Backstabbing the Ethanol Industry

by David Kruse (The Daily Reporter) I was told by a director of the Iowa Corn Growers that at a meeting they discussed my recent reports where I had noted that the National Corn Growers Association is dropping the ball in pushing back against President Donald Trump personally on renewable identification number waivers. He said that there were no objections there to my challenge. During their meeting, they found out that Trump had approved five more requests from refiners for RIN waivers, totaling another 350 million gallons. That is 2.6 billion gallons in total RIN obligations now waived by the Trump Environmental Protection Agency. With 19 more waiver requests, that number should grow.

The director, a Trump supporter, said that he felt like he was slugged in the gut by the announcement of more RIN waivers. I asked if they were going to start calling them "Trump RIN waivers" and got no commitment — they are afraid of challenging him personally. Trump uses fear effectively, in fact counts on it. The new RIN waivers issued will just about equally match the benefit of the E15 vapor waiver expected this year. So, he permits E15 summer use which the NCGA cheers about and then takes all of the benefit of E15 away by responding to the petroleum industry request for more RIN waivers. That way he can claim to love both farmers and oilmen, but who does he love more?

The 2.6 billion gallons of RIN waivers granted refiners by Trump weigh heavily that he loves oilmen more.

That means that the price of not blending ethanol fell by 75 percent because of the waivers. Additional modifications were being made to the RIN market at the behest of refiners. This lost ethanol demand killed the ethanol market, eliminated plant margins and idled ethanol plants. This was all done at the behest of Trump.

When RINS were waived last year, the Corn Growers, and may I include the Iowa RFA, focused criticism on Scott Pruitt who then left. By not putting responsibility for the RIN waivers on Trump they essentially gave him cover to continue to say how much he loved ethanol and farmers despite doing the most damage to the RFS ever.

Iowa Sens. Chuck Grassley and Joni Ernst have been all we have defending us in Washington, and they were rolled by Trump on ethanol policy too.

Actually, I believe they knew what was happening and chose party first over their constituents.

If the trade deal with China comes off as touted, China should buy U.S. ethanol, putting it in their shopping cart of commodities. Trump RFS policy made that ethanol cheap.

He is playing the Corn Growers and RFA like a fiddle, and they keep dancing to whatever tune he plays no matter how many times he punches them in the gut. READ MORE

Excerpt from The Daily Reporter: Vermont Sen. Bernie Sanders is running for president in Iowa sounding like he would appoint Ben and Jerry's (ice cream founders) to be his secretaries of agriculture. The Register reported that Bernie "attacks factory farming, big agribusiness." What that unfortunately often means is he is describing anyone who is making any money from agriculture. To be politically acceptable to democratic socialists, everything is supposed to be small and low scale, and the margins are just not there to make a living from that. If farmers adopt technology or pray tell GMOs, they would label that food with skull and crossbones on it if they could. The organic industry brand promotion is built on the degradation of commercial food quality and safety.

I measure productivity in terms of inputs per bushel produced and farmers use markedly less fertilizer and chemicals per unit of production than any other system with the most affordable food anywhere in the world. U.S. consumers enjoy the most affordable safe high-quality food in the world and instead, the Sanders types impugn farmer's commercial reputations and even their personal character. Attacking “factory farms” or “big ag” has become another instance of practicing identity politics.

"Factory farming" of livestock is simply the utilization of technology to produce quality meats at affordable costs while practicing suitable sustainable animal husbandry. CAFO is not four-letter word. It is most often a family farm of a scale where the family can attain a sustainable living. That is why Dr. Temple Grandin was such a popular speaker at our annual Clay County Fair client appreciation event last fall. She has helped food supply chains sort out acceptable animal husbandry practices that can work for all.

The livestock industry has embraced sustainable livestock husbandry practices. My family has a cattle feedlot that is a CAFO that I am very proud of. They are excellent caretakers of the cattle where the lots in my opinion often resemble an FFA project where the cattle are kept comfortable. The cattle operation is integrated into the corn production limiting the use of commercial fertilizer to reduced levels of nitrogen and starter. To me, I do not how you would be more sustainable but they are working hard every day to figure that out. Sanders has never been there but I think he would be invited (have to talk to my brother-in-law). I think he would learn something ... because as a general statement, Sanders is ignorant on commercial agriculture.

Storm Lake Times Editor Art Cullen is a progressive who correctly says that the Democrats lose because they do not interact with rural areas. They think Iowa City, where Sanders spoke, is rural America and they do not have a clue how people think in Storm Lake because they never visit.

As far as DeBlasio thinking the money is in the wrong hands and it is government's job to redistribute the wealth ... that is socialist bunk. It is the government's job to referee so the rules are fair and equal. Sometimes the rules do favor the wealthy and that is just as wrong as rules that penalize them for working hard and earning a living. Sanders wants a $15 minimum wage. If he was paying attention he would find that livestock packing and meat processing companies are all paying starting wages well above $15 hour. Sanders obviously thinks that $15 hour is a good fair starting wage. Then come to Iowa and get a job here as they are all hiring. READ MORE