Posted By David Rothkopf Share

Word came through late yesterday that as anticipated here the White House caved to Senator Grassley, providing assurances America would not be lifting its tariff on Brazilian ethanol anytime soon.

As interesting to me was that the Renewable Fuels Association, which is not like many things in Washington what its name suggests and does not support all renewable fuels just those produced by its members, saw fit to issue a press release going after me and Andrew Sullivan who graciously picked up some of what I had written on our corndog friends. They accused me of being an international consultant (true) who has worked closely with Brazil (also true). It helps to work with different parts of the world to actually know what's going on in them. In fact they characterized me as a Brazil nut. This hurt. Because I actually am not a big fan of Brazil nuts. They then went on to say that there are, despite my assertion to the contrary, credible experts who think corn makes a shred of sense. They listed a number of reasons why corn would make sense -- if you were just interested in using a feedstock that is already being produced for which we already have fancy subsidy programs that comes from states with a lot of political clout, for example. They also erroneously suggest that Sullivan and I implied (which we did not) that corn only comes from Iowa. In fact, I for one, know corn comes from lots of other places including Hollywood and Washington flackeries. But perhaps my language was not precise enough. 

So let's toss the ball right back at them. Please find a credible expert who believes that corn is the best possible feedstock from which to make ethanol or that corn is actually a more efficient source of energy than other feedstocks like sugarcane or likely next generation feedstocks. Once you've done that we can move on to the idea that subsidizing an industry with an unsustainable model is in the U.S. national interest or that having U.S. consumer pay more for fuel in the current economic environment is a good idea or that protectionism is really the answer. Or better yet, perhaps we can move the discussion on to why the U.S. continues to lavish subsidies on the ag business that distort world trade and, very often, primarily offer a payday to corporate farms and well-to-do larger farmers. 

 
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BLUE13326

5:28 PM ET

August 3, 2009

I guess I just don't get why

I guess I just don't get why it's somehow Grassley's fault that he wanted Obama to affirm a position he took during the campaign.

If anything, isn't it Obama's fault for taking the position to begin with (likely based on early primary politics)?

And would you respect Obama more if he switched his position now and just said, well, I lied to get those early Iowa votes, and now I want to do what's for the best?

 

NATHANSCHOCK

8:47 PM ET

August 7, 2009

Best possible feedstock?

David,
Since you travel internationally, you must know that the best crop for a particular country varies based on a multitude of factors. Biofuels are no different. In Brazil, the best crop for ethanol is clearly sugarcane. If there is a better crop in the U.S. than corn for biofuels, why aren't we producing any significant amount from it? The next generation biofuels you talk about (and our company is working on) get more than twice the tax credit of ethanol from corn, but they still aren't being produced.

As for the tariff, it exists to offset the domestic blender's tax credit for ethanol. That way, the tax credit to encourage the production of renewable fuels stimulates the domestic industry and not those from foreign countries like Brazil. The Brazilian ethanol imported into this country still gets the blender's credit.

 

David Rothkopf is the CEO and Editor-at-Large of Foreign Policy. His new book, "Power, Inc.: The Epic Rivalry Between Big Business and Government and the Reckoning that Lies Ahead" is due out from Farrar, Straus & Giroux on March 1.

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