Missouri Soybean Farmers Oppose 45Z Tax Credit Plan

By Blake Jackson

Missouri Soybean Association (MSA) Policy Chairman Ryan Wilson has expressed concern regarding the Senate Finance Committee’s proposed language for the Section 45Z clean fuel production tax credit.

While recent announcements from the Environmental Protection Agency (EPA) offered optimism for soybean farmers, the new tax credit framework raises significant red flags.

“Missouri soybean farmers were encouraged by last week’s EPA announcement supporting increased domestic biofuel volumes,” said Wilson.

“The move was a clear signal that American-grown fuels are critical to our energy future and it delivered real momentum to rural economies and farmgate prices.”

Wilson criticized the Senate proposal for allowing imported feedstocks, including used cooking oil from China, to qualify for up to 80% of the tax credit’s value. He argued that this approach undermines U.S. farmers and misdirects support meant for domestic agriculture.

“That’s why the proposed language released by the Senate Finance Committee for the 45Z tax credit is deeply disappointing,” Wilson continued.

“Allowing foreign feedstocks, like imported used cooking oil from China, to qualify for U.S. tax incentives up to 80% of the value of the tax credit is out of step with the Trump administration’s agenda. The Senate Finance Committee’s approach shifts taxpayer dollars away from Missouri farmers and into the pockets of foreign suppliers.”

With farmers already facing economic challenges from inflation and falling crop prices, Wilson stressed the importance of investing in American biofuels.

“At a time when Missouri farm families are facing lower commodity prices, inflation and uncertainty, we should be strengthening our investment in American-grown fuels not subsidizing foreign competition, said Wilson.

"Missouri soybean farmers need more than symbolic wins we need strong, enforceable policies that prioritize homegrown feedstocks and delivers on the promise of rural investment. We urge Missouri’s congressional delegation to ensure that the final version of the 45Z tax credit puts American producers first.”

Missouri remains a leading state in biodiesel production, using about 1.5 billion pounds of soybean oil in 2024.

Photo Credit: missouri-soybeans