the ability to offer an in territory transfer or even transfer a unit from a nearby territory end quote.

Also, John Deere announced plans last week to expand its John Deere Riemann Course Center facility by an additional 120,000 square feet. A $13.5 million expansion will break ground mid 2025 and be completed in 2026. Investment will bring the facility's total footprint to 400,000 square feet in size. The facility located in Stratford, Missouri is one of several John Deere Riemann facilities in the Springfield region.

Now John Deere remand manufacturers, parts and components to deliver light new performance at a lower cost with reduced environmental impact. The company's highly skilled local employees use a variety of techniques to bring components back to their original John Deere specifications, or better.

Also, as we look at news headlines, CHS Incorporated tops the list of the nation's top cooperatives on the annual Co-op 100 from the National Cooperative Bank. The list features the top 100 revenue grossing cooperatives in America.

According to the NCB list, in 2023, these member-owned member-controlled businesses generated revenues of $325 billion, a slight increase from 2022. CHS topped the list, followed by dairy farmers of America, Lando Lakes Inc., Gromark, Inc., and Wakefern Food Corp. copyright. Now, again, that is the co-op 100 annual list from the National Cooperative Bank.

And with that, we are out of time on this episode of American Ag today produced by the American Ag Radio Network. Thank you for joining us. As always, find more online. Just go to americanagnetwork.com. That's americanagnetwork.com. I'm your host Jesse Allen wishing you and yours a great rest of your day.