• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Techethanol

What You Should Know About Ethanol and the Iowa Caucus

By
Katie Fehrenbacher
Katie Fehrenbacher
Down Arrow Button Icon
By
Katie Fehrenbacher
Katie Fehrenbacher
Down Arrow Button Icon
February 1, 2016, 2:34 PM ET
Illinois Harvest
As the silos fill up, harvest corn is piled outside at the Archer Daniels Midland grain elevator Thursday, Oct. 23, 2014, in Niantic, Ill. The U.S. Department of Agriculture says last week's corn harvest jumped 16 percent over the previous work, bringing to 59 percent the amount of the crop that's been brought in from the fields. Above-normal temperatures and below-normal rainfall is credited with allowing the farmers to make up ground on the harvesting that had been slogging along because of nagging precipitation. (AP Photo/Seth Perlman)Photograph by Seth Perlman — AP

One of the rare times that U.S. ethanol—the biofuel made mostly from corn—takes the national stage is during the Iowa Caucus in a presidential election year. Close to half of the corn grown in Iowa goes to ethanol production, according to the Iowa Corn Growers Association,

Over the past month, many of the presidential candidates, both Republican and Democrat, have toured the state and taken pro-ethanol stances as they look for both voter and industry support.

On Monday, some Iowa voters will be considering the candidates’ positions on ethanol and government mandates to support it as they head to the polls. For Iowans, ethanol means jobs and economic growth, not just a way to replace oil with domestic plant-based fuel.

About a decade ago, the government implemented the Renewable Fuel Standard (RFS), which requires that 95% of U.S. gasoline be blended with 10% ethanol. The standard has been a boon to Iowan corn growers.

Crop ETFs Lure Funds on Weather Risk as Goldman Cautions
A Deere & Co John Deere tractor planting corn in Malden, Ill. Photographer: Daniel Acker/Bloomberg via Getty Images
Photograph by Daniel Acker — Bloomberg via Getty Images

The standard also calls for a more advanced form of ethanol, including a kind made from plant waste, to increasingly be blended with gasoline. But such efforts have mostly been failures, and many advanced biofuel plants that were under construction have struggled and shuttered.

But in 2016, the conversation about corn-based ethanol is a little different than it was in previous elections. Spurred by a variety of reports over the years that question the environmental impact of corn ethanol, pundits and regular Americans alike have started to change their minds about both the RFS mandate and support of corn ethanol in general.

Scientists are reviewing whether corn-based ethanol actually lowers green house gas emissions compared to gasoline. Partly because of the use of fertilizer, ethanol production also emits green house gases while gobbling up water and sometimes polluting nearby bodies of water .

Additionally, corn produces far less energy when turned into fuel compared to other plants like sugarcane or even when combusting gasoline. Using land to produce food for ethanol, instead of to feed people, can also cause unintended consequences for global food markets.

At one point Silicon Valley was bullish on biofuels:

But the skepticism isn’t shared by most Iowans. The state generates too many jobs from ethanol and accounts for too much of its economy.

That’s why Republican candidate Ted Cruz’s stance to phase out the RFS has been particularly upsetting to Iowan corn growers. As this excellent PBS piece shows, Cruz has been shadowed around the state by the pro-ethanol group America’s Renewable Future. Cruz is a Senator from Texas, a major oil industry state, and reportedly has ties to the oil industry.

The only other candidate to stand against the RFS during this election cycle is distant Republican runner Rand Paul. All of the Democrats support corn ethanol and the RFS.

Get Data Sheet, Fortune’s Technology New Letter.

If Cruz wins in the Iowa Caucus, pro-ethanol groups are worried that it could set a precedent that candidates can refuse to worship at the corn ethanol altar and still do well. Trump, the leading Republican candidate, has said he supports the ethanol mandates.

However, the emergence of doubts about the sustainability of corn ethanol, have made some strange bed fellows. The liberal magazine Mother Jones, which likely stands in opposition to Cruz on almost every issue, recently wrote an article about the RFS entitled: “Here’s One Issue Ted Cruz Actually Gets Right.” The piece says, “Cruz’s opposition to ethanol mandates puts him in a place you would never expect to find him: on the right side of a debate about climate change.”

Even if Cruz doesn’t win in Iowa, the corn ethanol lobby appears to be losing its grip on the Iowa Caucus. The massive drop in oil prices over the past year makes all forms of biofuels less competitive compared to gasoline.

About the Author
By Katie Fehrenbacher
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
Fortune Secondary Logo
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

AIJobs
Nobel laureate Joe Stiglitz says not only can AI take your job, it’ll make the ‘tech bro’ class richer while doing so
By Catherina GioinoMarch 6, 2026
10 hours ago
palmer luckey
AIPentagon
Palmer Luckey says Silicon Valley has the Pentagon all wrong: ‘Stick to a position that this is in the hands of the people’
By Jake AngeloMarch 6, 2026
12 hours ago
AIdisruption
OpenAI investor Vinod Khosla believes AI will be able to do 80% of all jobs by 2030. Here’s how life could be affordable after mass unemployment
By Nick LichtenbergMarch 6, 2026
13 hours ago
Startups & VentureVenture Capital
February was the biggest month in venture history, thanks to OpenAI, Anthropic, and Waymo in particular
By Lily Mae LazarusMarch 6, 2026
13 hours ago
Future of WorkFortune 500: Titans and Disruptors of Industry
Silicon Valley investor Vinod Khosla predicts education will be free, and the future of college is ‘a real question’
By Marco Quiroz-GutierrezMarch 6, 2026
14 hours ago
schmidt
CommentaryData centers
Eric Schmidt: big tech should power its own AI ambitions 
By Eric SchmidtMarch 6, 2026
14 hours ago

Most Popular

placeholder alt text
Economy
The Treasury may need to borrow an extra $1.6 trillion to cover the hole left by tariff ruling and pay a further $400 billion in debt interest
By Eleanor PringleMarch 6, 2026
21 hours ago
placeholder alt text
AI
Anthropic just mapped out which jobs AI could potentially replace. A 'Great Recession for white-collar workers' is absolutely possible
By Jake AngeloMarch 6, 2026
16 hours ago
placeholder alt text
Success
Chinese billionaire who has fathered more than 100 children hopes to have dozens of U.S.-born boys to one day take over his business
By Emma BurleighMarch 5, 2026
2 days ago
placeholder alt text
Politics
Iran is turning out to be a more effective enemy than many thought, and U.S. allies are losing their patience with the war
By Jim EdwardsMarch 6, 2026
21 hours ago
placeholder alt text
Middle East
The Iran conflict will be the ’straw that breaks the camel’s back’ for the U.S. economy if it goes on much longer, Nobel laureate Paul Krugman warns
By Tristan BoveMarch 6, 2026
1 day ago
placeholder alt text
AI
OpenAI investor Vinod Khosla predicts today’s 5-year-olds won’t ever need to get jobs thanks to AI
By Sasha RogelbergMarch 4, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.