Rubio's sugar support draws corn, soybean questions
Mackenzie Ryan
mryan@dmreg.com
Renewable fuel leaders in Iowa are pressing Marco Rubio to support their industry with the same vigor the Florida senator has taken in backing sugar subsidies in his home state.
But the lack of detail on Rubio's support has some wondering whether he'll commit to specifics, or if a more general position indicates a double standard between the two industries.
The Republican presidential candidate says he's for the Renewable Fuel Standard, which is the ethanol industry's top priority, but that it should be phased out over time. He hasn't detailed what that looks like, and neither he nor campaign staff elaborated when asked by The Des Moines Register earlier this month.
"He could risk being seen as a bit hypocritical," said Christopher Larimer, a political science professor at the University of Northern Iowa. "But I'm not surprised that he hasn't been clear on it," noting some Republicans are seeking less government involvement in the market.
The RFS requires ethanol and biodiesel to be blended into vehicle fuel in increasing amounts through 2022. Supporters say the requirement is critical and accomplishes many of the same goals of subsidies that ended in 2011.
Related:Marco Rubio returns to Iowa this weekend
But they also fear the RFS may not be enforced and are looking for strong and detailed commitments from presidential candidates.
Corn and soybeans are Iowa's two leading crops. Almost half of Iowa's corn is used to ethanol production, while roughly one-sixth of the state's soybeans are used in biodiesel. Although the state's harvest is nearing record amounts this year, prices have remained stubbornly low. Net farm income is at its lowest level in nine years, according to the U.S. Department of Agriculture.
Supporters believe increased ethanol and biodiesel production would help raise prices, as well as preserve 73,000 jobs.
"It impacts their livelihood," said Monte Shaw, executive director of the Iowa Renewable Fuels Association. "If you're going to come to Iowa, you probably need to be prepared to have specifics."
Sugar subsidies
After Republican rival Ted Cruz took aim at sugar subsidies during last week's GOP debate, Iowa agriculture and biofuel leaders began questioning how Rubio's support for that industry compares with his stance on renewable fuels made from corn and soybeans.
"Every other country in the world that grows sugar has a program for their industry, and if we get rid of ours, they're going to wipe out our industry," Rubio told The Register the day after the debate. "And I am not going to wipe out an important agriculture industry in the state of Florida that I represent in the Senate."
RFS supporters believe ethanol faces similar unfair market competition with the strong domestic oil and petroleum industry, which they say has hefty lobbying clout. Some say Rubio may be walking a fine line in his treatment of the two industries.
"I would argue that ethanol competes against a subsidized oil industry; it's very analogous," Shaw said.
The RFS in seen as the solution to unequal market access, since oil and fuel companies often control the supply and distribution of vehicle fuels, he said.
Bob Hemesath, the president of the Iowa Corn Growers Association, agreed.
"If (Rubio) believes there's unfair trade tariffs on sugar internationally, he and other candidates should fully support the Renewable Fuel Standard because that gives us an even playing field," said Hemesath, who farms 2,200 acres of corn.
That thin political line may also apply to Jeb Bush, although the former Florida governor may be distancing himself from the sugar subsidies. A Bush spokeswoman told the Washington Post in October that the long-time supporter of sugar is now seeking to phase out the program, which came as a surprise to some.
Bush has also said the RFS should be phased out at some point, and suggested "2022 or sometime in the future," but was noncommittal beyond that.
The candidates' stances are also notable for another corn-based industry: high fructose corn syrup.
Corn Refiners Association CEO John Bode is among the outspoken critics of sugar subsidies, and went so far as calling Rubio's reasoning for them "absurd." He says the group is preparing to launch ads in Iowa against the sugar subsidies.
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Biofuel support
When The Des Moines Register asked Rubio about his support on measures for corn and soybeans that would help Iowa farmers when compared to sugar subsidies he supports, Rubio honed in on farm products that face foreign competition.
