ADT Administrator Discusses Ag Data in Context of "45Z" Credits

Outsiders to agriculture often wonder about the alphabet soup of industry acronyms. Yet farmers also can need a decoder ring when it comes to understanding how tax code changes impact their operations and their ag data. Todd Janzen, founding partner of Janzen Schroeder Ag Law, serves as administrator for Ag Data Transparent, and is an expert on issues surrounding ag data.

He recently wrote a blog discussing one of the many market incentives in The Inflation Reduction Act (“IRA”) put in place to combat climate change . One of these incentives is the issuance of tax credits to renewable fuel producers, called “45Z credits” due to their location in Section 45 of the Internal Revenue Code. In theory, these 45Z credits should increase the price paid to farmers who supply raw materials (e.g. corn, soybeans) to renewal fuel producers. Whether that turns out to be true is not yet know, but Todd’s post explores how these credits impact data collection on the farm. 

Link here to read Todd’s post to learn what 45Z credits are, how 45Z credits trickle down to farmers and what data is required from farmers.