GOP Sprint to the Iowa Caucuses: An Ag Primer to the 2024 GOP Presidential Primary Season

January 02, 2024

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by Chris Clayton (DTN Progressive Farmer) Iowa farmers again have won over most of the leading Republican candidates for president when it comes to biofuels, but farmers also likely will again be caught in the crossfire between saber-rattling with China while the 2024 presidential race plays out.

Iowa Republicans will go to the caucuses on Jan. 15 with the possibility that the Republican nomination could be decided as early as "Super Tuesday" on March 5.

Polls indicate former President Donald Trump has all but locked down the state with more than a 30-point lead over his closest rivals. The race is really for second place in Iowa, largely between Florida Gov. Ron DeSantis and former United Nations Ambassador Nikki Haley. She also is the former governor of South Carolina.

The race appears closer in New Hampshire which has its primary Jan. 23. In New Hampshire, Trump has as much as a 19-point lead, but at least one recent poll also put Haley significantly closer.

Haley also has a great deal riding on the Feb. 24 primary in her home state of South Carolina where polls still show Trump with a wide lead. Most major political figures in the state, including Sen. Lindsey Graham, back Trump.

The early states also will show whether DeSantis, 45, is still the potential successor to Trump on the right. DeSantis is backed by Iowa Gov. Kim Reynolds, a situation that has irked Trump. The former president's campaign in mid-December launched ads showing brief clips of Reynolds praising Trump. Reynolds and Trump have since traded barbs over whether she's an unpopular governor or not.

A few issues specific to agriculture include biofuels, policies on China and trade, as well as border security and agricultural guest workers.

CHECKING THE BIOFUELS BOXES

As part of Trump's push to show support for farmers, he came to Iowa in May 2019 and signed an executive order allowing year-round E15. EPA defines E15 as gasoline blended with 10.5% to 15% ethanol. The order was tossed out in court -- and states are still fighting to get E15 year-round. https://www.dtnpf.com/…

While in Congress, DeSantis cosponsored a bill in 2017 that would have ended the Renewable Fuels Standard (RFS) program.

Still, the Iowa Corn Growers Association (ICGA) and another Iowa group, Biofuels Vision, sent out press releases in recent weeks stating, "Gov. Ron DeSantis is the only candidate to date that has taken a positive position on all eight topics vital to the future of Iowa farmers and biofuels producers." DeSantis had done a question-and-answer session at a POET-owned plant in Menlo, Iowa, the day before the Dec. 19 release.

"Iowa's corn farmers appreciate Gov. Ron DeSantis' recognition of ethanol and its value to Iowa as a sustainable, homegrown fuel option," said Jolene Riessen, a farmer from Ida Grove and president of ICGA. "In Iowa, we think about the four E's of ethanol: economy, environment, energy security and engine performance -- and with a presidential candidate's support of policies like the Next Generation Fuels Act, many will recognize Iowa as a market leader of sustainable fuel."

When asked by DTN if the news release constituted an endorsement of DeSantis, a spokeswoman for ICGA stated another press release was coming soon showing that Haley had also checked all of the boxes.

Haley, in her Treynor town hall, threw a brief nod to biofuels as she highlighted her strategy to become "energy dominant." Haley said, "That includes biofuels. That means getting the EPA out of the way. They care more now about sage brush lizards than whether we can afford our power bill."

The Biofuels Vision checklist on its website shows Trump has question marks over whether he would "properly enact the RFS, preserve existing biofuels tax credits, adopt U.S. GREET model, unlock higher ethanol blends, or support (a) farm bill with energy title."

Businessman Vivek Ramaswamy drew fire in late November from the Iowa Renewable Fuels Association (IRFA) for his opposition to carbon pipelines. The IRFA called him hypocritical because Ramaswamy has backed the Keystone XL petroleum pipeline from Canada, which relied on eminent domain to secure land access. READ MORE

