Even Amid Tax Credit Uncertainty, Farmers Optomistic About Market Oppertunities

As airlines work towards net-zero carbon emissions by 2050, the agriculture industry sees this as an opportunity for a “boom” in the corn markets. The 45Z tax credit was introduced in the Inflation Reduction Act by the Biden administration, creating potential market opportunities for sustainable aviation fuels (SAF) and other sustainable transportation fuels. However, farmers are still waiting for more information regarding the implementation of these credit guidelines.

“Even if the credits don’t necessarily make their way down to the farm gate, the increased demand and the impact that could have on our commodity prices is great,” says Hultine. “A lot of positive things could come out of this if we can if we can switch, flip the switch, as others have said. We have some guidance, but we’re still trying to really figure out what that means, or how that works, and what it really looks like.”

As discussions of SAF continue, producers are looking at it as an opportunity to boost domestic corn markets, just as ethanol did. Ethanol production currently accounts for about 35 percent of the U.S. corn crop.