The USDA has announced a final Regenerative Feedstock Rule alongside a new executive order aimed at expanding regenerative agriculture through biofuel markets. The policy allows farmers who adopt regenerative practices—such as cover crops, reduced tillage, and improved nutrient management—to earn premium prices by linking their crops to lower-carbon biofuel supply chains.
The rule creates a framework for tracking and verifying “carbon intensity” at the field level for crops like corn, soybeans, sorghum, and canola, including traceability standards and auditing requirements. USDA also released a new calculator to help farmers measure the carbon impact of their practices and market their crops accordingly.
Officials say the initiative is designed to expand market opportunities, increase farmer profitability, and support energy independence while rewarding voluntary conservation practices. It builds on prior USDA programs investing hundreds of millions in regenerative farming adoption and conservation planning across tens of millions of acres.