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Candidates delve into ethanol, trade issues as Iowa caucuses approach (Agri-Pulse)
DeSantis: Eminent domain needed in pipeline projects like Keystone (Iowa Capital Dispatch)
DeSantis will debate Nikki Haley one-on-one next week in Iowa on CNN (News from the States)
Haley attacks DeSantis over ethanol at biofuels summit (News from the States)
DeSantis, Haley vow to ditch Biden’s green energy subsidies (Washington Times)
Haley and DeSantis Pander to Iowans by Praising Ethanol Mandate -- Unfortunately, none of the Republican candidates want to scrap the federal ethanol mandates. (Reason)
Presidential candidates cater to Iowa ethanol industry at annual conference (Daily Nonpareil)
Biofuel Politics, E15, SAF, GREET -- 6 Key Issues for Biofuels From the Iowa Renewable Fuels Summit (DTN Progressive Farmer)
DeSantis, Haley Back Ethanol to Appeal to Iowa Farmers: Florida Governor Ron DeSantis affirmed his commitment to year-round sales of E15 gasoline, saying drivers should have access to such higher-ethanol blends at the pump, in a last-minute attempt to reach Iowa farmers days before the caucus. (Financial Post)
DeSantis, Haley Back Ethanol to Appeal to Iowa Farmers -- Both Republican candidates spoke at renewable fuels summit; The Republican Iowa Caucus is scheduled for Monday night (Bloomberg)
Presidential candidates cater to Iowa ethanol industry at annual conference (Quad City Times)
DeSantis Dismisses Old Opposition to Ethanol Mandates as ‘Misunderstanding’ (RealClearPolitics)
GOP CANDIDATES BACK BIOFUELS AT IRFA SUMMIT (Brownfield Ag News)
GOP presidential hopefuls back ethanol in bid to gain Iowa farmer vote (The Gazette)
Governor Reynolds sees a bright future in biofuels for Iowa (KXEL; includes AUDIO)

Excerpt from Reason: Haley dinged DeSantis over his past support for ending a federal ethanol mandate. DeSantis denied that he had in fact supported ending the mandate.

...

DeSantis "should tell Iowans why he authored legislation to ban the Renewable Fuel Standard that's so important to Iowans' economy," Haley declared. DeSantis retorted later that he did in fact support the Renewable Fuel Standard, offering as proof that "I've actually visited all 99 counties [in Iowa]. I've actually shown up to people's farms, I've sat and I've listened to people about what they're going through, how their economy is structured, and how it's important that we're producing energy here in the United States."

Former President Donald Trump, who remains the favorite to recapture the Republican presidential nomination, did not participate in the debate. But he has previously criticized DeSantis on the same point, telling a Des Moines crowd in 2023 that "Ron DeSantis is aggressively pushing against ethanol, which I think would be devastating."

In 2017, as a member of Congress, DeSantis did in fact co-sponsor H.R. 1314, the Renewable Fuel Standard Elimination Act. As the bill's title implies, it intended "to repeal the renewable fuel program of the Environmental Protection Agency." READ MORE

Excerpt from DTN Progressive Farmer: 5. DESANTIS ON BIOFUELS, AG

After a bruising debate on Wednesday night, Florida Gov. Ron DeSantis and former United Nations Ambassador Nikki Haley offered their views on biofuels and agriculture.

Catering to the crowd, each said they unleash biofuels better than the other.

The Florida governor highlighted that he had toured the entire state and met with "all facets of the agriculture industry, including the biofuels industry." Through that, DeSantis said,

"I have been able to learn a lot about the critical role that plays in small communities, bigger communities and how it impacts the economy, jobs and overall thinking from the perspective of somebody nationally that believes that America should be producing its own energy."

On energy policy, DeSantis said he backs an "all-of-the-above strategy that includes biofuels."

"I have checked all of the boxes they have been looking for.

Like others who challenged EPA on the slow, regional year-round E15 rule, DeSantis said his administration would implement E15 nationally, and possibly more.

"There is the possibility of people doing much higher blends, and there should be a waiver for that," DeSantis said.

The governor also criticized California's Proposition 12 law on the space requirements for hog producers, saying it, "basically now is regulating how you produce pork in other states, including here in Iowa."

"People are fleeing California because of its bad policies."

While touting biofuels, DeSantis also challenged ESG -- policies around environmental, social and governance. The governor said groups use issues such as climate change and are "putting their thumb" on energy policy and blaming agriculture for climate as well. He noted how he "knee-capped ESG" in Florida by banning ESG policies from becoming factors for decisions in pension funds or municipal bonds.

6. HALEY ENERGY, AG EXPORTS

Haley pointed to election ads attacking her because she polls better against President Joe Biden than does former President Donald Trump or DeSantis. She also noted DeSantis had spoken to the group before her. "Did he tell you he authored legislation to ban the Renewable Fuels Standard?" Haley said. She added, "Did he tell you that he co-sponsored five different bills to ban the Renewable Fuels Standard?"

Haley also said DeSantis banned fracking and offshore drilling in Florida.

On energy, Haley said permitting needs to be sped up and the U.S. needs to "open up the Keystone pipeline" as well as export more liquified natural gas.

"We need to focus in on biofuels, and not just enough; let's do enough we can export it out. Let's turn it into an economic powerhouse."

