Producers received guidance for one federal tax credit but still wait for help on another. Two researchers look at the tough financial predicament in agriculture right now. And a seed pioneer from the Midwest moves down among the country’s wealthiest, despite increasing his estimated fortune.
SAF Guidance
Planning is tough when you don’t know all the rules. That has been the situation for producers if they want to claim the Sustainable Aviation Fuel 40B credit or the 45Z credit. Some information has arrived, and more is needed.
There is now information available on the SAF 40B credit from the U.S. Treasury Department. The short version: If you plan to use the 40BSAF-GREET 2024 model for sale or use of SAF qualified mixture ON or AFTER October 18th, 20224, then make sure that you use the latest (October 2024) version of that 40BSAF-GREET 2024 model.
The SAF credit ranges from $1.25 to $1.75 per gallon for the fuel.
What about the 45Z Clean Fuels Production credit? It is scheduled to begin when the calendar switches to 2025. That is only two plus months away now. The credit, established by the Inflation Reduction Act of 2022 during the Biden-Harris administration, starts at 20 cents per gallon for non-aviation fuels and 35 cents per gallon for SAF.
American Farmland Owner has found no new guidance on this credit yet.
Reality Check
Inflation has dropped considerably. The federal funds rate has dropped, which makes borrowing costs less expensive. And the Fed may drop the rate one or two more times before 2024 ends. But farmers, farmland investors, and economists all know the financial reality for many producers in agriculture: it is difficult and may remain that way for a while.
An increasing number of economists believe that the farm economy is already in recession or on the brink of recession. Input costs remain challenging for producers. Harvests for some crops may reach record levels, while prices remain too low. That math provides an unsteady financial foundation for many of the producers.
Seed Master
An octogenarian who started as a farmer in a small community outside Des Moines, Iowa, and later made a fortune breeding soybeans and corn remains the wealthiest person in the state. His estimated wealth increased over the past year but his ranking among the country’s wealthiest individuals fell. That is according to the newest Forbes 400 list.
Harry Stine’s wealth increased from $9.7 billion to $10.2 billion, according to Forbes’ estimates. But his rank in the top 400 has fallen from 76th to 98th among the richest people in the country.
RELATED: Here is the latest Forbes 400 list.
