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There are growers that can raise SAF Ethanol or Sustainable Aviation Fuel. You will need an agronomist for field inspection.
Exactrix® at Shelton, NE., with the new "Follow Me" technology
When Solar and Wind Green Ammonia goes into production locally other economic values are added. Producers can get the production going at an economic and profitable level of Green Play Ammonia.
All fertilizer types need to be banded in high uniformity. Fertilizer is like seed , needs to be banded into the soil to reduce GHG. Exactrix rates are typically applied at .5 the cost of Pivot applied nitrogen…and KTS is a nitrogen stabilizer in the band. There are presently about 4 million bushel of low carbon Corn that would apply along with Milo. We need wind and solar Ammonia to go the next level. The Green Ammonia product is about 1,800 miles away in Nova Scotia. Green Ammonia is planned at several locations across the US and Canada. Included is a good article on Nitrogen Stabilization. https://www.cropvitality.com/en/nitrification-inhibition A Podcast is included from No-till Farmer with Guy Swanson speaking.
Podcast… Mitchell Hora Shows producers how do it.
CARBON NEGATIVE. The corn Mitchell Hora no-tills in Washington, Iowa, has a carbon intensity score of -10. A negative score helps the ethanol plant offset its carbon footprint, and in the future, it could translate to a tax credit for the ethanol plant and additional income for Hora. Photo by: Mitchell Hora No-Tiller's 7 Takeaways from Updated GREET Model By Dan Crummett and Noah Newman posted on May 6, 2024 | Posted in Cover Crops, Soil Health No-tillers who are growing corn have an excellent opportunity to cash in on government demands to reduce the overall carbon intensity of the biofuels industry. The Inflation Reduction Act, passed in 2022, includes the 45Z tax credit to incentivize the production of clean fuel. Beginning Jan. 1, 2025, the new credit will reward renewable fuel producers for lowering the carbon intensity (CI) score of their fuel. The tax credit for the ethanol plants could mean additional income for no-tillers with low CI scores, as 40% of the U.S. corn crop goes into ethanol production. On April 30, 2024, the federal government released an updated version of the Greenhouse Gases, Regulated Emissions and Energy Use in Transportation (GREET) model, called the 40B SAF-GREET 2024 model, which is used to determine CI scores of sustainable aviation fuel (SAF) feedstocks. Washington, Iowa, no-tiller Mitchell Hora is the founder of Continuum Ag. The soil health data intelligence company developed software that automates the GREET model to calculate a farm’s CI score. Hora shares his 7 key takeaways from the updated GREET model: 1. Indirect Land Use Change (ILUC): “There was a huge unexpected positive outcome regarding ILUC in the IRS Rules. I was anticipating that the ILUC factor (historically 7.4CI points US corn-based ethanol) would go up by 5 points or worse. Luckily, this was not the case and corn-based ethanol shows a lot of promise in the future of sustainable fuels. 2. Feedstock Calculator: “Unfortunately, we haven’t seen an update to the GREET feedstock calculator. This absence raises concerns, especially considering its significance in quantifying the carbon intensity score of various feedstocks. While it’s disappointing, it highlights the urgency of advocating for its release before the implementation of 45Z. Our industry relies heavily on accurate data and tools, and the absence of an updated calculator presents a significant challenge that we must address collectively. “In lieu” of using the GREET feedstock calculator, the 40B rules used a ‘punt’ approach and are allocating a simple 10 CI point reduction for farms using cover crop, no-till, and enhanced efficiency fertilizer. They grant a 5 CI point reduction for soybean producers using cover crops and no-till. Hopefully 45Z will use the real CI reduction rather than this oversimplified approach.
WATCH: Mitchell Hora hosts a webinar about the updated 40B SAF-GREET model
for calculating CI 3. Definitions of Climate-Smart Ag Practices: “On a positive note, we’ve received clear definitions of climate-smart ag practices. While this doesn’t compensate for the lack of a feedstock calculator update, it provides valuable guidance for farmers. Cover crop, No-Till, and enhanced efficiency fertilizers are highlighted as key practices to be deemed climate smart.
