Iowa soybean farmers and biofuel advocates welcomed new proposed guidance from the U.S. Department of the Treasury earlier this week on the Section 45Z Clean Fuel Production Credit. According to the Iowa Soybean Association (ISA), the updated guidance reflects improvements made under legislation passed in July 2025 and prioritizes domestic feedstocks, including U.S. soybeans. The most notable change disqualifies feedstocks imported from outside North America, a move supporters say protects American farmers and processors. ISA President Tom Adam says, “Soybean farmers have long supported updates to federal biofuel policies that prioritize soy-based fuels, which also help build domestic markets for the crops we produce. This long-awaited guidance will help support Iowa’s soybean farmers, processors, and biofuel producers, while providing a dose of much-needed certainty heading into the spring planting season.” Iowa is the nation’s leading biodiesel-producing state and soybean oil producer, and in 2025, the state used 1.68 billion pounds of soybean oil to produce 224.5 million gallons of biodiesel, which accounts for nearly a quarter of Iowa’s annual soybean harvest. A 2024 study estimated that biodiesel contributes $2.2 billion to Iowa’s economy. U.S. Sen. Joni Ernst (R-Iowa) also praised the Trump administration’s action, saying it brings clarity for farmers and renewable fuel producers. She continues to push for extensions for the 45Z credit through 2029 and year-round, nationwide E15 availability.
Iowa Farmers Celebrate Guidance From U.S. Treasury On Fuel Production Credits
