Nebraska corn farmers are frustrated and unsatisfied by the announcement from the
U.S. Department of Treasury (USDOT) limiting corn-based ethanol’s contribution to the decarbonization
of the aviation sector, sustainable aviation fuel (SAF), through the 40B tax credits. Today’s update to the
Department of Energy’s (DOE) Argonne GREET model stated that corn-based ethanol must be grown
with additional on-farm conservation practices to apply for tax credits available in the Inflation
Reduction Act.

Among the updates made to GREET include measurements involving land use changes related to
commodity production. The changes, which are not justified, negatively impact the carbon scores of
ethanol making it more difficult for corn to qualify as a feedstock.
The updated model will also require farmers to use no-till practices, enhanced efficient fertilizers and
cover crops, which is not practical for all acres of the large and varied geographic region in which corn is
grown.

“This announcement sets Nebraska farmers back as corn should continue to be a viable source of low-
carbon feedstocks for ethanol and ultimately sustainable aviation fuels,” said Chris Grams, president of

the Nebraska Corn Growers Association. “The guidance has very limited positive outcomes for Nebraska
farmers and farm families as it forces voluntary practices to become mandatory for farmers across
Nebraska’s variation of environments where the practices may not be feasible.”

The United States Department of Agriculture (USDA) Economic Research Service forecasts farm net
income in 2024 at $116.1 billion, a 37 percent drop from 2022. When farmers all over the U.S. are forced
to implement practices to qualify for market access, the one-size-fits-all approach is unworkable. The
difference in climate, soil and season makes it difficult for Nebraska farmers to subscribe to the same
conservation regimen in all areas of the state, much less in all areas of the country.

“Today’s announcement sets the foundation for the future for 45Z tax credits and the guidance that will
further affect SAF production moving forward. NeCGA will continue to defend Nebraska farmers as the
rule making process begins.”