“Little to no” ethanol would qualify for the SAF tax credit under a pilot program that was recently launched by the Biden administration, according to Reuters.
Reuters looked at data from the USDA and determined that almost no U.S. corn farmers utilize all three of the farming practices — no-till farming, cover crops, and enhanced efficiency fertilizers — that would allow corn-based ethanol to qualify for a $1.25 per gallon tax credit that was included in the Inflation Reduction Act.
“The USDA does not collect data on how many farmers use all three required climate-friendly practices together, but data suggests the overlap is slim,” the report reads, going on to note that the no-till practice is used by 33% of cropland acres, efficient fertilizer application is used on 26%, and cover crops on about 6%.
