Iowa farmers have a new opportunity to add value to their soybean crop as Landus expands its Clean Fuel Regulation program, linking renewable fuel incentives in Canada directly back to U.S. growers.
Landus Director of Commercial Operations Blake Hoover said Canada’s renewable diesel tax incentive has created a chain reaction throughout the supply chain.
“That tax incentive goes from the end fuel user and works its way back through the renewable fuels producer to the feedstock producer, which is where Landus would sit. And with Landus connected directly to the grower, it’s a full chain of custody,” Hoover explained.
Flexible enrollment for new-crop soybeans
The program, which covers new-crop soybeans, comes with a soft enrollment deadline of September 15. Hoover emphasized the flexibility for producers.
“This is not the type of program where you’re signing up bushels that have to come to us from a certain field. This is truly an opportunity to enroll in a program that covers their whole crop — but it’s not a contract,” he said.
Premiums tied to participation and market dynamics
Craig Mouchka, Landus Director of Sustainability, said premium levels will be determined by participation scale and market conditions.
“It’s an ebbing and flowing market on the premium side as well, so at the end of the year we’re able to tally that up and distribute it back out to those who participated,” Mouchka noted.
Tangible payouts for growers
In 2024, the Clean Fuel Regulation program returned $750,000 in premiums to participating farmers. Landus officials expect even stronger growth in payouts this year as more producers take part and demand for renewable fuels continues to climb.
