clearn.png
Monday September 23rd, 2019 3:13AM

Farmers' loyalty to Trump tested over new corn-ethanol rules

By The Associated Press
Related Articles
  Contact Editor

LACONA, Iowa (AP) — When President Donald Trump levied tariffs on China that scrambled global markets, farmer Randy Miller was willing to absorb the financial hit. Even as the soybeans in his fields about an hour south of Des Moines became less valuable, Miller saw long-term promise in Trump's efforts to rebalance America's trade relationship with Beijing.

"The farmer plays the long game," said Miller, who grows soybeans and corn and raises pigs in Lacona. "I look at my job through my son, my grandkids. So am I willing to suffer today to get this done to where I think it will be better for them? Yes."

But the patience of Miller and many other Midwest farmers with a president they mostly supported in 2016 is being put sorely to the test.

The trigger wasn't Trump's China tariffs, but the waivers the administration granted this month to 31 oil refineries so they don't have to blend ethanol into their gasoline. Since roughly 40% of the U.S. corn crop is turned into ethanol, it was a fresh blow to corn producers already struggling with five years of low commodity prices and the threat of mediocre harvests this fall after some of the worst weather in years.

"That flashpoint was reached and the frustration boiled over, and this was the straw that broke the camel's back," says Lynn Chrisp, who grows corn and soybeans near Hastings, Nebraska, and is president of the National Corn Growers Association.

"I've never seen farmers so tired, so frustrated, and they're to the point of anger," says Kelly Nieuwenhuis, a farmer from Primghar in northwest Iowa who said the waivers were a hot topic at a recent meeting of the Iowa Corn Growers Association. Nieuwenhuis said he voted for Trump in 2016, but now he's not sure who he'll support in 2020.

While Iowa farmer Miller saw Trump's brinkmanship with China as a necessary gamble to help American workers, the ethanol waivers smacked to him of favoritism for a wealthy and powerful industry — Big Oil.

"That's our own country stabbing us in the back," Miller said. "That's the president going, the oil companies need to make more than the American farmer. ... That was just, 'I like the oil company better or I'm friends with the oil company more than I'm friends with the farmer.'"

The Environmental Protection Agency last month kept its annual target for the level of corn ethanol that must be blended into the nation's gasoline supply under the Renewable Fuel Standard at 15 billion gallons (56.78 billion liters) for 2020. That was a deep disappointment to an ethanol industry that wanted a higher target to offset exemptions granted to smaller refiners. Those waivers have cut demand by an estimated 2.6 billion gallons (9.84 billion liters) since Trump took office.

At least 15 ethanol plants already have been shut down or idled since the EPA increased waivers under Trump, and a 16th casualty came Wednesday at the Corn Plus ethanol plant in the south-central Minnesota town of Winnebago. The Renewable Fuels Association says the closures have affected more than 2,500 jobs.

The 31 new waivers issued this month came on top of 54 granted since early 2018, according to the association. While the waivers are intended to reduce hardships on small oil refiners, some beneficiaries include smaller refineries owned by big oil companies.

The administration knows it has a problem. U.S. Agriculture Secretary Sonny Perdue said at a farm policy summit in Decatur, Illinois, on Wednesday that Trump will take action to soften the effects. He would not say what the president might do or when, but said Trump believes the waivers by his EPA were "way overdone."

In a tweet Thursday, Trump said he was working up a solution that would soothe both farmers and petroleum executives.

"The Farmers are going to be so happy when they see what we are doing for Ethanol," Trump wrote, but gave no details. "It will be a giant package, get ready! At the same time I was able to save the small refineries from certain closing. Great for all!

Geoff Cooper, head of the Renewable Fuels Association, said the heads of the EPA and Agriculture Department and key White House officials have been discussing relief, and said his group has been talking with officials involved in those conversations. He said they've heard the plan may include reallocating the ethanol demand lost from the exempted smaller refiners to larger refiners that would pick up the slack, but many key details remain unclear, including whether the reallocation would apply in 2020 or be delayed until 2021.

"Anything short of that redistribution or reallocation is not going to be well received by farmers, I'll tell you that," Cooper said.

The White House referred questions to the EPA, where spokesman Michael Abboud said that the agency would "continue to consult" on the best path forward.

