GoodFuels

Supporting McCain in Spite of Ethanol Policies

It has been interesting hearing pro-agriculture and pro-ethanol Republicans who support Senator McCain despite his ethanol policies. He has been very clear where he stands on ethanol, saying during the most recent debate that he opposes subsidies for ethanol because they distort the market and create inflation and that he would eliminate the tariff on imported sugar cane based ethanol from Brazil.

Recently I asked Secretary of Agriculture Ed Schafer what he would say to Senator McCain about his farm policy in general and ethanol in particular. “What I would say to Senator McCain is this: ‘You’re flat out wrong about your agriculture policy,’” Schafer said bluntly. “The agriculture community by and large is conservative and agrees with you about government intervention and government mandates and government costs and taxes - there are a wide variety of things I agree with Senator McCain on.”

“While I vibrate some when I hear Senator McCain say no ag policy, no ethanol mandates, no support for these important public policies,” Schafer said, he hopes that Senator McCain gets some advisers who can help him see that “agriculture is the foundation of the economy and the strength of this country.”

Listen to Schafer’s comments here:

I also asked Senator Chuck Grassley recently if he is concerned about Senator McCain wanting to do away with ethanol incentives. “Not as long as I’m in Congress,” Grassley said. “When he’s president of the United States, we’ll still be developing an ethanol industry.” Grassley is one of the co-chairs of the McCain-Palin Farm & Ranch Team National Steering Committee.

Last week, former deputy USDA secretary Jim Moseley, speaking on Agri-Talk had to defend and explain McCain’s ethanol policy. “Now I have to tell you as a farmer and a person involved in agriculture all my life, and of course as a former deputy secretary of USDA, politically I would have to advise Senator McCain to avoid this issue,” Moseley said. “I think that tells us a little bit about who he is as a person and how deeply he feels about some of these issues.”

When asked directly why investors in the ethanol industry should support a McCain presidency, Moseley responded that he would support ethanol on the demand side. “You’ve got to keep the demand obviously ahead of the supply and that’s where the investment then, the tax credits need to be made,” Moseley said.