"I am in favor of supporting all American growers that are in unfair competition, versus other nations that have programs subsidizing their programs," Rubio said. "I'm not going to do anything that hurts American growers from their ability to compete against foreign competition."
It's an important distinction, because the unfair competition ethanol producers cite is in the domestic market.
Biofuel supporters are watching his and other candidate's statements as the caucuses near, including the America's Renewable Future coalition, which gave Rubio a "needs work" ranking this month in its "mid-term" report on presidential candidates.
The group also gave a "needs work" ranking to Bush, Ohio Gov. John Kasich and businesswoman Carly Fiorina, describing their positions as inconsistent. More libertarian-leaning candidates, such as Rand Paul and Ted Cruz, were given a "bad" rating.
Biofuels supporters say a specific commitment is essential for Rubio to garner their support, given he was not yet serving in the Senate during votes in 2005 to pass the RFS and 2007 to extend it.
After winning election in 2010, Rubio did cast votes against amendments that would have supported the biofuel industry. That included a vote on a measure in 2011 that was widely seen as a symbolic vote to end ethanol subsidies.
But industry leaders say those votes are on a second tier of importance.
"Our top 3 priorities are: RFS, RFS and RFS," Shaw said.
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If Rubio moves on from the Iowa caucuses without a defined commitment to policies like the RFS, some political watchers say he'll have more flexibility to take a harder stance later on federally backed biofuel programs.
"You've seen a number of Republican presidential candidates have come out so strongly anti-government everything, and yet they face the reality of electoral politics," Larimer said. "You have the state of Iowa, where subsidies are very important, and the fuel standard is very important. They're faced with this dilemma."
But while some see the ethanol measure as their main political issue, Simpson College political science professor John Epperson said many Iowa residents now live in cities and their attention may be elsewhere.
Epperson cited the leading national issues of immigration, the economy, and foreign policy, most notably the implications of the terrorist attack in Paris last weekend. And Rubio's spoken at length on all three.
Rubio's addressed his stance on immigration when asked about it at campaign events. And he's stumped on how he'd help small businesses through deregulation, and how he'll strengthen America's military and stand against radical Islamic groups.
The political weight of the RFS appeared to be tested last year, when U.S. Sen. Joni Ernst was criticized for saying she was philosophically opposed to all energy subsidies. But Ernst said she would support the RFS until all energy subsidies had ended, and cited her record in the Iowa senate supporting the RFS.
Her opponent in the general election hammered on the point, and opposition groups bought ads highlighting the issue. Ernst went on to win her seat in the Senate by more than 8 percentage points.
So when it comes to Rubio's support of biofuel, "the question becomes: Is it going to be enough to really harm him?" said Epperson.
Marco Rubio on sugar and other subsidies
When asked about his support for sugar subsidies, and how it compares with his support of corn and soybean programs that would benefit Iowa farmers, Marco Rubio said the following to The Des Moines Register last week.
On sugar subsidies:
"I'm prepared to get rid of the sugar subsidy program when the other countries that have them do as well. Every country ... in the world that grows sugar assists their native industry. And we're not going to unilaterally disarm and destroy our industry and leave them at the mercy of unfair international competition.
"So I'll be the first one. I've said this repeatedly, I am prepared to get rid of the sugar program as long as the other countries that we buy and trade in sugar do the same.
"Every other country in the world that grows sugar has a program for their industry, and if we get rid of ours, they're going to wipe out our industry. And I am not going to wipe out an important agriculture industry in the state of Florida that I represent in the Senate."
On sugar subsidies compared with corn and soybean programs:
"I don't ever want to put any of our industries at a competitive disadvantage. I support the concept of free trade, and I want us to lower tariffs and I want us to lower non-tariff barriers. I want us to get rid of all of these unfair practices abroad, so that we can compete evenly and fairly with anyone in the world that's allowed to do.
