Illinois corn farmers are feeling the heat from the feds again, as a new model limiting the role of their crop in creating jet fuel could put a damper on a potential salvation for their industry. The Department of Treasury's update to the Argonne GREET model requires a raft of additional conservation practices for corn ethanol to qualify for lucrative tax credits, a move unsettling for growers who are already grappling with a push towards electric vehicles (EVs) and a resultant dip in ethanol demand.
According to the Illinois Corn Growers Association, yesterday’s tweak to the Department of Energy's model is a curveball for farmers. To access tax credits outlined in the Inflation Reduction Act (IRA), farmers now have to juggle cover cropping, minimized tillage, and nitrogen management practices "for their corn to qualify to make ethanol for the Sustainable Aviation Fuel market," a stipulation that "forces voluntary practices to become mandatory," said IL Corn Growers Association President Dave Rylander.
The ethanol industry in Illinois, home to the nation's second-largest corn production, has thrived due to its union with the renewable fuel sector. The GREET model's stringent requirements, which demand a total 50 percent reduction in GHG emissions, present a new hurdle for corn farmers who have already been through the wringer with trade wars, a global pandemic, and inflation, as per a Chicago Tribune article.
The recent EPA emissions rule has amplified worries about plummeting demand for ethanol, a concern echoed by Illinois corn farmer Reid Thompson, who, in a Chicago Tribune interview, said, "I mean, there’s got to be a home for our corn because that’s what we grow." The new stipulations cast a shadow on the already beleaguered sector, which faces not just a reduction in corn demand due to the rise of EVs but also the complexities of adjusting to the new conservation practices mandated for a slice of the sustainable fuel market.
As the quest for cleaner jet fuel ramps up and the federal government champions the creation of sustainable aviation fuel (SAF), the GREET model's changes brush up against the harsh reality that not all "clean" initiatives are easy to implement or immediately beneficial for those on the ground. As reported by the Illinois Corn Growers Association, Rylander's statement sums up the predicament, lamenting that the restrictions will "significantly reduce corn-ethanol’s availability for SAF production and limit availability of clean jet fuel in the short term."
