Missed Opportunity? Biden's State Of The Union Hits Big Meat, Neglects Renewable Diesel
As the crisis in Ukraine continues to overtake the world’s attention, President Joe Biden delivered his first State of the Union address Tuesday night. And while he stated the U.S. is in a better place than it was a year ago, agriculture was left largely unmentioned.
While Biden noted the lack of competition in the meat sector during his address, he didn’t highlight the White House’s efforts to ramp up the production of renewable fuels. Biden blamed meat packers and ocean carriers for inflation.
“I’m a capitalist, but capitalism without competition isn’t capitalism,” Biden said during his address. “It’s exploitation — and it drives up prices. When corporations don’t have to compete, their profits go up, your prices go up, and small businesses and family farmers and ranchers go under. We see it happening with ocean carriers moving goods in and out of America. During the pandemic, these foreign-owned companies raised prices by as much as 1,000% and made record profits. Tonight, I’m announcing a crackdown on these companies overcharging American businesses and consumers.”
Missed Opportunity for Renewable Fuels
As the agriculture angle in the speech came from the meat sector, just last year, the Biden administration announced efforts to reduce the United States’ use of traditional jet fuel. The administration stated last year that by ramping up production of Sustainable Aviation Fuel (SAF), they want 100% of the aviation fuel demand by 2050 to come from SAF. However, Tuesday night, SAF and renewable diesel, a possible demand boon for crops like soybeans, were missing from the president’s speech to the nation.
“We do think that that's probably a missed opportunity,” says Stephen Censky, CEO of the American Soybean Association (ASA). “We would have liked to have seen the president talk more about that, given the situation that's happening worldwide. Given the Russia-Ukraine situation, and what a big exporter Russia is of energy, given the administration's focus on climate and doing all that we can to reduce the impacts of climate change. And to address that in a meaningful way, we have ready-made solutions to address both of those. And that's through increasing opportunities for renewable biofuels, to compete and to provide incentives to create that space. We think it's good for national security. And we think it's also good for the environment.”
Already this week, ExxonMobil became the latest oil producer to cut business ties with Russia, following similar moves by BP, Shell and Equinor. "We deplore Russia's military action that violates the territorial integrity of Ukraine and endangers its people," ExxonMobil said in a statement.
The news could put an even larger priority on fuels made from renewable resources, such as vegetable oil and soybean oil.
Highlights from SOTU Address
While the renewable diesel piece was missing, Farm Journal Washington correspondent Jim Wiesemeyer says, “Biden mainly repackaged his prior controversial proposals into a speech that many say lacked a coherent theme and ended up mostly being a 62-minute traditional, laundry wish list. He barely mentioned China, and he stayed away from noting the withdrawal, some say surrender, in Afghanistan.” According to Wiesemeyer, highlights of Biden’s State of Union address included:
• Pushed unity against Russia and battle against inflation.
• Did not pivot for more U.S. oil production.
• Did not announce end to U.S. imports of Russian oil.
• Did not mention trade policy which means this is not a priority.
• Repackaged prior controversial proposals into a speech lacking a coherent theme.
• Lashed out at Russian President Vladimir Putin, saying he “badly miscalculated.”
• Pledged Russia will suffer even more economically the longer the conflict goes on.
• Said investment needed in U.S. manufacturing capacity to lower prices, speed up supply chains and boost American jobs. Extolled a resurgence of manufacturing, saying the Rust Belt deserved a new name.
• Singled out meat packers and ocean carriers for blame when it comes to inflation.
• Said answer to crime and problems with the criminal justice system isn’t to “defund the police… The answer is to fund the police with the resources and training they need to protect our communities.”
• Said the U.S. needs “to secure the border and fix the immigration system.”
• Noted his bipartisan successes, such as the $1 trillion infrastructure bill.
• On Covid, warned it could flare up again if a new variant emerges but said the tools are now available for Americans to return to more normal lives. Said most federal workers will once again work in person. “Our schools are open. Let’s keep it that way. Our kids need to be in school.” Said he will be requesting further supplemental spending to address the pandemic.
• Appeared to embrace drug price controls, with a call to “cap the cost” of insulin at $35 a month.
• Will transfer unused money from the American Rescue Plan to help shore up ObamaCare.
Build Back Better?
While Biden didn’t make specific mention of the“Build Back Better” plan, which hit a roadblock in Congress last year, Biden referenced the plan without providing more details about its future.
“I call it building a better America,” said Biden on Tuesday night.