Joco Today

U.S. Senator Roger Marshall, M.D. has introduced the Farmer First Fuel Incentives Act, a bipartisan and bicameral bill that seeks to restrict the eligibility of the 45Z Tax Credit to renewable fuels made from domestically sourced feedstocks. The legislation also aims to extend this tax credit for a full ten years. Co-led by Senator Sherrod Brown (D-OH), the bill has companion legislation in the House of Representatives introduced by Representatives Mann (R-KS-01) and Kaptur (D-OH-09). Senators Pete Ricketts (R-NE), Amy Klobuchar (D-MN), Deb Fischer (R-NE), Tammy Baldwin (D-WI), and Tina Smith (D-MN) have also cosponsored the legislation.

The proposed extension of the tax credit is intended to provide financial incentives for building infrastructure in the ethanol industry, reducing reliance on foreign fuel, opening new markets for farmers, and increasing ethanol production across the Midwest. However, concerns have been raised about potential flaws in 45Z that could result in U.S. taxpayers subsidizing foreign feedstocks like Chinese used cooking oil.

“It’s very tough in farm country with high interest rates and low commodity prices, which is exactly why we can’t have a tax policy that will lower commodity prices even more," said Senator Roger Marshall, M.D. "While we support free trade and open markets, we do not believe foreign feedstocks should be incentivized through the hard-earned dollars of U.S. taxpayers to the detriment of American farmers."

Senator Sherrod Brown echoed these sentiments: “American tax dollars should support American farmers – not imported feedstocks... Our bipartisan bill ensures these investments benefit Ohio farmers and Ohio energy producers.”

“In no world should American tax incentives benefit foreign producers,” added Congressman Tracey Mann. Congresswoman Marcy Kaptur emphasized that helping American farmers transcends state and party lines.

Kaleb Little from Kansas Soybean Association highlighted how Kansas soybean growers would benefit from this act: “The Farmer First Fuel Incentives Act ensures our Kansas soybean growers maintain access to this vital market sector going forward.”

Josh Roe from Kansas Corn Growers Association supported these efforts: “Companies have a right to import feedstocks from foreign countries, but those foreign producers should not receive tax credits funded by U.S. taxpayers.”

Other agricultural leaders including Adam York from Kansas Sorghum Producers and Kailee Tkacz Buller from NOPA commended this legislative effort as crucial for prioritizing domestic biofuel production over foreign alternatives.

Harold Wolle from NCGA expressed gratitude for leveling the playing field for America’s corn growers while Josh Gackle of ASA pointed out that biofuel production helps reduce greenhouse gas emissions while supporting economic independence.

Craig Meeker of National Sorghum Producers concluded that this act would stimulate economic growth across rural America by ensuring farmer-focused guidance in clean energy production.

Emily Skor of Growth Energy noted: “This important bill sends a strong signal that extending the 45Z credit is going to be a top, bipartisan priority... We applaud Senators Brown, Marshall, and all our rural champions.”

Prior to introducing this legislation, Senator Marshall led a bipartisan letter urging restrictions on 45Z eligibility solely for domestically-sourced feedstocks like Kansas soybean oil and corn oil. Similar letters were sent by various representatives and agricultural organizations including American Farm Bureau Federation and National Corn Growers Association.

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