"What I'm not going to do is unilaterally disarm and destroy our agriculture industries, and leave them at the mercy of unfair competition from abroad. And so, whether it's sugar or any crop, I am not going to allow agriculture get wiped out. Because if you lose your agriculture capacity, you can't get it back. Once agriculture land is gone and it's developed, it can't be brought back into agriculture. And if you lose your agricultural capacity, you now depend on other nations for your food and the result is that prices will go up and our security is threatened."
On corn and soybean supports:
"I am in favor of supporting all American growers that are in unfair competition, versus other nations that have programs subsidizing their programs. And I'm not going to do anything that supports — I'm not going to do anything that hurts American growers from their ability to compete against foreign competition."
Rubio's Senate record on biofuels
Although subsidies for ethanol ended in 2011, federal programs for biofuels have continued to be considered by Congress.
Industry leaders say that the key votes they look at were in 2005, when the Renewable Fuel Standard was passed, and in 2007 when it was expanded. But absent clarity on a presidential candidate's position, they'll look at more recent votes.
That mindset may include Marco Rubio, who was elected to the Senate in 2010. He supports the RFS and would like it phased out over time, but hasn't provided details on what that would look like. When asked about his votes below, Rubio's campaign addressed only his vote on the 2014 Farm Bill.
Votes of Iowa senators (Retired Sen. Tom Harkin and sitting Sen. Chuck Grassley) and other Republican presidential candidates serving in the Senate (Ted Cruz, Lindsey Graham, and Rand Paul) have been included below.
RFS supporters say they'll giving more weight to clear and consistent positions on requirement, which guarantees ethanol access. The industry coalition America's Renewable Future has given "midterm" rating on candidate RFS positions: Graham's as "good," Rubio's as "needs work" and Cruz's and Paul's as "bad." View all their rankings here.
Feb. 4: The Agriculture Act of 2014 included measures for the reform and continuation of agriculture and other programs, including biofuel. Yes: Graham, Harkin; No: Cruz, Grassley, Paul, Rubio.
At the time, Grassley was championing provisions that "would have limited subsidies going to a few thousand people who are very well off and quite frankly don't need unlimited farm payments from the government," he said in Senate floor remarks. But the final bill didn't reflect that. "If I were to vote yes on this bill, it would be an endorsement of the egregious manipulation of my payment limit reforms behind closed doors."
In a statement at the time, Rubio referenced biofuels: "(w)e should be discussing renewable energy and biofuels programs in the context of energy policy, not lumping them in to this bill that's supposed to be about securing our nation's food supply."
"Marco, along with Joni Ernst, Chuck Grassley and Ted Cruz, opposed the 2014 farm bill, which spent nearly $1 trillion - most of which was unrelated to supporting our nation's farmers," said Brooke Sammon, a campaign spokeswoman.
Nov. 29: An amendment to the National Defense Authorization Act to strike the prohibition on biofuel refinery construction and give the Department of Defense the ability to continue investing in bio refineries. Yes: Grassley, Harkin; No: Graham, Paul, Rubio
Nov. 28: An amendment to allow the Department of Defense to test and purchase advance biofuels. Yes: Grassley, Harkin; No: Graham, Paul, Rubio
Both Department of Defense measures were seen as a small avenue for the biofuels industry, but did not receive much focused lobbying from the Iowa Renewable Fuels Association, said executive director Monte Shaw.
June 16: An amendment to end the Volumetric Ethanol Excise Tax Credit. Yes: Graham, Paul, Rubio; No: Grassley, Harkin
June 16 : An amendment to prohibit federal funds from paying for blending pumps and storage tanks, which allows for ethanol mixes can be created. Yes: Graham, Paul, Rubio; No: Grassley, Harkin
The measures to end the excise tax credit were seen by many as a symbolic vote to stop federal support for ethanol subsidies. A core group of Midwestern Republicans supported ethanol, but Shaw said the tax was set to expire, and the association had made a decision to let it go since the focus had shifted to the RFS. Of the amendment to block ethanol infrastructure funding, Shaw said: "It's a tiny, tiny program. We're talking dozens of pumps, not thousands."