The U.S. right now exports more than 1 billion gallons of ethanol. Canada is the largest market, taking in more than 603 million gallons in the last market year.

Haley said she would support the Renewable Fuel Standard (RFS), but also "get our energy system in such a way" that the U.S. does not go to countries such as Saudi Arabia or Venezuela for oil.

On farmers, Haley said they cannot control prices, but "the last thing they need is government pushing down on them more" through EPA. Food security is national security, she said.

On China, Haley said, "Iowa is very tied to China, and China is our No. 1 national security threat." Haley called for diversifying U.S. exports to India, Japan, South Korea and Israel to reduce export reliance on China.

"Let's go and move that trade over," she said. "You all are already seeing it now. When China buys something, they place an order, then they cancel an order. And then they wait and buy it at cheaper prices. That's what China does." READ MORE

Excerpt from RealClearPolitics: As a member of Congress, Ron DeSantis backed the elimination of the Renewable Fuels Standard, calling the biofuel program in a 2015 op-ed “a noxious example of rent-seeking and crony capitalism.” The Florida governor, now a presidential candidate, promises to uphold the program.

His initial position, DeSantis said in an interview with RealClearPolitics last month, was the result of a misunderstanding and “a false premise.”

“I was asked to sign that because I had voters in Florida that wanted ethanol-free gas, and I thought RFS meant you couldn't get non-ethanol gas, but that's actually not true,” DeSantis told RCP when asked about legislation he co-sponsored to end the program in 2017 with former Virginia Rep. Bob Goodlatte.

“You do have ‘E-Zero, and that's something that's sold. I think it was kind of a false premise when I signed on to it,” the governor added looking back. “I don't think I really understood it.”

“I've now been able to go and meet with a lot of farmers, meet with a lot of folks in the industry, and understand the role that it plays,” he said of his transformation from ethanol skeptic to advocate. “And obviously, it is a federal statute, so as an executive, of course, I'm gonna uphold that.”

Rivals have repeatedly tried unearthing the DeSantis record on biofuels to hurt him in corn-heavy Iowa. At the final debate in that state before the caucuses, Nikki Haley renewed the parochial argument.

“He should tell Iowans why he offered legislation to ban the renewable fuel standard that’s so important to Iowans’ economy and the fact that he co-sponsored five different pieces of legislation to get rid of it,” Haley argued Wednesday.

“I'm the only one who checked all the boxes from the Iowa Renewable Fuel Standards because I've actually visited all 99 counties, I've actually shown up to people's farms,” DeSantis shot back. “I've sat and I've listened to people about what they're going through, how their economy is structured and how it's important that we're producing energy here in the United States.”

Before that tour, DeSantis appeared to have a decidedly negative view of the biofuels program. He detailed his opposition in a December 2015 op-ed for Conservative Review.

“There is perhaps no better example of this type of venture socialism than the infamous ethanol mandate, aka the Renewable Fuel Standard,” he wrote. “Enacted in 2007, the RFS is a harmful policy that damages car and boat engines, hurts the environment, reduces fuel efficiency and places an upward pressure on gas and food prices.”

After pointing to a study by the conservative Heartland Institute that showed the mandate increasing food costs at the expense of taxpayers, DeSantis derided RFS as “a policy that richly rewards producers of ethanol and the D.C. lobbyists paid to guard this special treatment.”

“The elimination of the ethanol mandate should be a priority for conservatives,” he concluded. “Ditching the mandate vindicates free market principles, reduces the scope of government and provides relief for consumers.”

When railing against the fuel standard, DeSantis did not, however, make any mention of the availability of ethanol-free gas like he would later mention in his interview with RCP. His conversion came later and in Iowa where the candidate argues that ethanol is both critical to energy security and a necessary expansion of consumer choice.

“I want American jobs, I want American-produced energy, I don't want to go hat in hand to Saudi Arabia and beg for energy, I don't want to have to rely on Venezuela. So we have an ability here in the United States to do an all-of-the-above strategy, including biofuels,” DeSantis told the Iowa Renewable Fuels Association on Thursday.

Writing in the Des Moines Register last September, DeSantis backed a proposal supported by Iowa Gov. Kim Reynolds to allow E-15 for year-round use, lifting its summertime ban, and called for the federal government to step aside.

“My administration will also support giving drivers additional low-cost options at the pump, including higher ethanol blends such as E30 and higher-octane options, and ensure that America’s fuel economy is driven by moms in Marion, not bureaucrats in Washington,” he wrote in the op-ed. “Washington needs to allow more freedom of choice in its transportation options and get out of the way of innovation.” READ MORE