USDA Expands Regenerative Agriculture Pilot Program to $1 Billion

The U.S. Department of Agriculture (USDA) announced it is increasing financial assistance for its Regenerative Pilot Program from $700 million to $1 billion for fiscal year 2027. Administered through USDA’s Natural Resources Conservation Service (NRCS), the voluntary program provides financial and technical assistance to help farmers and ranchers implement whole-farm conservation systems focused on soil health, water management and long-term agricultural resilience. For FY2027, USDA will provide $650 million through the Environmental Quality Incentives Program (EQIP) and $350 million through the Conservation Stewardship Program (CSP). USDA also announced changes intended to give states and producers greater flexibility, including allowing State Technical Advisory Committees to identify additional conservation practices that address local production systems and resource concerns. Producers can apply through their local NRCS Service Center by their state’s applicable ranking dates. 

Read the press release from the USDA: https://bit.ly/4ADasmu

Biofuels Tax Credit - Updated Guidance and GREET Model Released

On September 9, the IRS issued an updated notice for the 45Z Clean Fuels Production Credit. The IRS notice allows for carbon intensity adjustments and enhanced 45Z tax credits for 2025 and 2026 for feedstocks produced using regenerative agriculture practices. At the same time, the U.S. Department of Energy and Argonne National Labs (ANL) released an updated 45ZCF-GREET model.  

The 45ZCF-GREET model is used to determine carbon intensity scores of fuels and feedstocks and subsequent 45Z ax credit values. The 45ZCF-GREET model was first released in January 2025 and was most recently updated in June 2026. The US Canola Association (USCA) will be working with ANL to have improved canola data derived from our recent grower survey incorporated into the next GREET model updates. 

A notable addition to the 45ZCF-GREET model in this update is the inclusion of a new module (45ZCF FD-CIC module) that enables renewable fuel producers to calculate carbon intensity adjustments for feedstocks produced using regenerative agricultural practices. The USDA Feedstock Carbon Intensity Calculator (USDA FD-CIC) module is currently limited to spring canola and USCA continues to work with USDA to include all canola production. The FD-CIC module includes the use of cover crops, tillage practices, application of nitrification inhibitors, and application of manure as regenerative agricultural practices for U.S.-grown corn, sorghum, soybeans, and spring canola. 

The USDA published a beta version of the FD-CIC in January 2025, which initially did not include any canola. In June 2026, USDA published an updated version of the FD-CIC, which includes spring canola. 

View the IRS Notice: https://bit.ly/4hlXDWm

View the DOE 45ZCF-GREET User Manual: https://bit.ly/4hmuQ3N

Administration Expands Small Refinery Exemptions 

In early September, the EPA released its decision on Small Refinery Exemptions (SREs), allowing an additional 770 million SREs and bringing the total to 1.76 billion RINs. This is higher than the 990 million estimated in the RFS rule issued in March, but less than what was reportedly being considered. To mitigate the impact to the biofuels and agriculture sectors, the Administration will reallocate 100% of the 770 million additional SRE RINs. USCA and the biofuels industry strongly advocate that any SREs provided be fully reallocated. Prior to the announcement, the US Canola Association expressed concern with reports that EPA was contemplating waiving an additional 1.8 billion RINs of the 2025 Renewable Fuel Standard (RFS) compliance obligation through SREs. Additional SREs, especially if not reallocated, undermine canola markets after farmers have invested in a higher 2026 crop.

Farm Bill Passes Senate Ag Committee



On September 16, the Senate Ag Committee was able to pass the Farm Bill out of committee on a partisan 12-11 vote. No amendments were considered during this committee session, just the vote to report the bill out of committee. When or if it gets scheduled for consideration by the full Senate is uncertain, but it won’t be before the November elections. It will need bipartisan support (60 votes) to pass the full Senate, and that will likely be contingent on a deal being reached during the Lame Duck session with Democrats on implementation of SNAP changes. 

Trade Issues Escalated with Canada

President Trump escalated trade actions against Canada, signing proclamations on September 9 that ban certain Canadian imports, including alcoholic beverages, effective September 29. The move follows Canada's retaliatory tariffs and replaces existing 50% duties on those products. So far, the import bans and tariffs have not been imposed on Canadian canola imports to the United States.

EPA and U.S. Army Corps of Engineers Issue Supplemental Notice on WOTUS

On September 4, the EPA and the U.S. Army Corps of Engineers issued a notice to supplement and seek additional comment on aspects of the Proposed Rule that was published in November 2025 to revise the regulations defining the scope of waters covered under the Clean Water Act in light of the U.S. Supreme Court’s 2023 decision in Sackett v. EPA. The Proposed Rule is intended to provide greater regulatory certainty by clarifying the definition of “waters of the United States.” The September 4 supplemental notice seeks to gather input on additional regulatory alternatives that they will consider alongside the 2025 proposed rule. The supplemental notice includes a 30-day public comment period ending October 9.

The notice can be viewed here: https://bit.ly/4ddLTTn

USCA Comments on EPA Desiccation Innovation Challenge

EPA is seeking input on alternatives to conventional chemical desiccation, a preharvest tool growers rely on to dry down canola evenly. Given that canola's uneven pod maturity can lead to significant yield loss, USCA submitted comments urging EPA to recognize desiccation's role as an essential tool for growers, and to fund canola-specific research and evaluate any alternatives against real-world yield, quality, and harvest-efficiency benchmarks.

View the full notice: https://bit.ly/4z8L0UD

USDA Announces Plan to Modernize Data Collection and NASS Launches AgInsights

USDA's plan to modernize data collection is built around the following four pillars:

• Modernize the Data Reporting Experience: USDA said it will expand use of administrative data, improve mobile access to surveys, explore opportunities to use prefilled information where appropriate, and strengthen coordination across USDA. These changes are intended to reduce duplicative requests and limit the amount of time producers spend reporting information.

• Enhance Acreage and Yield Estimation: USDA said it will conduct a pilot to evaluate the use of improved satellite imagery, geospatial tools, crop models, and other emerging technologies combined with producer-reported information to enhance acreage and yield estimations. USDA will also assess the use of optional field inputs to enhance and ground-truth yield estimates and continue advancing yield research through collaboration with agricultural partners and land-grant universities.

• Integrate Data and Technology Platforms: USDA said it will modernize its technology infrastructure, expand secure data-sharing capabilities, and evaluate the responsible use of tools such as artificial intelligence and machine learning.

• Expand Trust and Transparency with Producers: USDA said it will protect producer privacy, clearly explain why it requests information and how it uses it, and create additional opportunities for producers to provide feedback. USDA said it will also improve communication surrounding reports, methodologies, response rates, and data limitations.

On September 16, the USDA’s National Agricultural Statistics Service (NASS) launched AgInsights, a new data dissemination tool that will serve as a key component of NASS’s ongoing modernization strategy. Designed to enhance existing data products and services, the AgInsights application offers streamlined information dissemination, increased operational efficiency, and a more dynamic, interactive experience, making it easier for producers to navigate and access the latest agricultural data.

The AgInsights tool can be found at: aginsights.nass.usda.gov

USDA's 2026 Farm Income and Expenses Outlook