What Illinois Corn Farmers Need to Know About 45Z

The 45Z Clean Fuel Production Tax Credit is moving closer to implementation, and Illinois corn farmers should understand how their farming practices could play a role in the value of the credit.



U.S. Department of Agriculture (USDA) has released its final Feedstock Carbon Intensity (FD-CI) Calculator, which will be used to calculate field-level carbon intensity scores for corn. A lower CI score can help lower the overall carbon intensity of ethanol, potentially making the fuel eligible for a higher 45Z credit.

The credit itself goes to the ethanol producers, not directly to farmers. Each ethanol plant will determine how any value generated through the credit is passed back to farmers.

The calculator considers factors including actual yield, nitrogen use and efficiency, nitrogen inhibitors, tillage practices, grazed cover crops, manure, soil testing, grain deliverability, and the major land resource area where the grain is produced.

For farmers, the best steps right now are to keep accurate records of farming practices and inputs, stay current on soil testing, consider practices that improve efficiency and soil health, and talk with their ethanol plant about it plans for 45Z