Meanwhile, the oil industry has spoken out against some of the steps Trump has taken to try to appease the farmers, including allowing year-round sales of gasoline with more ethanol mixed in.

"We hope the administration walks back from the brink of a disastrous political decision that punishes American drivers. Bad policy is bad politics," Frank Macchiarola, a vice president for the American Petroleum Institute trade group, said in a statement.

Another example of the tensions came last week when the Agriculture Department pulled its staffers out of the ProFarmer Crop Tour, an annual assessment of Midwest crop yields, in response to an unspecified threat. The agency said it came from "someone not involved with the tour" and Federal Protective Services was investigating.

Despite farmers' mounting frustrations, there's little evidence so far that many farmers who backed Trump in 2016 will desert him in 2020. Many are still pleased with his rollbacks in other regulations. Cultural issues such as abortion or gun rights are important to many of them. And many are wary of a Democratic Party they see as growing more liberal.

Miller, too, says he's still inclined to support Trump in the next election.

Though Trump has inserted new uncertainty into Miller's own financial situation, he believes the president has been good for the economy as a whole. And as a staunch opponent of abortion, he sees no viable alternatives in the Democratic presidential field.

Chrisp, too, says he doesn't see an acceptable Democratic alternative. Still, he cautioned Republicans against taking farmers for granted.

"We're not a chip in the political game, though I'm certain there are folks who are political strategists who view us that way, but it's not the case," he said.

Brian Thalmann, who farms near Plato in south-central Minnesota and serves as president of the Minnesota Corn Growers Association, confronted Perdue at a trade show this month about Trump's recent statements that farmers are starting to do well again.

"Things are going downhill and downhill very quickly," Thalmann told Perdue.

Thalmann, who voted for Trump in 2016, said this week that he can't support him at the moment. He said farmers have worked too hard to build up markets and the reputation of American farm products and "I can't see agriculture getting dragged down the path it currently is."

___

Karnowski reported from Minneapolis and McFetridge from Des Moines. Associated Press writers John O'Connor in Decatur, Illinois; Candice Choi in New York; and Kevin Freking and Ellen Knickmeyer in Washington contributed to this report.

