Trump in high-stakes balancing act between oil and corn ahead of 2020 bid

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At a closed-door meeting at the White House on Aug. 19, President Donald Trump looked increasingly alarmed as his top envoy to China delivered ...

WASHINGTON/NEW YORK: At a closed-door meeting at the White House on Aug 19, President Donald Trump looked increasingly alarmed as his top envoy to China delivered evidence of rising Farm Belt frustration over his biofuel policy along with a stark warning: You've got a problem in Iowa.

"This was the first time that the president was made fully aware of how angry these farmers are over this issue and that he could have a serious problem in Iowa and potentially other states where this topic is an issue," said one of the sources.

An announcement is expected as early as next week, followed quickly by a Trump trip to Iowa to celebrate, two of the sources told Reuters. Iowa's Republican governor, Kim Reynolds, is helping to organise the rollout, which could include boosting ethanol blending mandates and expanding the markets for higher-ethanol blends of gasoline, the sources said.

The EPA did not comment on the phone call, but noted that the administration has overseen annual increases in domestic ethanol production and record ethanol exports.

 

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