Landus Creates New Premium Opportunities with Clean Fuel Regulation Initiative

Rhea-AI Summary

Landus has expanded its Clean Fuel Regulation (CFR) initiative, creating new premium opportunities for Iowa farmers in partnership with Verity. The program, which generated $750,000 in additional premiums for 2024 crop participants, allows farmers to enroll their 2025 soybean crop starting August 2025.

The company's sustainability programs have been highly successful, with Landus generating nearly $2 million in additional premiums for the 2024 crop. This includes $420,000 paid through their Carbon Intensity Supply Chain Program and $670,000 through their Carbon Ready Program, which rewards farmers for implementing regenerative practices with average payments of $20.08 per acre.

Positive

• Generated $750,000 in additional premiums for 2024 crop CFR participants
• Total of $2 million in sustainability program premiums generated in 2025
• Expected to quadruple premiums by next year
• Carbon Ready Program averaging $20.08 per acre in payments
• No limit on bushels that can be enrolled in the program

Negative

• Retroactive enrollment is not allowed
• Chain-of-custody documentation must be submitted by early October before delivery

Insights

Biofuel Industry Analyst

Landus' CFR program expansion strengthens Gevo's feedstock supply chain while validating the growing commercial value of sustainable agriculture.

Landus' expansion of their Clean Fuel Regulation (CFR) initiative represents an important development in the biofuel feedstock supply chain ecosystem relevant to Gevo's business model. The $750,000 in additional premiums paid to farmers for their 2024 crop demonstrates that sustainability credentials now carry tangible economic value in agricultural markets. More significant is the projection to quadruple these premiums next year, indicating rapidly growing demand for sustainability-documented feedstocks.

The partnership with Verity for digital tracking creates the chain-of-custody documentation essential for premium biofuel markets, addressing a critical challenge in biofuel sustainability certification. This aligns with regulatory trends demanding verified low-carbon feedstocks for next-generation biofuels, exactly what Gevo requires for its operations.

The nearly $2 million in sustainability premiums generated in 2025 across various programs signals meaningful market adoption. The Carbon Intensity Supply Chain Program ($420,000 to 40+ farmers) and Carbon Ready Program ($670,000 at $20.08 per acre) demonstrate that the economic incentives are sufficient to drive farmer participation in regenerative agriculture programs.

For Gevo, this represents a maturing supply chain infrastructure that could reduce feedstock acquisition challenges while ensuring regulatory compliance. The emphasis on both carbon intensity tracking and regenerative farming practices supports Gevo's positioning as a producer of truly sustainable advanced biofuels, potentially commanding premium pricing in low-carbon fuel standard markets.

Farmers can easily enroll their 2025 crop in the program starting in August

DES MOINES, Iowa, July 15, 2025 /PRNewswire/ -- Iowa farmers have a new market opportunity for their 2025 soybean crop. Landus is expanding its Clean Fuel Regulation (CFR) initiative, made possible by recent policy changes expected to increase Canada's demand for liquid biofuel. This initiative is in partnership with Verity, a digital platform built to track, trace, and validate sustainability attributes such as carbon data.

As of 2025, soy oil processed at the Ralston Landus location qualifies for this premium market with chain-of-custody documentation that begins with the farmer. This opportunity has resulted in approximately $750,000 in additional premiums for participants on their 2024 crop. Landus will begin distributing these premiums to participating farmers after the end of its fiscal year.

Enrollment for the 2025 soybean crop opens in August. Farmers must complete and sign a short harvester declaration, which takes just minutes and can be completed online, and deliver soybeans to Landus. Signed chain-of-custody documentation must be submitted by early October and prior to delivery. There is no limit to how many bushels can be enrolled, but retroactive enrollment is not allowed.

"The more farmers who participate, the greater our collective impact will be on farm profitability and the future of sustainable agriculture," says Craig Mouchka, Director of Sustainability at Landus. "We anticipate quadrupling premiums by this time next year and benefiting many more Iowa farmers."

The new CFR initiative is just one of the pathways Landus has created to help farmers profit from using regenerative practices. In 2025, Landus generated nearly $2 million in additional premiums by enrolling the 2024 crop in sustainability programs.

"These are more than just payments — they're proof that regenerative practices can generate real, measurable returns," says Mouchka. "We're proud to help farmers turn their regenerative practices into revenue while building a stronger, more resilient agriculture system."

