USDA to Release 45Z Feedstock Rule, New Feedstock Carbon Intensity Calculator

The USDA on June 25 announced its final Regenerative Feedstock Rule is ready for release. The action provides a voluntary pathway for farmers to capture value from regenerative agriculture practices via the 45Z clean fuel production credit.

The agency did not release the full rule on June 25, but indicated the final rule and related USDA Feedstock Carbon Intensity Calculator will be available on the USDA.gov website once it is published in the Federal Register.

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According to the USDA, the final Regenerative Feedstock Rule establishes a framework to connect regenerative agriculture practices to new markets within the biofuel supply chain for corn, soybeans, sorghum, and spring canola. These standards include:

• Covered biofuel feedstock crops and participating entities throughout the supply chain;
  
• Field-level quantification of crop-specific carbon intensity;
  
• Mass balance chain-of-custody standards, including traceability and recordkeeping;
  
• Auditing and verification requirements; and
  
• Regenerative agriculture practice standards for covered feedstock crops.
  

The updated USDA Feedstock Carbon Intensity Calculator (USDA FD-CIC) will help producers quantify regenerative practices such as cover crops, and improved nutrient management, and conservation tillage—including no-till and reduced tillage. Producers can use the resulting reports when marketing eligible feedstocks to participating biofuel producers.

The USDA indicated the new framework will create significant opportunities for America’s leading biofuel feedstock producers. American farmers currently produce approximately 6 billion bushels of corn used annually for ethanol production, with 68% of corn farmers already implementing at least one regenerative practice. Likewise, producers grow approximately 1.8 billion bushels of soybeans for biofuel production, while 70% of soybean farmers already utilize at least one regenerative practice. As participation grows, USDA expects the rule to expand premium market opportunities for producers across the country.

In conjunction with the USDA’s announcement, President Donald Trump signed an executive order advancing regenerative agriculture. The order directs the USDA to expand the reach of its Regenerative Agriculture Pilot Program, broadly share results with stakeholders, and create public-private partnerships in order to increase capacity for farmers interested in adopting regenerative farming practices.

The USDA’s Regenerative Pilot Program, launched in December 2025, provided $700 million to help American farmers adopt practices that improve soil health, enhance water quality, and boost long-term productivity, all while strengthening America’s food and fiber supply. Under the pilot, USDA has already completed over 67,000 whole farm conservation plans, covering more than 49 million acres and over 1,500 conservation contracts worth more than $200 million.