  • Associated Categories: Local/State News, Politics, Associated Press (AP), AP National News, AP Online National News, Top General short headlines, AP Online Headlines - Washington, AP Business, AP Business - Economy, AP Business - Industries, AP Business - Agriculture, AP Business - Utilities
© Copyright 2019 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Farmers' loyalty to Trump tested over new corn-ethanol rules
When President Donald Trump levied tariffs on China that scrambled global grain markets, many farmers were willing to absorb the financial hit. But now their patience is being tested.
3:58PM ( 3 minutes ago )
OxyContin maker negotiating settlement worth a reported $12B
Published reports say Purdue Pharma and the thousands of state and local governments suing the maker of OxyContin over its central role in the deadly opioid crisis are negotiating a $10 billion to $12 billion settlement
3:57PM ( 4 minutes ago )
Public trust proposal in opioid suit called 'novel approach'
A legal expert is calling the possibility of transforming the maker of the prescription painkiller OxyContin into a public trust a novel approach
3:50PM ( 11 minutes ago )
Associated Press (AP)
26 killed in fiery attack on bar in southern Mexico
An attack on a bar in Mexico's Gulf coast city of Coatzacoalcos has killed 26 people and wounded about a dozen and officials say it was apparently overseen by a man who had been recently arrested but released
3:07PM ( 54 minutes ago )
UK's Johnson moves to suspend Parliament ahead of Brexit
British Prime Minister Boris Johnson has maneuvered to give his political opponents even less time to block a chaotic no-deal Brexit before the Oct. 31 withdrawal deadline, winning Queen Elizabeth II's approval to suspend Parliament
2:49PM ( 1 hour ago )
US, Mexico widen asylum crackdown to push back all migrants
Trump administration program forcing asylum seekers to wait in Mexico widens to reject all migrants
2:46PM ( 1 hour ago )
AP National News
Shelter registration forms paint portrait of asylum seekers
Registration forms at a San Diego shelter for asylum-seeking families offers insights on who is coming, how they are treated in U.S. custody and where they go
1:33PM ( 2 hours ago )
Storm Dorian closing in on Puerto Rico near hurricane force
Puerto Rico is facing its first major test of emergency preparedness since the 2017 devastation of Hurricane Maria as Tropical Storm Dorian nears the U.S. territory at near-hurricane force
1:22PM ( 2 hours ago )
Epstein accuser says Prince Andrew should 'come clean'
Epstein accuser Virginia Giuffre says Prince Andrew should 'come clean'
1:11PM ( 2 hours ago )
Top General short headlines
McDonald's offering harassment training to all US workers
McDonald's _ facing dozens of cases of alleged sexual harassment filed by its workers _ is introducing a new training program for its U.S. employees
3:10PM ( 51 minutes ago )
Prominent DC lawyer takes stand to deny foreign lobbying
A prominent Washington lawyer says he never misled the Justice Department about his work for the Ukrainian government
3:06PM ( 55 minutes ago )
Another lawsuit filed over fatal Greyhound bus crash in Utah
A second passenger has sued the Greyhound bus company and a driver who authorities say fell asleep before the bus careened off a road in the Utah desert two years ago, killing one person and injured 12 others
2:40PM ( 1 hour ago )
AP Business
India liberalizes foreign direct investment to boost economy
India is liberalizing foreign direct investment in domestic manufacturing, coal mining and digital media and will also allow single-brand retailers to start online sales to infuse capital into the country and boost its economy
12:34PM ( 3 hours ago )
Germany to spend up to $44 billion to cushion coal exit
Germany's Cabinet has approved a plan to spend up to 40 billion euros ($44.4 billion) by 2038 to cushion the impact on coal-mining regions of abandoning the fossil fuel
6:54AM ( 9 hours ago )
Volvo's Polestar opens China factory to export to Europe, US
Volvo's electric brand Polestar going ahead with plans to export Chinese-made cars to the US despite trade tension
11:37PM ( 16 hours ago )
AP Business - Industries
Thousands in Mozambique rebuild after devastating cyclones
Five months after Cyclone Idai roared through central Mozambique, making some 200,000 people homeless, people are busy rebuilding their homes, fields and lives with help from international aid organizations, the government and Gorongosa National Park.
5:43AM ( 2 days ago )
Extinction bites: countries agree to protect sharks and rays
Countries have agreed to protect more than a dozen shark species at risk of extinction, in a move aimed at conserving some of the ocean's most awe-inspiring creatures who have themselves become prey to commercial fishing
11:01AM ( 3 days ago )
Countries agree to protect endangered sharks and rays
Countries have agreed to protect more than a dozen shark species at risk of extinction, in a move aimed at conserving some of the ocean's most awe-inspiring creatures who have themselves become prey to commercial fishing
6:53AM ( 3 days ago )
AP Business - Agriculture
Iran says oil on tanker pursued by US sold; buyer unnamed
Iranian government spokesman: Crude oil on tanker pursued by US sold to unnamed buyer
12:47PM ( 2 days ago )
Iran says oil aboard tanker pursed by US sold; buyer unnamed
Iranian government spokesman: Crude oil on tanker pursued by US sold to unnamed buyer
10:56AM ( 2 days ago )
Israeli PM cuts Gaza fuel transfers amid flurry of threats
Amid regional tensions, Israeli PM orders Gaza fuel transfers cut in half in response to rocket attack
9:09AM ( 2 days ago )
AP Business - Utilities
OxyContin maker negotiating settlement worth a reported $12B
Published reports say Purdue Pharma and the thousands of state and local governments suing the maker of OxyContin over its central role in the deadly opioid crisis are negotiating a $10 billion to $12 billion settlement
3:57PM ( 4 minutes ago )
Public trust proposal in opioid suit called 'novel approach'
A legal expert is calling the possibility of transforming the maker of the prescription painkiller OxyContin into a public trust a novel approach
3:50PM ( 11 minutes ago )
Biden pledges 'absolute wall' between job, family business
Democratic presidential candidate Joe Biden says during his decades in public office he has never talked to any family members about their private business dealings
3:48PM ( 13 minutes ago )
Democrats' window to qualify for next debate closing quickly
A handful of struggling White House hopefuls are bracing for bad news as the window to qualify for the next Democratic debate closes quickly
3:44PM ( 18 minutes ago )
FBI searches Detroit-area home of UAW president
Federal agents are searching the suburban Detroit home of the president of the United Auto Workers, apparently another step in an investigation of union corruption
3:37PM ( 25 minutes ago )