Senator Grassley. Stop being a “Corn Dog!”

Senator Grassley. Stop being a “Corn Dog!”

Senator Grassley is holding up the confirmation of Thomas Shannon to be ambassador to Brazil because of Shannon's statement at his confirmation hearing that eliminating the tariff on ethanol would be beneficial.

Let’s call that collection of agricultural state politicians who put the interests of their farmer constituents ahead of the national interest “Corn Dogs.” Senator Grassley is one.

David J. Rothkopf gets to the heart of the dispute in his Foreign Policy blog post “You’ve heard of the Blue Dogs, Now introducing the Corn Dogs…” (here):

U.S. ethanol tariffs are indefensible on any level, yet another example of the system of agricultural welfare that has burgeoned in the United States thanks to that good old fashioned combination of backroom and checkbook politics that make America great. There is not a single credible analyst of biofuels (which is to say one that is not paid for by or affiliated with American agriculture) who thinks that corn ethanol makes a hint of sense. It is hopelessly inefficient and with every new development regarding next generation biofuels only grows more so. Brazilian sugar cane ethanol, the main target of the tariffs, is produced as much as eight times more efficiently. As such, it offers a cheaper, more abundant, more environmentally friendly alternative to American consumers at a time when one would have thought that concerns about reducing dependence on foreign oil and combating climate change would be at the forefront of our concerns.

But once again, America's electoral system rears its ugly head. So long as presidential campaigns begin in Iowa, Iowans like Grassley will use the system to put the interest of their state's three million citizens and the most vocal special interests within their midst like the corn lobby, ahead of the three hundred million or so of the rest of us. Further, in so doing, Grassley seeks to preserve yet another dimension of America's system of farm protection and subsidies that costs tax payers tens of billions each year, forces food prices higher (according to the likes of Nobel Prize winner Joe Stiglitz) and is the single biggest distortionary factor in the world trading system. I understand why he is doing it. It's just a shame he can. The system allowing individual senators to hold up presidential nominations is regularly abused and needs to be reconsidered.

Rothkopf has it right. Ethanol tariffs are bad. Most agricultural subsidies are bad. Confrim the ambassador! Move the date of the Iowa primary! Senator Grassley, stop being a “Corn Dog!”