00:00:15
Speaker 1: Pushkin Hey listeners, Amy here, I'm dropping into your feed today to bring you a preview of the new season of my podcast Drilled. As a longtime climate journalist, I've been hearing for at least twenty years that the markets will solve climate change. On this season of Drilled, we look at where that approach has landed us, following an ethanol kingpin and carbon entrepreneur from Iowa to Brazil and asking is this really helping anything? I hope you enjoy it and if you do, find Drilled carbon cowboys wherever you listen to your podcasts. Pushkin Plus subscribers can hear episodes early in ad free sign up on the Drilled show page on Apple or Pushkin dot fm, slash Plus. In early September twenty twenty five, a handful of Brazilian government officials headed to North Dakota on a mission. It was a technical mission. They were there to see a shiny new green technology in action. The idea behind this new technology was simple, when you turn corn into ethanol, it generates carbon dioxide and that's a problem if you're trying to be a green fuel. But now people from Iowa to North Dakota were capturing that carbon dioxide, storing it and selling it. Never mind that they were selling it to people who would inject it underground to get broil out. Some of it would surely still stay underground, and if you tilted your head and squinted a bit, that made it a climate solution. The American company selling the Brazilians on this idea had a lot writing on these officials, believing that carbon capture connected to ethanol was a great green success story when when for industry in the environment an American dream they can take home to Brazil. But had the visiting bureaucrats scan the local newspapers, they might have found a different story. If you live in Iowa, your land, your water, and your voice could all be at risk thanks to a man named Bruce Rastetter.
00:02:28
Speaker 2: You know, essentially paying him to capture CO two at ethanol plants and then shipping it across private land and public land and then disposing of it somewhere many states away.
00:02:44
Speaker 1: On September second, the Brazilian contingent met with an Iowa company called Summit Carbon Solutions. Summit has been trying for years to build a carbon capture pipeline to connect dozens of ethanol plants from Iowa to North Dakota. It's called the Midwest Carbon Express Project. Harold Ham, who can rolls many of North Dakota's oil fields and is an energy advisor to President Trump, is a major investor in the company. Bruce Rasstetter is the company's co founder. He's also a founder and executive chairman of its parent company, Summit Agricultural Group. For other cheerleading of the project to visitors, the Summit pipeline is years behind schedule and facing multiple political and legal roadblocks. In fact, it's managed to do almost no politician issue or campaign has been able to do in the US for years. United far left and far right populous people from both sides hate this pipeline. For rast Utter, it's not the first time he's faced opposition, especially in his home state of Iowa.
00:03:59
Speaker 3: Anyone who remotely follows politics or agriculture, you say Raftetter, You're going to get a response.
00:04:06
Speaker 1: Jess Masur is the conservation coordinator for the Sierra Club Iowa. For just the Carbon Pipeline was not the first time she'd dealt with Bruce rast At.
00:04:15
Speaker 3: Her they know who it is, and they go, oh, you know that guy, did this so that guy put a factory farm near my house, or he's the one that you know, got Iowa State in trouble. So I think everyone's got an.
00:04:26
Speaker 1: Opinion of him.
00:04:27
Speaker 3: And he's really really good at being able to avoid ever having to be in the public. He doesn't get interviewed, he doesn't take media requests. Kind of secret if he lives out in the middle of nowhere in Hardin County, Iowa.
00:04:43
Speaker 1: Rastutter got his start as a big hog farmer. From there, it wasn't a big leap to growing corn, and then, like a lot of corn growers, that led quickly to getting into the corn ethanol business. As a longtime climate reporter, I keep waiting for people to stop calling corn ethanol green. Its current footprint is similar to regular old guess. It requires around thirty times as much land as solar, plus lots of water and chemical pesticides and fertilizers. But industrial agriculture gets loads of substitutes from it, so they're always finding a way to keep it alive, and in twenty twenty two, Congress handed it its latest lifeline.
00:05:29
Speaker 4: The Inflation Reduction Act contains some really incredible things for our shareholders. It contains sustainable aviation fuel. We think that's an incredible part of decarbonizing the planet.
