Fueling an America-first energy future for Iowa’s farmers

Being a farmer in Iowa is no easy feat, and the last few years have presented new challenges. The value of Iowa farms was down 3.1% last year due to lower crop prices, increased interest rates, and high labor and supply costs.

If we don’t change course, this will have community-wide effects on the entire ag economy—in Iowa and across the country. Thankfully, supportive federal policy for sustainable aviation fuel (SAF) production could provide farmers like me new opportunities to stay in the game.

The 45Z production tax credit is critical to putting American energy production and farmers first. It will help SAF producers establish new markets for farmers to sell their sustainably produced crops, rewarding farmers for their investments in regenerative agriculture. For example, when farmers sell their crops as feedstocks to SAF producers, they can expect to earn up to an additional 20 cents per bushel of sustainably grown corn.

Many farmers, including myself, have adopted cutting-edge practices and technologies that allow us to efficiently and sustainably produce more crops per acre while also growing our bottom line. The market incentive to adopt these practices is clear and compelling: beyond the sizable market demand for sequestering carbon, these practices save us valuable time and money relative to more traditional methods.

By leveraging practices like low- or no-till farming systems, improved fertilizer management, and conservation crop rotation, farmers can improve crop and soil health while increasing efficiencies and profitability. This means that even amidst volatile growing conditions, farms are prepared to withstand shock and remain economically viable.

The U.S. House of Representatives, thanks to the leadership of the Iowa delegation, included a provision in its budget bill to extend the 45Z credit through 2031. This is critical to putting America first and securing new opportunities for Iowa farmers. Farmers across the country applaud the House for its support of this credit and urge the Senate to ensure this provision becomes law. Securing this extension would not only allow SAF producers to attract and sustain the financing needed to scale the next generation of aviation fuel. It would also ensure this nascent industry can thrive and support American energy security.

These practices are the future of farming—providing farmers with an economic and environmental edge. In 2023 alone, Iowan farmers earned more than$9.5 billion by selling corn as feedstock to biofuel producers.

American farmers are ready to deliver wins for America and strengthen our domestic energy security, but we need these markets for biofuels like SAF to grow and thrive. These fuels are ready to be used today in existing aircraft and airport fueling infrastructure, simplifying adoption. By helping to launch this nascent industry, policymakers can give American biofuel producers and aviation the competitive edge needed to win on a global stage.

As a third-generation farmer in Iowa, it's essential to find new demand, like SAF, for our corn. Thanks to technological advances and sound farming practices, we continue to raise more corn on fewer acres of land with fewer fertilizer inputs. My son, a fourth-generation farmer on this land, is now farming with me, and it is paramount that we find new markets to use the higher production that we are realizing. Without new markets like SAF, it will be difficult to sustain the next generation in our operation.

We are on the cusp of an energy revolution driven by Iowa farmers and biofuel producers. As Congress acts on required tax legislation this year, it is critical it implements and extends the 45Z credit in that package. Representatives Randy Feenstra, Mariannette Miller-Meeks, Ashley Hinson, and Zach Nunn have done their due diligence on the 45Z extension. With continued support from Senator Joni Ernst and Senator Chuck Grassley, Iowa can remain an energy leader while creating new opportunities for our farmers and bolstering our local communities.

Dan Kietzer is a farmer from Mediapolis, Iowa, and is the Director of Iowa Corn Growers Association District 9.