Additional Information on Sustainability Program successes:

Carbon Intensity Supply Chain Program in partnership with Verity, Friona Industries, LP, and Hereford Ethanol Partners, LP

Landus paid $420,000 to more than 40 Iowa farmers who enrolled their 2024 crop in the first-of-its-kind Carbon Intensity (CI) Program. These farmers provided detailed data on their planting, harvesting, equipment use, and regenerative practices to help track the carbon intensity of corn feedstock through the supply chain. By submitting both physical and digital records, participants enabled Landus to generate credible CI scores, which differentiate the grain and qualify it for market premiums. This data-driven approach sets farmers' products apart in the marketplace and rewards them for transparency and regenerative practices.

Carbon Ready Program in partnership with Arva Intelligence

Landus paid more than $670,000 to more than 40 farmers who enrolled their 2024 crop in the Carbon Ready Program. These farmers implemented or maintained at least two regenerative practices, such as no-till farming, cover cropping, nutrient management, integrated pest management, and more. With average payments of $20.08 per acre, the program offers significant financial incentives for good stewardship of the land. With recent success, Landus expects the program to more than double in scale for the 2025 crop year.

To enroll or learn more about qualifying for sustainability program premiums, contact your Landus sales representative or visit landus.ag.

About Landus
Landus is a forward-thinking agriculture solutions company that keeps the farmer at the center of every decision we make. We connect thousands of farmer-owners with the world through grain, agronomy, and distribution, deploying traditional and nontraditional methods fueled by innovation and sustainability. Our $3 billion business touches 34 states and 16 countries. To learn more about Landus and the company's commitment to solving critical issues for the farmer of tomorrow, please visit: landus.ag.

About Verity
Verity Holdings, LLC, a wholly owned subsidiary of Gevo, Inc (NASDAQ: GEVO), is pioneering the ability to track, verify, and quantify carbon intensity across the entire carbon cycle. Through its proprietary digital MRV (Measure, Report, Verify) platform, which is powered by distributed ledger technology, Verity offers comprehensive carbon project development and accounting services. These services are designed to enhance the environmental value across entire business systems, maximizing the value of carbon and sustainability efforts at each stage. Verity is at the forefront of creating the ability to track, verify, and empirically value carbon intensity across the full carbon lifecycle.

About Arva
Arva Intelligence Corp (Arva) is a Houston-based organization powering agronomic optimization and environmental market solutions. By farmers, for farmers, Arva leverages primary field data to improve yield, lower cost, reduce risk, and maximize the value between environmental stewardship and economic profit. Arva is uniquely positioned to facilitate agriculture's crucial role in the global journey to profitable sustainability by providing a clear pathway for the supply and demand sides of the carbon and sustainability markets to interact, engage, and transact.

About Fiona Industries, LP
Founded in 1962 near Friona, Texas, Friona Industries LP has grown from a single feedyard into one of the largest cattle-feeding operations in the world. With eight state-of-the-art feedyards across the Texas Panhandle and southwest Kansas, the privately held company ranks as the second-largest cattle feeder in the U.S. Friona Industries is rooted in a vertically aligned, sustainable production system focused on delivering consistent, high-quality beef to retail markets nationwide.

About Hereford Ethanol Partners, LP
Hereford Ethanol Partners, L.P. is a wholly owned subsidiary of a privately held Texas investment group with a legacy in agriculture and energy infrastructure. As a partner company to Friona Industries, Hereford Ethanol reflects the group's long-standing commitment to sustainable innovation and operational excellence across the Texas Panhandle. Strategic investments in facility upgrades and carbon reduction initiatives have modernized the refinery, positioning it as a key contributor to the region's renewable energy efforts. Located just northeast of Hereford, Texas, the facility underwent significant refitting before resuming operations in 2021. With a production capacity of approximately 115 million gallons per year, Hereford Ethanol continues to strengthen the group's integrated approach to agriculture, energy, and environmental stewardship.

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SOURCE Landus

FAQ

What premiums did Landus offer for their 2024 sustainability programs?

Landus paid $750,000 for the CFR initiative, $420,000 through the Carbon Intensity Program, and $670,000 through the Carbon Ready Program, totaling nearly $2 million in premiums.

How can farmers enroll in Landus's 2025 Clean Fuel Regulation initiative?

Farmers can enroll starting in August 2025 by completing a short harvester declaration online and delivering soybeans to Landus. Chain-of-custody documentation must be submitted by early October before delivery.

What is the average payment per acre in Landus's Carbon Ready Program?

The Carbon Ready Program offers $20.08 per acre on average for farmers implementing at least two regenerative practices.

How many farmers participated in Landus's 2024 sustainability programs?

More than 40 farmers participated in the Carbon Intensity Program, and another 40+ farmers enrolled in the Carbon Ready Program.

What regenerative practices qualify for Landus's Carbon Ready Program?

Qualifying practices include no-till farming, cover cropping, nutrient management, and integrated pest management, with farmers needing to implement or maintain at least two practices.