00:05:41
Speaker 1: The Infletion Reduction Act, Biden's big climate policy created a whole new revenue stream for the corn athmol guys. Now they could sell to airlines, but only if they embraced carbon capture. Bruce Restetter to the rescue, so I.
00:05:58
Speaker 5: Think without continuing to attain new markets, thethnol industries in jeopardy. So that's what lowering carbon scores. This project on the pipeline is about. With thirty four ethanol plants across the Upper Midwest, but in particular Iowa.
00:06:15
Speaker 1: Some at Carbon Solutions still talks about the project today as a way to open up new markets for Iowa corn farmers. So the company was caught off guard when people across multiple states began organizing against the Midwest Carbon Express and it quickly became a big problem because Rastetter was not just the ethanol kingpin of Iowa. His company was also the majority owner of a Brazilian ag company, FS Fueling Sustainability, and he'd helped to make corn ethanol a thing in Brazil too. Now SMIT is trying to make carbon capture happen there too. Welcome to Drilled Season fifteen, Carbon Cowboys. I'm Amy Westervelt and this season We've partnered with the amazing reporters at the Intercept Brazil to learn more about what Rastetter is doing down there.
00:07:09
Speaker 6: I'm Filippe Sabrina with the Interceptor Brazil. I will be hosting the Portuguese version of the season over on the Intercept to Brazil Feed. This is a story about how the ethanol kingpin of Iowa became the king of corn in Brazil, and how.
00:07:24
Speaker 1: A bunch of ideas that are great for the oil and egg industries got rebranded as Climate Solutions and created a carbon gold rush.
00:07:38
Speaker 6: Think maganin as you think port could you consider you?
00:07:41
Speaker 1: A few months ago, Philippe started telling me about this giant pig statue that greets people near Bruce Rastutter's home base in Brazil. Because yes, his partners in Brazil also started out as pig farmers. These guys are all still in the pig business, and boy do they love pigs. When Philippe sent me a picture of this pig statue, I was kind of shook. If you're imagining some sort of tasteful bronze statue. Think again. This is a massive orky pig looking thing wearing laterhosen and a bright green hat, holding a corn cob.
00:08:17
Speaker 6: And it even has a name Lucina or Little Lucas because the town is called Lucas do Hill Virgi. It tells you actually a lot about this place. It was proposed by one of the largest landowners in the area, big agriculture business guy. He comes from a German family, which is why the pig is wearing a German outfit. Around fifty years ago, the Brazilian agriculture industry came to this place looking for a cheap and easy land grab. Today the American agriculture industry is doing the same thing.
00:08:51
Speaker 1: Vusista in Lucas do Hill Virgi asid dojigi opportunidadjis aki ajasujin priguzali do did you leave the same kopram? This audio you're listening to with the epic background music is from a promotional video by the Lucas Story of ViRGE City government highlight the wonders of the city. The video mixes images of the caause forests in the sunset and large cotton, soybean and cornfields. The city government wants you to know that Lucas is the city of opportunities. It has more than ninety five thousand inhabitants and produces more than two million tons of grain per year. The narrator of the video says, we are one of the fastest growing cities in Brazil, and then this screen fills with a mix of smiling children, crops and grain pouring out of machines. Lucas the realerge is all money, growth and seas of corn and soybeans as far as the eye can see.
00:09:49
Speaker 6: The first time I visited, it shocked me to see massive crops right next to people's homes. But the more I learned about Lucas, the more it made sense. The town is a fiction designed and built by the government to impose development on this region. Lucas was in really created to serve agriculture and its owners. The wide avenues are lined with silos, agricultural machinery, stores, supply stores, credit banks, and real state agencies. Trucks over twenty meters long, loaded with soybeans or corn have plenty of space to drive around or park on the curb. Walking in Lucas, on the other hand, is a challenge because of the distances between the long avenues, the heat, and the lack of trees to provide shade. The city is obsessed with imperial palm trees. There are hundreds of them in the town center and on the sides of the roads. With nothing but monoculture crops and important palm trees, there is no vegetation in the area to insulate it from extreme temperature changes. Lucas can go from freezing code to unbelievably hot from one moment to the next. It was weird for me, but the people I spoke with here didn't seem to mind. The image of abundant harvests has drawn people from all over the country to Lucas.
