WASHINGTON -- When President Donald Trump visits Iowa today, he will unveil a pro-ethanol perk aimed at corn and soybean farmers in the heartland made anxious by his tariffs on China and the trade dispute that has followed.
The trip to Council Bluffs, Iowa, is part of Trump's efforts to help Midwestern Republicans facing tight midterm election races this November because of a backlash to his trade policies. Lawmakers acknowledged that the plan -- which will include lifting a federal ban on summer sales of higher-ethanol blends of gasoline, something the industry has long sought -- will be critical to assuaging farmers in Iowa and elsewhere who have grown deeply worried about the falling prices of corn and soybeans.
"There is anxiety about the president's program on putting on tariffs," said Sen. Chuck Grassley, R-Iowa, though he noted the administration's successful renegotiation of a trade deal between the United States, Canada and Mexico has allayed some of those worries.
Still, he said that for farmers, the ethanol announcement "would be a big boost not only because of the anxiety of tariffs but because we're having another record corn crop and that naturally drives down prices." Grassley has long pushed to allow the sale of higher-ethanol-blend gasoline in summer months. The restrictions have been in place out of concerns that burning more ethanol in hot weather contributes to smog.
Political observers said today's rally is a good moment to show gratitude to Iowa's Republicans.
Steffen Schmidt, a professor of political science at Iowa State University, said he doesn't see Trump's ethanol announcement as a reward for Grassley's support, but rather as a sign of the mutually beneficial relationship that has emerged between the president and the powerful seven-term senator.
Under the plan, according to a senior administration official who spoke on the condition of anonymity, Trump plans to lift a ban that has traditionally run from June through September on selling gasoline that is blended with 15 percent ethanol. The anti-smog measure, which was imposed in 2011, has been previously criticized by Trump as "ridiculous."
The president will direct the Environmental Protection Agency to write a rule allowing the blended fuel to be sold year-round. The rule, which will have a public comment period, will be fast-tracked in order to be finalized before next summer's driving season, the White House official said.
According to the White House, Trump will also move to make it easier for the oil industry to comply with federal rules requiring it to either blend ethanol into its products or buy credits. Nevertheless, the oil industry -- which vehemently opposes lifting the summertime ban because it could weaken the industry's market share -- has come out strongly against the plan.
Grassley, for his part, said he views Trump's announcement as working to fulfill a presidential campaign promise to support the ethanol industry. "Every once in a while every politician has to reinforce their campaign promises," he said.
A Section on 10/09/2018