In Case You Missed It: Mitchell Hora, seventh-generation Iowa farmer and founder of Continuum Ag, authored an op-ed for Agri-Pulse emphasizing the urgent need for collaboration between farmers and policymakers to effectively scale up domestic sustainable aviation fuel (SAF) production. Hora argues that SAF presents an immense opportunity for American farmers, but successful implementation on the ground requires clear policies and resources from lawmakers. 

“By working together, and hearing the voices of American farmers, the administration can put a framework in place that incentivizes American farmers to advance domestic SAF production – delivering environmental benefits while building a more resilient, sustainable and prosperous future for rural communities across the country,”  Hora writes.

Collaboration with farmers is essential to building America’s Sustainable Aviation Fuel market

By: Mitchell Hora

Agri-Pulse

July 17, 2024

American farmers are ready to make the United States the world’s leading producer of Sustainable Aviation Fuel (SAF), which currently represents the most promising pathway to achieving net zero carbon emissions in aviation. We just need decision makers in Washington to put smart policies in place that justify the significant investments in climate-smart agriculture practices that are needed for SAF to truly take flight.

To help achieve its bold goal of increasing domestic SAF production to 35 billion gallons annually by 2050, the administration is trying to incentivize farmers to play their part and recently released the long-awaited, revised GREET model guidance. The administration’s effort took only a half step forward in advancing sustainable agriculture practices.

In order to qualify for the 40B SAF tax credit, corn farmers must check all three boxes of participation in the following farming practices: cover cropping, no-till farming and the use of enhanced efficiency fertilizer. In comparison, soybean farmers are required to utilize both cover crop and no-till practices, but no fertilizer requirements are included. This “check-the-box” style of regulation creates uncertainty and lack of malleability, which means very few farmers will realistically qualify under the updated guidance.

Leaving eager American farmers scratching their heads doesn’t just make it harder to achieve the administration’s SAF goals. It also makes it harder to grow a thriving American bioeconomy that promotes sustainable development across the agricultural value chain while simultaneously revitalizing rural communities.

Expanding SAF production in the U.S. represents an enormous economic opportunity for rural America. The demand for feedstocks used in SAF – corn, soybeans and other oilseeds – can stabilize the U.S. agricultural market and provide a reliable income stream for family farmers. Establishing and expanding biofuel refineries and production facilities in rural areas can stimulate job growth and provide opportunities for skilled workers, engineers, and technicians. Studies suggest building America’s SAF market could lead to nearly 400,000 jobs at its peak, with 225,000 jobs in the Heartland alone.

Make no mistake, the global race to dominate the SAF market is on. While the U.S. specializes in raising the exact feedstocks used in SAF production, international competitors such as Brazil are primed to take the lead in this space. We can’t afford to let America fall behind.

If our nation is to realize the true long-term economic and environmental benefits of domestic SAF production, we need the right regulatory framework. Farmers proactively invest in sustainable farming practices and want to make the industry more climate-friendly, mindful that our livelihoods depend on the health of our land and air. But under the guidance released by the Biden administration, farmers will not be able to become a significant part of the SAF future. Furthermore, the current IRS guidance only allocates a 10 CI point reduction to Climate Smart farmers. In reality, the Argonne GREET model proves that utilizing good soil health practices can result in a substantially greater CI reduction coming off the farm.

Collaboration is essential to drive innovation and scale up domestic SAF production. I urge the Biden administration to accept the Argonne GREET Model as the Gold Standard that it is. The GREET model feedstock calculator accurately, yet conservatively, highlights the CI reduction benefits occurring on the farm. I further encourage this administration to work directly with farmers in each region to identify nuanced impacts of climate-smart practices and help us most accurately tell the promising story of American agriculture. By working together, and hearing the voices of American farmers, the administration can put a framework in place that incentivizes American farmers to advance domestic SAF production – delivering environmental benefits while building a more resilient, sustainable and prosperous future for rural communities across the country.

A seventh-generation farmer from Washington, Iowa, Mitchell Hora is the Founder and CEO of Continuum Ag. He is affiliated with Americans for Clean Aviation Fuels, a diverse coalition of the largest industrial sectors in America devoted to promoting the economic benefits of building a robust domestic market for clean aviation fuels.