00:11:22
Speaker 3: All right, going from yeah yeah think.
00:11:25
Speaker 7: My husband was n't employed for two years. Then we saw reports about the city, which is a very good place to leave to raise children, even in terms of violence, so we packed all bags.
00:11:38
Speaker 1: Isabella is from Ministerized, a Brazilian state southeast of Lucas, but since twenty twenty one she's been living here with her husband and children. She sells Asai e bowls in front of the parking lot of a multinational grain company. Assai is a fruit typical of the Amazon. Isabella buys it from suppliers and sells it to truck drivers who load and unload grain. Here, she passes small bowls of Asai cream through the fence and the truckers passed back cash. Isabelle said Lucas is great, not least because when she needs to take her kids to a public hospital, she never waits more than an hour to be seen.
00:12:19
Speaker 7: In the city. I don't think anyone can complain about health.
00:12:23
Speaker 1: Care, She says that Lucas, the Rio Verge hospital s Lucas in particular, is especially nice. It's run today by a partnership between the city and agribusiness entrepreneurs.
00:12:40
Speaker 7: Now they've opened a really nice word that to the whole hospital has been renovated.
00:12:49
Speaker 8: Apart I supposed to Lucas Maternity for you is passed by a properson existens.
00:13:02
Speaker 1: In fact, the new maternity ward at the saw Lucas Hospital has a promotional video too, and a few seconds into it, listeners might recognize a not so Brazilian sounding name.
00:13:14
Speaker 8: North American Bruce Hast.
00:13:18
Speaker 1: Bruce Restedter, the ethanol kingpin of Iowa. He wields a lot of power there, but outside the state, he's not exactly a household name. Now suddenly a new wing in the hospital in this Brazilian farm town was being named after this guy. How did that happen?
00:13:39
Speaker 6: The hospital canceled my tour just before I arrived, so our producer marcaver does and I just showed up to see what we could see. We talked to a hospital worker in the hallway.
00:14:02
Speaker 1: It's a little hard to hear there because Philippe and Marcia were trying to tape with their phone, and of course she's speaking in Portuguese too, But when they asked her about the name of the ward, the Bruce rast at her wing, she said it was named after Bruce, a doctor from Ohio. We're still not sure where she got that idea, but funding big public projects, especially around hospitals and healthcare, is really common in Brazil. You just heard how when telling Philippe about what she likes about Lucas, Isabella mentioned healthcare. People think of hospitals as an example of how nice a city is or how well it's working. So if Lucas has a good hospital, no one can say that the politicians or the businessmen running things here are bad. That goes double for anything that's focused on women and children. So a maternity ward checks a lot of boxes. And then we found out that the hospital is run by a foundation led by one of Rasstutter's Brazilian business partners, Marino Friends. Marino's brother Paulo was the one that proposed that giant pig statue that looks out over Lucas. And to understand how rastatter the American farmer ended up with a Brazilian rural maternity war named after him, we had to figure out how the Franz brothers fit into it, and what brought Bruce to Brazil in the first place. That's gonna yet after the break. Lucas to Rio Verge is in the Brazilian state of Mato Grosso, a state that is almost exactly half agriculture and half Amazon rainforest. It used to be even more Amazon. For decades, the state was considered the frontier in Brazil. The forests were preserved and it was home to even more indigenous people than it is today. But in the nineteen sixties and nineteen seventies, Brazil's military government deployed a new strategy was called the National Integration Plan. The idea was too eliminate indigenous communities that were seen as anti development and integrate the north and midwest of Brazil into the national economy.
00:16:19
Speaker 8: Seldom sada Architomba is grabbed.
00:16:22
Speaker 3: You might study of play, he said, antitask on that level community.
