Wallaces Farmer

There is no 'field of dreams' for Iowa without ethanol

Corn growers explain why it's critical for Iowa voters to support a pro-RFS candidate in Monday's statewide Presidential Caucus.

Rod Swoboda 1, Editor, Wallaces Farmer

January 31, 2016

7 Min Read

A few days before the fast-approaching Iowa Caucus, the Iowa Corn Growers Association held a press conference January 29 to emphasize the importance of ethanol and the Renewable Fuel Standard to the state of Iowa and all Americans. The evening of February 1, Iowa voters attending their local caucus sites across the state will begin the selection process that will eventually determine the next president of the United States. ICGA encourages all Iowans to attend their local caucus and support candidates who support the RFS.

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In recent weeks with 11 Republican and three Democrat candidates crisscrossing Iowa, giving speeches and asking for voter support, several issues have become strikingly clear for farmers. The general misunderstanding of the RFS by some candidates and by a large share of the voting public is a key issue close to the hearts of corn growers. “The RFS is needed for market access for renewable fuels to provide choices at the pump for consumers. The RFS is also extremely important to the economic foundation of rural America, and many of the candidates and the media don’t fully understand or appreciate these two realities,” says Bob Hemesath, president of the ICGA.

Iowa needs to hold on to the field of dreams and to the RFS
Some presidential candidates have supported proposed legislation to kill the RFS. The ripple effects of dismantling the RFS could have devastating effects on the environment, our nation’s employment rate and the stability of our nation’s farmers, says Hemesath. At the press conference on Friday, he gave personal statements on the importance of corn ethanol and why supporting a candidate who supports the RFS is imperative for the future of Iowa and the nation as a whole.

 “The RFS matters because agriculture became an industry that was thriving again, thanks to the RFS,” says Hemesath. “The RFS has provided a market for corn through value-added corn processing. As a result, young people began coming back to Iowa and the farm. If we hadn’t had the opportunities to revitalize our farms and invest in our business, my nephew would not have been able to come back and farm with us.”

Ethanol has provided new jobs, has stabilized the economy
One point Hemesath drove home was the fact that there will be no field of dreams for Iowa without ethanol. Ethanol has a history of providing new jobs, stabilizing the economy and offering a homegrown, renewable fuel for American consumers. “There are 12 candidates who support the RFS to choose from in the caucus on February 1,” he noted. In his closing remarks, Hemesath urged Iowans to support a candidate that supports America. “Agriculture and ethanol do not matter for only Iowa in this presidential election. Please go out and caucus for a candidate that supports the RFS.”

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For more information on the RFS, visit iowacorn.org/en/ethanol/renewable_fuel_standard. Following are other comments Hemesath made to the media at the ICGA’s January 29 press conference.

HISTORY OF IOWA’S ETHANOL INDUSTRY: Ethanol has been used in vehicles back when Henry Ford introduced it in the Model T. Since 2003, ethanol has grown rapidly as the clean burning oxygenate in fuel. The Renewable Fuels Standard, or RFS, is about market access. While gasoline companies need oxygenate, they don’t want to lose too much market share, but the RFS provides an avenue for market access for cleaner burning fuels and renewable energy choices for consumers.

The ethanol industry has been extremely vital to our state and has brought: New jobs, a stabilized economy, and a homegrown, renewable fuel for American consumers.

RENEWABLE FUEL STANDARD: I’m here today to talk to you about the Renewable Fuel Standard. The RFS is the only law on the books combating Climate Change. In 2007, the RFS spurred the growth of the industry, going from 25 ethanol plants to 172 plants in 25 states by end of 2008. The majority of that growth happened in the Corn-Belt. In Iowa, we went from three wet mill plants to more than 40 plants. The dry-mill plants provided opportunities for farmer investment and rural Iowa investment. In local communities, we experienced growth on Main Street bringing new schools and more than 73,000 Iowa jobs, created today thanks to Iowa’s renewable energy industry. And yes, more corn was grown.

This policy has allowed us to replace 10% of our nation’s fuel supply with a clean, American-made source of energy. By replacing fossil fuels with homegrown biofuels, the RFS has displaced nearly 1.9 billion barrels of foreign oil since its inception. The overall intent of the RFS was to increase national security by decreasing reliance on a single energy source – oil. The RFS has numerous benefits including boosting America’s rural economy and providing a positive impact on the environment by reducing greenhouse gas emissions by 50% compared to pure gasoline. And yes, more corn was grown.

