New Opportunity to Monetize Your CI Score on the Farm with the Inflation Reduction Act

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Unlocking the Value of Your CI Score

Farming for the Future

Embracing a sustainable approach to farming, Kelly Garret, a farmer from west-central Iowa, is a pioneer in carbon-conscious agriculture. With 7,000 acres of no-till crops and a shift to utilizing regenerative wastewater as plant food, Garrett emphasizes collaboration with Mother Nature. His innovative practices have earned him the distinction of being the first farmer in the U.S. to sell carbon credits.

The Significance of Your CI Score

CI score, or Carbon Intensity score, is set to become a valuable asset for farmers, particularly with the introduction of the 45Z tax credit. This credit, scheduled to take effect on Jan. 1, 2025, will enhance the worth of your CI score, especially when your corn is supplied to ethanol plants. Each point below 50 on the CI score of an ethanol plant translates to a two-cent-per-gallon tax credit, a significant incentive for farmers.

Regenerative Roots Solutions

Recognizing the increasing importance of CI scores for ethanol plants, Kelly Garret joined forces with industry experts to establish Regenerative Roots Solutions. This initiative aims to educate farmers on optimizing their CI scores to benefit from forthcoming tax credits and CPG programs. By leveraging the expertise of the team, farmers can position themselves at the forefront of the evolving agricultural landscape.

Collaboration Between Farmers and Ethanol Plants

With the implementation of 45Z, the symbiotic relationship between farmers and ethanol plants becomes crucial. While the tax credits are accessible to ethanol plants, traceability of the corn supplied by farmers is essential to maximize the benefits. This partnership underscores the interdependence between both entities and the necessity of working together to achieve mutual success.

Seizing New Opportunities

The emergence of domestic demand and the evolving landscape of carbon markets present farmers with unprecedented opportunities to capitalize on their CI scores. Regenerative Roots Solutions aims to demystify the intricacies of these opportunities and empower growers with the knowledge needed to navigate this changing terrain. By embracing data-driven approaches and third-party verification, farmers can unlock the full potential of their CI scores.

The Path Forward

As farmers adapt to the paradigm shift in the agricultural sector, the future of CI scores and 45Z holds promise for those willing to embrace change. Educating farmers on sustainable practices that reduce their carbon intensity scores is paramount in ensuring long-term viability and profitability. By staying informed and proactive, farmers can position themselves for success without compromising their existing production methods.

Read More of this Story at – 2024-03-15 18:01:22

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