While many farmers may seek to receive passive income from 45Z by virtue of their naturally carbon-mild crop, intentionally reducing your Carbon Intensity (CI) Score is the only way to maximize the tax credit’s payout. The following are our top ten simple sustainable practices that you can implement today to achieve a lower CI Score:

1. Adopt No-Till Farming

No-till farming mitigates soil disturbance, which helps maintain soil structure, moisture, and organic matter.

Additionally, it 1) decreases erosion; 2) promotes soil carbon sequestration; and 3) lessens fuel use and machinery emissions.

2. Implement Cover Cropping

Planting cover crops during the off-season improves soil health and reduces erosion.

It also 1) adds organic matter to the soil; 2) facilitates nutrient cycling; and 3) enhances water infiltration and retention.

3. Use Precision Agriculture Techniques

Precision agriculture involves using technology to optimize field-level management regarding crop farming.

In turn, this means 1) reduced over-application of fertilizers and pesticides; 2) higher crop yields; and 3) minimized environmental impact.

4. Incorporate Agroforestry Practices

Agroforestry integrates trees and shrubs into crop and livestock systems.

Three direct benefits include 1) the restoration of biodiversity; 2) improved carbon sequestration; and 3) new additional income sources.

5. Optimize Nutrient Management

Efficient nutrient management involves synchronizing nutrient applications to crop needs.

Consequently, nutrient management 1) reduces greenhouse gas emissions from fertilizers; 2) prevents nutrient runoff and leaching; and 3) increased soil fertility and crop productivity.

6. Implement Crop Rotation and Diversification

Rotating different crops in and out of a field helps break pest cycles and improves soil health, thereby 1) bolstering soil structure and fertility; 2) reducing pest and disease pressure; and 3) fostering resilience against extreme weather.

7. Utilize Renewable Energy Sources

Incorporating renewable energy such as solar or wind power can significantly reduce a farm’s carbon footprint, as much of an operation’s emissions come from fossil-fueled heavy machinery. As the energy transition progresses and non-renewable resources dwindle, this switch can provide long-term cost savings.

8. Improve Water Management

Efficient irrigation systems and water management practices reduce water usage and improve crop yields.

9. Adopt Integrated Pest Management (IPM)

IPM focuses on combining biological, cultural, physical, and chemical tools to manage pests.

The primary effects of IPM can be summarized as the following: 1) reduced reliance on chemical pesticides; 2) enhanced ecosystem health; and 3) minimized environmental contamination.

10. Enhance Soil Health

Practices such as composting, mulching, and using organic amendments improve soil health.

Conclusion

Taking advantage of these practices can significantly lower your CI Score, boosting the longevity of your farming operations and maximizing your benefits under 45Z.

For more on the 45Z initiative and related subjects, stay tuned to 45z.org.