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Trump's "big, beautiful bill" boosts biofuels industry, expands farmer safety net

Farmers are set to see a boost from the so-called "big, beautiful bill" that Congress cleared and President Trump signed into law last week.

That tax and spending package includes $66.4 billion in new money for programs assisting farmers, strengthening the safety net if there is significant volatility in crop prices and revenues. There are also enhancements to crop insurance. 

While the legislation rolls back climate friendly tax incentives established in the 2022 Inflation Reduction Act for wind and solar development, it extends the clean energy fuel production credit until 2029 — though the value of that credit is reduced. That supports sustainable aviation fuel, which can cut down on carbon emissions from air travel.

Rob Tate, who is on the board of the Minnesota Corn Growers Association and has a farm in Cannon Falls, said he gives the bill high marks for supporting agriculture. He said while he would have preferred a stand-alone Farm Bill — which hasn't passed since 2018 — the measure goes a long way in providing relief. 

"For all the provisions that are in that bill, I would have to give it an 'A.' There's really a lot of things that hit home to us," Tate said. 

Boosting production of sustainable aviation fuel is particularly exciting, he said, because it provides an emerging market to sell his crop. Some of the corn he grows is used to produce ethanol, which is blended with gasoline and available at gas stations across the country. 

And ethanol is an option for sustainable aviation fuel. The first plant doing so opened last year in Georgia, according to the U.S. Department of Energy. Minnesota is the fifth-largest ethanol producer in the country.

"We've talked about other alternatives for aviation fuel, which is great, but we have to be able to have a large volume to be able to supply the aviation industry," he said. "And corn and ethanol can do that, so I'm excited about the potential that's there."

But not everyone is pleased with the GOP-backed law that includes many signature pieces of Mr. Trump's second agenda for his second term. Cuts to Medicaid and food assistance have drawn fierce pushback. 

In a statement, the National Farmers Union said there are meaningful provisions in the bill to help farmers and ranchers and praised many of the same policies as Tate. But union president Rob Larew raised concerns with the changes to those welfare programs. 

"These gains are paired with harmful tradeoffs," Larew said. "Cuts to SNAP divide the farm bill coalition and reductions in Medicaid will have harmful effects on millions of Americans. Farm policy should unite us. This approach undermines the foundation of the farm bill and puts its future at risk."

He also called on Congress to pass a comprehensive farm policy bill, too. The process is supposed to happen every five years, but the Farm Bill is also the mechanism by which lawmakers reauthorize nutrition and food assistance programs. 

In 2023, the Minnesota Legislature approved its own tax credit for sustainable aviation fuel.

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