Senator Grassley visits Hampton

Senator Charles Grassley visited Hampton on Monday, Aug. 31.

Dropping by Franklin Rural Electric Cooperative for an open meeting with employees and guests, the senator answered questions and addressed concerns as he wrapped up his annual 99-county tour of the state.

Appropriate for the audience, agriculture and renewable energy was the topic of the day, starting with a question about the status of the next big farm bill. Grassley told the audience that was too early in the legislative process to be discussing the next farm bill and that, in this case, no news was good news.

“You would expect maybe the beginning of 2022 to start having some hearings on that,” said Grassley. “Something would have to go wrong with the program if we started looking at intervening now before the Farm Bill program runs out.”

2022 could also be an impactful year for ethanol production. The EPA will be examining the mandatory levels of ethanol that must be used in gasoline in 2022 and Grassley expects the oil industry to push for lower amounts when that time comes.

“We’ve got to get ready for the fact that by 2022 we could be in trouble fighting the oil companies,” said Grassley. “That’s not really a discussion today, but soon it will be a discussion.”

A more immediate discussion on ethanol ties into the stalled second round of COVID-19 related stimulus. During the early months of the pandemic and subsequent economic crash, the federal government purchased $3 billion worth of oil for the national strategic reserve to stimulate the oil industry.

With congress negotiating the terms of a second round of economic stimulus, Grassley is advocating for equivalent support for the biofuels market.

“We’re trying to get one of two things,” said Grassley. “Either $3 billion in the CARES package specifically for ethanol or, out of $20 billion suggested that the Department of Agriculture wanted to get to help low farm prices, get some of that for ethanol.”

Grassley also went on a minor tangent about the perception in Washington that support for ethanol is primarily the purview of Iowa senators.

“By the way, I get sick and tired of talking about how to help ethanol because it seems like only Grassley and Ernst have to work on it,” said Grassley. “You know we’ve got 14 states, that’s 28 senators, that ought to be helping us on it. … But somehow, if we don’t get something done on ethanol it’s all Grassley and Ernst’s fault.”

Also on alternative energy, Grassley talked about subsidies for wind farms that will be phasing out over the next couple years.

In 2015, Grassley negotiated a five-year phase out for wind farm subsidies that was ultimately extended to six years. With that phase out period nearing its end, Grassley says he can no longer go to his fellow senators to ask for more support for the wind energy industry. Though he still supports wind energy and believes that it can stand on its own, advocates for federal investment will now have to find another supporter in congress.

“I’ve been promising all my fellow senators for several years, that have wanted to do away with it, … I said if we can have a five year phase out, I won’t be around asking for anymore,” said Grassley. “If you can go ahead and get it extended I won’t fight it, but I can’t advocate for it.”

Commenting on more current events, Grassley weighed in on the upcoming Presidential election, reaffirming his support for President Donald Trump based on what he has achieved in office.

“A little one for most people would be moving our embassy from Tel Aviv to Jerusalem,” said Grassley. “Every president said they were going to do that, but they never did.”

Grassley also credited Trump for negotiating increased defense spending from NATO allies and signing the 2017 tax cuts.

In the same vein, Grassley opposes Democratic Presidential nominee Joe Biden’s plans to undo the tax cuts on income over $400,000, raising the top rate from 37 to 39.6 percent.

“Can you imagine raising the marginal tax rate to 39.6 percent,” said Grassley. “And capital gains is going to pay the same as earned income? Can you imagine what that’s going to do to investment?”