Sprint to the Finish

By Michael Dolch, ISA Director of Public Affairs

After an unusually eventful August, Congress is back under the U.S. Capitol dome with an agenda full of critical issues that will take compromise in a deeply divided Congress. As I write this, a sprint to the finish is underway with fewer than 30 legislative days clinging to the House calendar and less than 40 in the Senate.

During the state work period, and as Iowa’s congressional delegation crisscrossed their districts, Iowa Soybean Association (ISA) directors and advocate members followed closely, rallying to voice mounting frustration across farm country. Members engaged elected officials at more than 15 events, ranging from roundtables and town halls to farm visits and industry tours. Each opportunity was unique, but all were strictly business. ISA farmer-members laid out a host of issues impacting their profitability and freedom to operate.

Members of Iowa’s House delegation heard key messages on the U.S.-Mexico-Canada (USMCA) trade agreement, which would stabilize two neighboring export markets. They also heard perspectives on the biodiesel tax incentive and the importance of America’s inland waterway system, including dredging the lower Mississippi River. Senators were urged to direct the Administration to restore biodiesel demand destroyed by EPA’s continued abuse of small refinery exemptions.

But what does that mean? Simply put: a lost profit opportunity.

It’s estimated the 31 retroactive waivers granted for the 2018 compliance year destroyed 387 million gallons of biodiesel demand. If you assume 1 bushel of soybeans yields 1.5 gallons of biodiesel, that would equate to 258 million bushels of lost soybean demand. If you subtract the lost demand from the current carryout of nearly 750 million bushels, the U.S. inventory would fall below a historically high, but manageable, 500 million bushels while also injecting life into the soybean market. Remember, this is a conservative, back-of-thenapkin calculation.

Now consider this. Three years, 85 small refinery exemptions and an estimated 1.4 billion gallons of destroyed biodiesel demand later, the industry’s lost out on a potential domestic market for more than 900 million bushels of soybeans. By my calculation, the Administration could orchestrate the ultimate win-winwin by supporting a domestic policy that’s good for farmers, consumers and the environment, not to mention help win the trade war with China.

As I sit here pounding the keyboard, Jeff Jorgenson of Sidney – ISA’s President-Elect and Public Affairs Committee Chairman – is preparing to brief Senate leaders and staff on the expanding role of precision agriculture in farm profitability and feeding the world. In the coming weeks and months, it’s imperative that we secure federal funding to improve Mississippi River infrastructure, amend the U.S. Army Corps of Engineer’s Master Manual to prioritize flood control, and work to increase state and federal investments in water quality and soil conservation.

It’s a sprint to the finish, folks, and not a time to coast or leave the work to others. We must go on offense, amplify our needs and concerns, and demand action rather than rhetoric out of Washington.

Wishing you a safe and bountiful harvest season.

MDolch@iasoybeans.com