00:16:27
Speaker 1: This propaganda film from the seventies celebrates the quote revolution reaching the jungle, toppling trees in favor of roads. The goal was to develop the Amazon by building infrastructure in the wilderness, displacing indigenous residents and encouraging people from outside the region to move there, to be pioneers and go to this frontier and tainment. The main farm towns in Moto Grosso today were deliberate colonization projects, many of them built and funded by the Brazilian government. The government offered people plots of land, housing, and sometimes even credit to move there. They even funded research to figure out how crops like soybeans and cotton could be grown in the tropical climate there. That's what brought the Franz brothers there decades ago, and according to Paolo, it's the Franz brothers who brought Bruce to the area. In Paolo's telling, it all happened because of an internship he did in Iowa and an important contact he made there. Here he is talking about it on a Brazilian podcasts.
00:17:39
Speaker 7: Genci beas Quade wide senor to Terry Brandstad.
00:17:44
Speaker 1: Terry Brandstad the governor of Iowa at the time and eventually US Ambassador to China during Trump's first presidency. Pallas says they all went to soccer games together a lot. Pallas says it was Brand's dad who introduced him to Bruce Restetter.
00:18:01
Speaker 6: Bruce Kale, CEO the empres and Fundador.
00:18:05
Speaker 9: Bruce is the CEO of the company the founder. He has a huge passion for pigs and has been involved with pigs his whole life. He was a pig farmer until he started getting into ethanol, which is a very recent thing. I don't know whether, just to clarify, Americans produce more ethanol from corn than we do from sugarcane. There the philosophy, the culture is producing ethanol from corn. So as president, I met with this Terry Bernstadt, who was the governor of Iowa. We met and he wanted to buy some land here in Brazil.
00:18:38
Speaker 1: Bruce doesn't mention any of this when he's asked about how he wound up in Brazil. Here's how we talked about it on a farming podcast a couple of years ago.
00:18:46
Speaker 5: So when we sold Hawkeye to Coke Industries.
00:18:50
Speaker 1: That was one of his ethnol companies there.
00:18:53
Speaker 5: Freed me up for the first time to do other things outside of being responsible for a larger company, and started traveling to Brazil.
00:19:02
Speaker 1: This is how Bruce talks about it in other interviews too. He was interested in Brazil because it's the main agricultural competitive or to the US, or because other US companies had done well there, et cetera, et cetera. It was when we were trying to verify Bruce and Paolo's differing versions of this story that our brazil editor, Alisi Desusa found a guy with yet another version.
00:19:29
Speaker 10: Is this prost and all?
00:19:31
Speaker 5: Are you tree huggers?
00:19:33
Speaker 10: Are you looking at this from a negative standpoint or are you looking at it from a neutral standpoint? I don't mind being neutral.
00:19:41
Speaker 5: I can be critical of this too.
00:19:43
Speaker 10: Yeah, but because clients of mine have invested in offers of a billion dollars now in mar pro Grosso, I don't want to fuck this up.
00:19:52
Speaker 1: That's Corey Melby, an agriculture consultant in Brazil.
00:19:56
Speaker 10: I came from Northwest Minnesota, developing land. So of course when in the early two thousands, when my pro Grosso and all of this Sifebian expansion was taking place, I was going to be the land guy for a group from some of the first guys I went down with, you're going to be here, Corey, bick up the language, back up the contacts.
00:20:16
Speaker 5: You could be the real estate guy.
00:20:18
Speaker 10: So that's where I started was from that.
00:20:21
Speaker 1: Perspective full disclosure. We paid Corey Melody to be a fixer for us on the ground in Mato Grosso. The idea was that he would take us around and ideally arrange a meeting with the brothers Franz at their farm. None of that ended up panning out, but he did talk to Philippi and I and he told us a lot about how Bruce started out in Brazil. He also added me to his newsletter list, which is a wealth of acknowledge about Brazil. Although it comes out so many times a week, I still have about five hundred unread emails in a folder marked Corey.
00:20:58
Speaker 10: So I've been on every firement by Grosso, I wrote the Boom Times and the bus and the boom times and the bus again with all my friends. You know, I have that twenty five year arc of experience now of the good, bad and ugly of Macrocross.
00:21:17
Speaker 5: I believe me, there's plenty of all of it.
00:21:20
Speaker 1: He knows a lot about Bruce and the Frowns brothers because he did for Bruce what he's done for the past twenty five years. For other Americans looking to get into the agg business in monte Grosso. He turned them around looking for land.
