Minnesota ethanol plant helps farmers navigate 45Z tax credit changes

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An ethanol plant in southern Minnesota is working with corn farmers to understand how Clean Fuel tax credits can be mutually beneficial.

Highwater Ethanol CEO Brian Kletscher says they are hosting producer meetings about changes to 45Z once harvest wraps up.

“To help farmers get their CI score, their Carbon Index score. And we’re hopeful we can even go back to the 2026 grind year, so that would be corn produced in 2025. And that would maybe impact our Carbon Index score at Highwater.”

He tells Brownfield the ethanol plant in Lamberton qualified for a 20 -cent tax credit in 2025 and a 30-cent credit this year.

“And we need about 3 more points to qualify for 40-cents, and that’s going to come from the corn that producers are raising. It requires minimum till, (cover crops), just a number of different things. And we’re hoping we can get enough corn with that lower CI score to impact our score at Highwater.”

Kletscher says that will generate additional income for farmers delivering to the plant.

Kletscher made these comments earlier this month on Brownfield affiliate KNUJ’s Farm Forum.