Many U.S. Farmers Fume at Washington, Not Trump, over Biofuel, Trade Policies

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September 10, 2019

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by P.J. Huffstutter and Tom Polansek (Reuters) ... Many farmers are angry, and some are directing their anger not at the Republican president, but at Washington’s bureaucracy.

Trump has faced backlash from agricultural groups, ethanol producers and Midwestern politicians upset that his trade war with China has slashed export sales of U.S. soybeans and other crops. Also, Corn futures tumbled after the government forecast a big crop when a flood-ridden spring stalled plantings. Corn-based ethanol plants shuttered after the administration granted waivers to dozens of exempting oil refineries.

Yet polls show that while Trump’s support in farm country has slipped, it remains substantial.

Instead of directing their anger at Trump, dozens of farmers interviewed by Reuters blasted the U.S. Department of Agriculture (USDA) and other Washington institutions they believe are thwarting his true agenda. Unsubstantiated conspiracy theories involving USDA staff are circulating in farm country and gaining traction online.

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“It’s much easier to be angry at a faceless Washington bureaucracy than at the man you voted for,” said Jere Solvie, 69, grain and hog farmer from west-central Minnesota who voted for Trump and still supports him.

Ahead of Democratic nominating contests, that party’s presidential candidates have been campaigning hard in Iowa and other Midwestern states where farms have lost billions of dollars in crop sales to China.

Still, the latest Reuters/Ipsos poll conducted last month shows five in 10 U.S. adults in rural areas approved of Trump’s performance in office, higher than his 41% approval nationwide.

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But (Agriculture Secretary Sonny) Perdue’s honeymoon in farm country has ended. Farmers booed the agriculture secretary in Minnesota last month after he joked: “What do you call two farmers in a basement? A whine cellar.” READ MORE

Art Cullen: Branstad wakes Trump to danger in Iowa (Storm Lake Times)

Farmers Who Don’t Trust U.S. Data Vow to Hoard Until Prices Rise (Bloomberg)

APPEC: US ethanol exports slow as producers diversify away from China (S&P Global Platts)

Cooperative Relies on RFS Waivers--CountryMark Sits on Both Sides of Small-Refinery Waiver Controversy (DTN Progressive Farmer)

TRUMP “BETTER RETHINK” HIS ABILITY TO WIN IOWA, FARMERS WARN (Iowa Starting Line)

Darin LaHood: Washington must stop undermining Midwest ethanol (Journal Star)

Anxious Iowa farmers eyeing Democrats over Trump, Carroll ethanol leader says (Carroll Times Herald)

Trump has angered the wrong people: Farmers (Washington Post)

Excerpt from Storm Lake Times: Ambassador Terry Branstad walked into the White House on Aug. 19 to brief President Trump on the trade war with China, but the two-hour conversation was consumed almost entirely about losing Iowa in 2020 over ethanol, according to a fascinating story by Reuters posted Friday.

Branstad warned Trump that the administration infuriated rural voters in Iowa and Wisconsin by issuing waivers of ethanol blending requirements to 31 gasoline refiners. The Iowa Corn Growers said they were “fed up” with the administration.

Trump ordered up a phone call to the EPA and USDA chiefs with Branstad in the room. “Let’s fix this now,” he commanded them, according to Reuters.

Trump then issued a tweet promising a “giant package” to make farmers “so happy.”

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“Most of these ethanol plants, especially the older ones, have been underwater for more than a year,” said Iowa State University trade analyst and research economist Dave Swenson. “They’re producing like crazy at the lowest possible cost and they’re still losing. It’s all because of low commodity prices.”

That is, too much oil, too much natural gas, too much fracking and too much corn make for too-cheap energy. And China doesn’t want it even at that price.

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But when Branstad showed Trump the map of Iowa counties he will lose because of the ethanol burn, the President started listening for once.

He (Branstad) is the one who called for an increase in the Iowa gasoline tax because hybrid and electric cars were causing a serious shortage in the road use tax fund. He knew six years ago — the Iowa Department of Transportation had all the facts and figures — to show that corn-based ethanol will have a hard time in the nation’s energy future. Asia is going electric, not to the Chevy 327 V8. That’s why IDOT was studying a wheel tax for electric cars or road tolls to pay for maintenance — because fuel sales were declining.

Corn ethanol still has a net negative environmental impact, according to Trump’s EPA. It also has been a big contributor to America not relying as much on Middle East and Venezuelan oil.

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Trump’s stumble on ethanol blending waivers added insult to deep injuries inflicted to pork, ethanol, soy and beef interests with the trade war that has no end in sight. Democrats are making hay. Congressional candidate JD Scholten is tweeting every day about how Trump is selling Iowa down the river. Joe Biden is all over it. Sen. Joni Ernst is hearing about it in spades. Neither Trump nor Branstad can do anything about China as Xi enjoys seeing Trump twist in the wind.

For Branstad to confront Trump, and for Trump to take it, tells everyone that he is scared to death of losing in 2020. READ MORE

Excerpt from Carroll Times Herald: Many in the Iowa ag community — “myself included,” said Carroll-based ethanol executive Nick Bowdish — are supporting President Trump in taking on China in broad strategic talks, even if farmers take temporary hits through tariffs, but the goodwill is quickly evaporating over the administration’s granting of waivers to petroleum producers to relieve them of mandated biofuels blends — a move that is depressing ethanol demand and dealing rural Iowa something of a double whammy.

“For anybody in the agricultural community to decide to vote for the president with this sort of policy action, that’s a vote to cut off our economic prosperity,” Bowdish said. “The farmers that I communicate and speak with are definitely expressing to me a pause here in their consideration, and I think a lot of them are listening to people running for the Democratic ticket and what their rural vision for this country is. Several of (the farmers) may not vote for the president and may just choose not to vote at all if they don’t see an alternative.” READ MORE