00:21:32
Speaker 10: Back in twenty eleven, I was visiting Louis bat and he was a young, dynamic guy, and he was at Corny.
00:21:39
Speaker 5: We're we're looking to develop.
00:21:41
Speaker 10: A corn a corn oil mill processing and investors.
00:21:49
Speaker 11: Or a partner in that.
00:21:51
Speaker 5: Corn oil.
00:21:52
Speaker 6: So I was.
00:21:53
Speaker 10: Writing about this BS and my newsletters at the time and also visiting him Lucas deo Verde at the elevators at the time, Doctor to Climber's, Oh corn corn, we got to get corn Haseno or went to burry our Elms.
00:22:12
Speaker 1: Because of his newsletter and his ties to various American at folks, Corey has kind of become known as the guy to call if you're an American who wants to give a sense of Manto Grusso. So when people started talking about corn ethanol there, it was only a matter of time before he got a call from you know who, Summit.
00:22:31
Speaker 5: From Iowa, which I'm sure you are very familiar with. Bruce rash Letter and Eric and then.
00:22:36
Speaker 12: The little Club.
00:22:37
Speaker 5: I get it all from Bruce's email.
00:22:40
Speaker 1: Hey, we would like a tour of.
00:22:45
Speaker 11: Uh, we're going to be down there for another reason.
00:22:49
Speaker 5: Could could we do something.
00:22:51
Speaker 6: All up cart.
00:22:53
Speaker 1: They didn't want to take one of Corey's prepackaged ag tours.
00:22:57
Speaker 10: Okay, so this is twenty eleven.
00:23:01
Speaker 5: We do a little power here, they go home. I figured out just another tour.
00:23:06
Speaker 11: Uh, we're looking at land loved to get.
00:23:12
Speaker 1: Corey carried on, thinking nothing of it. But six months or so later he got a call from some friends in Manto Russo.
00:23:18
Speaker 10: My third sond the fans, you know, they were Cory.
00:23:23
Speaker 5: We we wanted to get an ethanol now went out here.
00:23:26
Speaker 10: But we needed help.
00:23:28
Speaker 5: We need America, we need.
00:23:31
Speaker 10: So I was telling Bruce, and.
00:23:34
Speaker 11: You know I've got friends, i'ms.
00:23:38
Speaker 1: According to Corey, at the time, Bruce and the guys weren't quite ready to get into the ethanol business in Brazil. They were just looking for some farmland. Then they came back for another trip, and as Corey tells it, this is when they met the Franzis.
00:23:54
Speaker 4: All.
00:23:54
Speaker 5: All of a sudden, we got a farm for sale.
00:23:59
Speaker 1: Corey helped broker the deal between Bruce and the Franzas, and it kept them all.
00:24:03
Speaker 11: Talking three years on this nown farm. But that farm for just then opened the door with dressed and capable. Hey, let's let's build an athanhov Though and Lucas together.
00:24:17
Speaker 1: The Fronz brothers had hit the big time. They were getting into business with the ethanol kingpen of Iowa. It was a whole new level. Whereas Cory calls it, cycle three.
00:24:28
Speaker 10: Cycle one is deforestation in cattle. Cycle two is song. Cycle two point five is so a corn basically, you know the combination. Cycle three now gets to the what we would say industrial or added value.
00:24:48
Speaker 1: No different than Iowa. For the Fronz brothers, Bruce was a white whale at a time of booming Brazilian industrial agriculture. He happened to have some free time on his hands. And now this international king of corn had picked them. What luck. But that story misses one important detail. At the time he was doing land tours in Brazil, Bruce Rasstutter was having a really bad time back home in Iowa.
00:25:16
Speaker 3: Since twenty twelve, since that big land grab attempt in Africa, he has become a dirty word in Iowa.
00:25:24
Speaker 1: It's just that's what he does. It's like his business model, you know.
00:25:28
Speaker 2: And whether it was in Iowa with you know, how he was treating Iowa.
00:25:33
Speaker 1: Farmers or now it's globally. Yeah, he just keeps pushing his business advancement right. It's aw about his corporate profits.
