Farm CPA Report

Farm CPA Report

USDA Releases Guidance for CI for Certain Farm Practices

USDA yesterday released a Carbon Intensity Calculator for certain Climate Smart Practices.

Paul Neiffer's avatar
Paul Neiffer
Jan 16, 2025
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Photo by Michael Kirsh on Unsplash

Yesterday, USDA released long awaited guidance on how the scoring of certain practices may affect a farmer’s carbon intensity score. This scoring is important to help determine the amount of tax credit a biofuel producer may receive under Section 45Z. But remember, the biofuel producer receives the credit, the farmer does not. The only way the farmer can participate is via a direct payment from the biofuel producer for having low carbon scoring crop.

USDA also released a calculator to determine the amount of reduction of CO2 by county in the US for corn, soybeans and sorghum production.

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