Senator Marshall: Year-Round E15 Would Double Ethanol Exports

Senator Marshall Joins the American Ag Network

Washington - U.S. Senator Roger Marshall, M.D. (R-Kansas), joined Jesse Allen on the American Ag Network's Agriculture of America to discuss what he has been working on to lower fertilizer prices and input costs, the need for year-round E15, the review of the USMCA, and the future of international agricultural trade.

Click HERE or on the image above for Senator Marshall's full interview.

On the need for lower fertilizer prices:

"Yeah, Jesse. You know, it's been going on for years. You know, when Russia invaded Ukraine, we saw fertilizer prices go up. Not just the nitrogen-based fertilizers, but also the potash fertilizers as well. So we've been put we've been working on fertilizers, really, since that event happened. We have a package of bills that we're going to be announcing later at that news conference as well, and what that package of bills looks like to bring down the price of fertilizers. And again, I expect the Secretary to have a big announcement; I don't want to get ahead of her as well. But we need to get this package of bills across the finish line; it pushes transparency in the cost of fertilizers, and it also helps new small business to get into the fertilizer business. I don't have to tell your listeners that right now so many of the things like fertilizers, chemicals, and the people that make tractors are controlled by two or three companies, and they have their own little oligopolies going on. So we're trying to lower the cost of fertilizer - a huge priority for this office."

On E15:

"Yeah, well, let's take, you know, ethanol, E15, just for a second. So if you'd asked me what my top three priorities right now are, it would be E15, E15, and E15. Like you said, we've already taken care of crop insurance and the Title I funding - we added $50 billion to those in the Working Family Tax Cuts bill. So we've really taken care of that, but now it's getting E15 across the finish line. And even though we're expecting corn and ethanol exports to go up 25% this year, getting this E15 year-round would be like doubling that again. That's how important ethanol is to this country and to the American farmer as well. So that's my top ask of USDA and the White House right now. And President Trump has come out, you know, supportive of it, but unfortunately, we have six or seven senators that are clogging that up. And on the Senate side, it's hard to realize this, but you get a handful of Senators together, and they can block almost anything from getting to the Senate floor. We had the votes to pass it, but we got to get it to the floor one way or the other."

"Well, that's a great question, Jesse, and I think that ethanol has always been a political football. And it's always been kind of oil versus agriculture-the oil industry. And the great thing in Kansas, where I live, is both are really important to Kansans - both the oil industry as well as the ethanol industry. So we've worked really hard to bridge that gap right now. And you know, you think about just the price of gasoline at the pump right now. There are two things we would bring down the cost of gasoline at the pump: one is our credit card bill, which promotes competition and would decrease it a dime a gallon, but the other thing is, for people to use more ethanol. Ethanol is much less expensive than oil is right now as well. You go to a high blend ethanol at 85% and goodness, you're going to decrease the cost at the pump by 50, 60, 70 cents. So I think we need to stay focused on that part of this as well. And really, again, it's just five or six senators that are slowing this up, and they have small refiners in their home states that are really, I think, overstating their situation as well. So yes, of course, it's a political football, but regardless, you know, this President committed to the American farmer; over 90% of the rural counties voted for this President, and he wants to deliver for rural America, and so do I."

On the USMCA review:

"Well, Jesse, USMCA isn't a good thing - it's been a great thing. Agriculture exports increased 45% from America to Mexico and Canada, partially because of the USMCA, comparing before and after. So it's vitally important. You think about what USMCA means-there's $2 trillion of trade now between these three countries. It goes way beyond agriculture, but I think agriculture is the biggest benefactor of it. I do like the term "do no harm," but there's always opportunities to make the program better. I think agriculture is in a really good spot. We took a recent group of producers to Mexico just for this purpose, and I think the big opportunity there is more ethanol and more dairy into Mexico as well. And I would just say this, I would much rather deal with the Mexican government or the Canadian government - even with the milk issues in Canada - than I would with the Chinese Communist Party. They're a much better, more consistent buyer. Again, I don't have to tell your producers the ups and downs of China, buying whether it's milo, or corn, or soybeans as well. So they've been great partners; we need to get it across the finish line. You know, I think the challenge right now is that Mexico is trying to circumvent its tariffs by bringing products in through Mexico right now. But so far, Mexico has been a great partner, and they're slapping increased tariffs on those Chinese products as well. So we need to get it across the finish line. There'll be a lot of drama surrounding it, but at the end of the day, we need to get it across the finish line."

On the future of agricultural trade:

"Well, Jesse, I don't know that it's necessary. I would have no problem with it, but to think about this: Joe Biden did zero trade agreements, Donald Trump has done trade agreements now with - I don't know - 20 or 30 countries, and certainly our top 10 agriculture folks. So I'm not sure what else he could do to get them done right now. And again, we're going to see corn and ethanol exports up 25%. I just want to emphasize that when the American farmer makes money is when we sell value-added products. We're never going to compete with Brazil again - they can grow two soybean crops a year, a corn crop, and a soybean. What we can out-compete them on is something like ethanol. When we turn sorghum into ethanol, or corn into beef, or soybeans into poultry or into biodiesel, that's when the American farmer makes money. I think that the President has done an incredible job on these trade agreements as well, and now it's just a matter of implementing them. And again, like I'm going to say for the third time, we're going to have corn exports and ethanol exports up 25% going into this year, and I expect the other products to follow as well."

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