4. Mass Balancing for Traceability: “The unexpected emphasis on traceability by the IRS caught many by surprise. However, the guidelines laid out provide a solid framework for ensuring the accountability of climate-smart grains in sustainable aviation fuel production. By tracking the movement of loads and maintaining detailed documentation, the traceability of climate-smart grains throughout the supply chain is ensured. Additionally, the requirement for each entity storing grain to conduct its own mass balance equation ensures transparency and accountability at every stage of the process. I need to learn a lot more in this arena, but the rules appear promising. 5. Restrictions on Stacking Carbon Outcome Programs: “Another unexpected development was the IRS’s stance on stacking carbon intensity programs with other carbon credit programs. While this may come as a disappointment to some, it clarifies the boundaries between different types of carbon initiatives. The IRS laid out a “farmer attestation” document (we anticipated needing one of these and have been working on it for months) but the farmer must also attest that they are not in any other carbon programs. Although it would have been nice to stack, I wasn’t confident the IRS would allow for it, now we have clarity. 6. Other CI-Reducing Pathways: “The 40B GREET model introduces various pathways for reducing carbon intensity beyond purchasing low-carbon feedstock. From carbon capture and storage (CCS) to utilizing renewable energy systems, there are numerous avenues available for reducing carbon intensity scores. While the impact of on-farm practices may not be as significant in this version of the GREET model, it highlights the importance of exploring diverse strategies to achieve carbon intensity reductions. This is the first time that the IRS is using the GREET model for tax credit purposes and the first time that the government is directly rewarding the noted soil health practices as part of their climate goals. 7. Preparation for 45Z: “As we navigate through the intricacies of the 40B rules and GREET updates, it’s important to keep our sights set on the implementation of 45Z. With its rollout coming soon, we must take proactive measures by knowing your CI Score and organizing/verifying your data to make sure the opportunity is maximized.” With 45Z, Hora believes corn growers have an unprecedented opportunity to share in what many would term an industrial tax credit windfall. “This is one of today’s biggest opportunities in ag — particularly conservation ag,” he says. “The folks with data — the agronomist, the team around each farmer — we all need to be working together with the folks at the biofuel facility to go after these credits together. Let’s maximize this opportunity and make certain we have an equitable share of those dollars throughout the ag supply chain, with farmers who are contributing getting paid their fair share.” The big influencers for lowering a crop’s CI include cover crop use, reduced tillage or No-Till, nitrogen fertilizer use, field-by-field yield figures, diesel fuel consumption throughout the crop’s season and overall energy use. These practices likely sound familiar to no-tillers using them to build soil health and lower costs — and an operation’s carbon footprint. “We need to document all of these practices to determine — and lower — our production CI score,” Hora says. “The better the score, the more you help the biofuel company meet its goals, the more credits it can earn, and the more money they could pass along to you. When an ethanol plant buys our family’s corn to produce ethanol, we are selling them carbon-negative corn, which offsets the plant’s carbon footprint. Now they are producing very low CI-score ethanol, which qualifies for the 45Z tax credit of $0.02 per gallon per CI point reduction.” The corn on Hora's family farm has a CI score of -10, which is likely worth $500 an acre growing 240-bushel yields. “That’s the total pie,” he says. “I’m not going to get $500 per acre, and the ethanol guy is not going to get $500 per acre. But if we aren’t willing to negotiate, neither of us will get anything.” At 250 bushels per acre, $500 indicates a “pie” of $2 per bushel, Hora says. “I don’t know what my cut is going to be,” he says. “I don’t think I should get 10 cents, and I don’t think I’m going to get $1.90, but it will be somewhere in the middle.” Related Content Low-Carbon Corn Could Yield Serious Cash for No-Tillers [Podcast] Carbon-Negative Corn, Weekly Soil Sampling & More with Mitchell Hora of Continuum Ag Continuum Ag's Billion Bushel Challenge Raises Awareness about Low-Carbon Corn
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your new banker, John Cory, Security West Financial. John will help you spend about $40,000 annually to make $150,000 more annually by spending only $60 per acre in irrigated production for fertilizer. John understands the cycles of agriculture and how to keep your balance sheet looking good. At the end of five years you will own a powerful machine that continue to produce good returns having already been paid for at the end of the first year. You can even apply for your neighbors with a Mustang Tool Bar. At 1,000 acres of corn, An internal bottom line savings of $750,000 over five years on 5,000 acres of corn. An Exactrix Mustang Tool Bar capable of producing $550,000 of internally available funds in five years.
www.exactrix.com
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