USDA Unveils Final Regenerative Feedstock Rule for Biofuel Supply Chain

On June 25, the U.S. Department of Agriculture (USDA) announced that its final Regenerative Feedstock Rule is ready for publication, creating a voluntary pathway for farmers to benefit from the 45Z Clean Fuel Production Credit through regenerative agriculture practices.

The new rule establishes a framework covering corn, soybeans, sorghum, and spring canola used as biofuel feedstocks. It introduces field-level carbon intensity (CI) accounting, mass balance traceability, recordkeeping, auditing, verification requirements, and standards for regenerative farming practices. Alongside the rule, USDA will release an updated Feedstock Carbon Intensity Calculator (FD-CIC), enabling farmers to quantify emission reductions from practices such as cover cropping, conservation tillage, no-till farming, and improved nutrient management. The resulting reports can be used to market eligible feedstocks to participating biofuel producers.

According to USDA, approximately 68% of U.S. corn farmers and 70% of soybean farmers already employ at least one regenerative practice, creating significant opportunities for low-carbon feedstock premiums.

The announcement coincided with President Donald Trump signing an executive order to expand USDA’s Regenerative Agriculture Pilot Program, strengthen public-private partnerships, and accelerate adoption of regenerative farming nationwide. Since its launch in December 2025, the $700 million program has supported more than 67,000 conservation plans covering over 49 million acres, reinforcing the role of regenerative agriculture in supporting the growth of the U.S. biofuels industry.