Policy Update: Terion's Role in New USDA Regenerative Agriculture Framework

By: Joan Abbott & Michael Browne

1. The Executive Order on Advancing Regenerative Agriculture connects the millions of acres already utilizing regenerative farming practices to premium biofuel markets.

The Executive Order directs the USDA to maximize funding for its Regenerative Pilot Program and to expand public-private partnerships, specifically through programs like the Environmental Quality Incentives Program (EQIP). The federal government has already invested $700 million into the Pilot, completing 67,000 whole-farm conservation plans across 49 million acres. With USDA data showing 68% of corn and 70% of soybean farmers already implementing at least one regenerative practice, Terion’s platform provides the required data infrastructure to streamline EQIP integration and transition these producers into biofuel feedstock markets.

2. In alignment with the Executive Order, the USDA’s New Regenerative Feedstock Rule and the proposed 45Z rules create a steep data compliance hurdle for biofuel plants.

The proposed Treasury regulations governing 45Z Clean Fuel Production Credit are built around five requirements:

• Included Crops: Corn, soybeans, sorghum, and spring canola.
• Field-Level CI Quantification: Requires precise, field-specific measurements rather than broad estimates.
• Mass Balance Chain-of-Custody: Ties CI attributes directly to the physical commodity.
• Auditing and Verification: Mandates third-party environmental and legal verification.
• Practice Standards: Clearly defines qualifying regenerative methods.

By mandating physical traceability (in this case, mass balance) over a book-and-claim chain of custody model, the proposed rule establishes “First Gathering Points” (country elevators) as primary compliance checkpoints. Terion’s technology manages this specific data burden for elevators, helping CI attributes remain intact through the commercial supply chain.

3. Terion removes this operational bottleneck by providing the digital infrastructure needed to turn field data into audit-ready documentation.

Meeting the USDA’s rigorous record keeping standards requires an integrated approach to data management.

4. Terion's offering is fully integrated with the new USDA Feedstock Carbon Intensity Calculator to help producers document CI scores that support their 45Z tax credit claims.

The USDA’s new Feedstock Carbon Intensity Calculator (FD-CIC) shifts from national averages to regionalized CI estimates based on Major Land Resource Areas (MLRAs). It explicitly rewards field-level practices like no-till, cover cropping, and optimized nutrient management. Because the FD-CIC relies on regional MLRA baselines, Terion’s hyper-local data collection allows high-performing farmers to document that their specific CI is better than the regional average, which can maximize their financial premium.

If you have more questions on audit readiness, or another topic, please reach out to our team.

This update is informational and not tax advice. Producers should consult their own advisors regarding 45Z eligibility and documentation.

‍

‍About Terion™

Formed by bringing together the expertise of CIBO Technologies and Indigo Ag's Source business, Terion is the leading digital infrastructure company for agriculture, connecting farmers, enterprises, and governments through a trusted intelligence layer that transforms how agricultural outcomes are measured, verified, optimized, and monetized. Terion enables verification, sustainability programs, enterprise compliance, and AI-powered decision-making at scale, helping stakeholders translate on-farm actions into measurable economic and environmental value. Part of the Flagship Pioneering ecosystem, Terion is building the digital backbone for the future of agriculture.

‍