The U.S. Senate has released statements regarding the budget reconciliation legislation proposed. The statement included changes in Price Loss Coverage program and 45Z Clean Fuel Production Credits.
The
U.S. Senate Committee on Agriculture, Nutrition, and Forestry released an updated reconciliation plan last week that originally included a damaging “corn price floor” under the
Price Loss Coverage (PLC) program. IL Corn joined with corn growers across the nation to push back and was successful in removing that provision. Still, there are ongoing concerns about the regional equity in the farm programs, as policies that benefit one area can come at the expense of another.
The Senate also revealed its plan for the
45Z Clean Fuel Production Credit (45Z). The credit would extend through 2031, but the Senate version would allow up to 80 percent of the credit to apply to fuels made with foreign feedstock after 2025. IL Corn prefers the House version of the One Big Beautiful Bill Act, limiting the incentive for feedstock produced or grown outside of North America. The Senate language also reduces the value of synthetic aviation fuel (SAF) credit from $1.75 to $1.00, which could potentially negatively impact corn farm family profitability.
To strengthen 45Z, IL Corn supports the inclusion of a “book and claim” accounting system for implementation of the credit, the expansion of eligible conservation practices, a reduction in Carbon Intensity (CI) threshold for SAF to 30%, and transferability for the life of the credit.
“Illinois corn farmers made their voices heard, and we’re seeing results. The progress in the reconciliation plan is a step forward in the right direction—but we’re not done. We’ll continue working to ensure the final decisions made in D.C. reflect the needs of our farm families, our fuel, and our future,” Garrett Hawkins, Waterloo, IL farmer and IL Corn Growers Association President.
The changes in the Senate reconciliation plan show the impact that corn farmers have on legislation. IL Corn is proud of the progress made but looks forward to continuing to work with Congressmen to improve the legislation that benefits corn farmers and the biofuel industry.