WHY IT MATTERS: The field of dreams became a reality where ag became an industry that was thriving again. Iowa State University and other land-grant colleges saw a growth in students wanting to be involved in agriculture. Jobs were created. Young people were coming back to Iowa and the farm. If we hadn’t had the opportunities to revitalize our farm and invest in our business, my nephew would not have been able to come back and farm with us. I’m not alone. Farmers and neighbors in my community tell the same story. Our country can’t afford to turn back the progress. It is vital for Americans to support a strong RFS and a pro-RFS candidate.

NO SUBSIDIES: There is a lot of misunderstanding about the corn ethanol subsidies. The RFS is not a corn subsidy. The blenders’ tax credit expired more than five years ago in 2011, but even that went to gasoline blenders, not ethanol plants, and not corn farmers. The RFS does not mandate consumers to use ethanol. It requires that oil companies blend a certain amount of renewable fuel with gasoline and diesel to guarantee the customer access to cleaner burning, low-carbon renewable fuel.  It’s about market access for renewable fuel that is grown on my farm delivered to an ethanol plant 20 miles away. The blend wall is fictitious. EPA does not enforce a blend wall. Most gasoline sold in the U.S. is made up of 10% ethanol. EPA has approved E15 to be sold by gas stations for 2001 or newer vehicles. EPA helps retailers pay for new pump infrastructure that would enable them to sell higher ethanol blends.

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Feed and Fuel: Another thing I want to make sure you understand is that when I deliver the corn from my field, its field corn. Not the delicious sweet corn you might enjoy on the cob or in a can. It’s field corn. That corn goes to the ethanol plant, and they use the starch to make the ethanol, at 2.8 gallons per bushel. And then I go back and pick up distillers grains or high quality protein feed for my pigs. Nothing is wasted and my pigs are fed and ethanol is produced.

The RFS matters for Iowa and for all Americans in this presidential race, because the president who is elected will likely be in office for the next eight years. I want consumers to get the advantage of choice at the pump with cleaner burning fuel, I want personally to be able to grow the corn and provide fuel to meet that renewable fuels standard so that we truly can gain the advantages of renewable fuel. I know that we can grow the corn here in Iowa and the Corn Belt to meet the demands.

ICGA’S POSITION: We can’t afford to let the ethanol industry that has built and supported Iowa’s economy be taken away from us by a president who doesn’t support the RFS. I don’t care which side of the political aisle you stand on, which 12 of the presidential contenders do, but I implore you to support a candidate who supports the RFS. It is truly important whether you are a farmer or not to support the RFS and continue to invest in the state of Iowa.

CLOSING: I believe consumers want fuel choices at the pump and want a choice that is cleaner burning and reduces emissions. I’m working every day to make sure you have a meal on your table and fuel in your car to get you to work and feed your family. Americans must support a candidate who supports America. Agriculture and ethanol do matter not only for Iowa in this presidential election. Please go out and caucus for a candidate that supports the RFS. Thank you!

About the Author

Rod Swoboda 1

Editor, Wallaces Farmer

Rod, who has been a member of the editorial staff of Wallaces Farmer magazine since 1976, was appointed editor of the magazine in April 2003. He is widely recognized around the state, especially for his articles on crop production and soil conservation topics, and has won several writing awards, in addition to honors from farm, commodity and conservation organizations.

"As only the tenth person to hold the position of Wallaces Farmer editor in the past 100 years, I take seriously my responsibility to provide readers with timely articles useful to them in their farming operations," Rod says.

Raised on a farm that is still owned and operated by his family, Rod enjoys writing and interviewing farmers and others involved in agriculture, as well as planning and editing the magazine. You can also find Rod at other Farm Progress Company activities where he has responsibilities associated with the magazine, including hosting the Farm Progress Show, Farm Progress Hay Expo and the Iowa Master Farmer program.

A University of Illinois grad with a Bachelors of Science degree in agriculture (ag journalism major), Rod joined Wallaces Farmer after working several years in Washington D.C. as a writer for Farm Business Incorporated.

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