Mitchell Hora: 45Z Credits Will Lead to Surge in Carbon Awareness

While members of Congress, lobby groups, and impacted Americans argued over the ramifications of the so-called “Big Beautiful Bill Act,” Mitchell Hora was making plans…and feeling optimistic.

“It’s a big deal,” Hora told American Farmland Owner from his office in Washington, Iowa. Hora is the founder and CEO of Continuum Ag, an agricultural consulting company that prioritizes improving soil health for fellow farmers.

Part of the company’s focus is decreasing the carbon footprint on farms across the country.

Mitchell Hora bio:

• Seventh generation farmer – Washington County, Iowa

• Continuum Ag – Founder/CEO

• SR Management – Owner

• June 2025 Iowa Small Business of the Week – Designation by U.S. Senator Joni Ernst

How the 45Z Tax Credit Is Reshaping Sustainable Agriculture

At its core, Section 45Z is part of the Inflation Reduction Act and provides performance-based tax credits for clean fuel production based on its carbon intensity (CI). The Inflation Reduction Act was a signature piece of legislation under the Joe Biden presidential administration. Hora knew to anticipate lengthy debate once Republicans took over Washington, D.C., with Donald Trump returning as president and the party holding majority control over both chambers of Congress.

45Z was originally slated to run from 2025 to 2027. Extending it to 2029 gives producers, farmers, and infrastructure developers valuable runway to scale up and provide what they hope will be measurable environmental benefits.

“Of course, the longer the better,” Hora said. “It allows us to get our ducks in a row, actually create some value, get things more stable…versus it just being, you know, done in 2027.”

The extension gives Continuum Ag and others in the value chain critical time to plan and invest in bigger infrastructure, like carbon capture systems and biofuel production facilities.

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“That’s where it helps to have a longer time frame,” Hora added. “From Continuum's side, we already have the infrastructure built. We’ve been sitting ready to go, and we're just waiting.”

RELATED: This Montana farmer and solar company owner has been actively working to convince Congress not to end incentives that helped his industry grow.

But the implications go far beyond tech companies and ethanol plants. For farmers, the stakes are equally significant, he believes.

“The key thing for the farmers, I think, is just stability and knowing what’s going to happen,” Hora emphasized. “And it looks like we’re finally going to get that.”

That certainty allows farmers to take advantage of the massive financial potential offered by 45Z. Hora laid out the numbers that he thinks add up to promising potential.

Leading the Carbon Farming Movement

Hora said that Continuum Ag has already scored 360 million bushels of U.S. corn with an average carbon intensity score of 11.5, compared to the industry standard of 29.1. That equals a 60% reduction in carbon footprint. His own farm scored as low as 2.6. Some farmers' soybean scores were as low as -19, meaning they are carbon negative.

So, what does that translate to in dollars? According to Hora, “That’s worth about a dollar and two cents per bushel in total 45Z value. Then the farmer is going to get a portion of that. The ethanol plant’s going to get a portion of that. There’s some cost, of course, in generating all this, but...there’s plenty of pie to be split up.”

Why 45Z Could Mean Billions for Farmers and the Rural Economy

Hora estimates that if even six billion bushels of corn qualify at that rate, that is $6 billion a year returning to the ag economy. Under maximum conditions, that could grow to $23 billion annually, though Hora is quick to say that’s an unlikely high-end estimate.

But the real takeaway is that the 45Z program creates new incentives based on measurable practices, empowering farmers to choose how they reduce emissions and get paid accordingly.

“You get to choose field by field what practices work best for you,” Hora explained. “Get your data managed now, because it’s absolutely going to be an early bird gets the worm opportunity.”

And the ripple effects go far beyond American corn and soybeans. Hora believes that 45Z could reshape global agriculture.

“We’re setting a precedent here...how to quantify, verify, track, and monetize the carbon footprint of a farm. That precedent can be used for animal ag, for international supply chains, and beyond,” he said.

RELATED: Carbon capture credits could be worth hundreds of millions, or perhaps billions, to one company looking to build a pipeline across five states.

Hora compares it to existing carbon programs, which might earn a farmer $15–20 per acre. But with 45Z?

“That’s $200 an acre if you’re getting a dollar a bushel on 100-bushel corn. And even if the farmer only gets a share of that, it kicks the shorts off the existing carbon programs,” Hora said.

Bottom line? The 45Z extension isn't just a tax credit. It could be a catalyst for environmental accountability, infrastructure investment, and rural revitalization, Hora maintains.

“Let’s make hay while the sun shines,” Hora said. “We’ve got a scalable, amazing story to tell…not only about decarbonizing but investing back in our rural communities and actually doing good with policy.”