00:25:41
Speaker 12: Friends of friends have said that he's kind of over Iowa and more interested in Brazil, which I mean, I suppose if I was in issues, if I had the choice of, you know, being at a place where everybody hated me, in a place where people flwnd over me, I'd probably go to the people flawnd over me.
00:25:55
Speaker 1: That's our story. Next time, we reached out to Bruce Rastutter, Harold Ham, the Frownz Brothers, Miguel Las Robero, and all Summit companies and Brazilian government agencies mentioned in this season for comment and have incorporated any responses we received throughout the season.
00:26:16
Speaker 6: Carbon Cowboys. Cowboys of the Sejadu is a collaboration between Drilled and The Intercept to Brazil.
00:26:22
Speaker 1: The show was reported and written by Philippe Sabrina and me Amy Westervelt.
00:26:28
Speaker 6: Our editors are Audrey Quin in the US and Alicia DeSouza in Brazil.
00:26:33
Speaker 1: Our senior producer and sound designer is Martin saltz Ostwek. Audio production and sound design in Brazil by Marcia Heberdoza and Philippe MoOx.
00:26:43
Speaker 6: Our impact producer is Lindsay Crowder. Theme song and original music by Eric Terna.
00:26:50
Speaker 1: Additional music by Martin saltz Ostwek. Our engineer is Peter Duff.
00:26:55
Speaker 6: Artwork for Drilled is by Matt Fleming.
00:26:57
Speaker 1: US fact checking from Naomi Bar Brazil.
00:27:01
Speaker 6: Fact checking by Studio Frontea.
00:27:03
Speaker 1: Our First Amendment attorney is James Wheaton with the First Amendment Project. We are also proud men of Reporter Shield. Big thanks also to Andrew Fishman, president of The Intercept Brazil.
00:27:16
Speaker 6: Drield is distributed by Pushkin Industries.
00:27:19
Speaker 1: Huge thanks to the team there, including Greta Cohen, Eric Sandler, Grace Ross, Morgan Ratner, Owen Miller, Kira Posey, Jordan McMillan, Brian Treberneck, and Jake Flanagan. To hear the Portuguese version of this series, head over to The Intercept Brazil's site, or search for The Intercept Brazil's podcast feed wherever you listen to podcasts.
Speaker 1: Pushkin Hey listeners, Amy here, I'm dropping into your feed today to bring you a preview of the new season of my podcast Drilled. As a longtime climate journalist, I've been hearing for at least twenty years that the markets will solve climate change. On this season of Drilled, we look at where that approach has landed us, following an ethanol kingpin and carbon entrepreneur from Iowa to Brazil and asking is this really helping anything? I hope you enjoy it and if you do, find Drilled carbon cowboys wherever you listen to your podcasts. Pushkin Plus subscribers can hear episodes early in ad free sign up on the Drilled show page on Apple or Pushkin dot fm, slash Plus. In early September twenty twenty five, a handful of Brazilian government officials headed to North Dakota on a mission. It was a technical mission. They were there to see a shiny new green technology in action. The idea behind this new technology was simple, when you turn corn into ethanol, it generates carbon dioxide and that's a problem if you're trying to be a green fuel. But now people from Iowa to North Dakota were capturing that carbon dioxide, storing it and selling it. Never mind that they were selling it to people who would inject it underground to get broil out. Some of it would surely still stay underground, and if you tilted your head and squinted a bit, that made it a climate solution. The American company selling the Brazilians on this idea had a lot writing on these officials, believing that carbon capture connected to ethanol was a great green success story when when for industry in the environment an American dream they can take home to Brazil. But had the visiting bureaucrats scan the local newspapers, they might have found a different story. If you live in Iowa, your land, your water, and your voice could all be at risk thanks to a man named Bruce Rastetter.
00:02:28
Speaker 2: You know, essentially paying him to capture CO two at ethanol plants and then shipping it across private land and public land and then disposing of it somewhere many states away.
00:02:44
Speaker 1: On September second, the Brazilian contingent met with an Iowa company called Summit Carbon Solutions. Summit has been trying for years to build a carbon capture pipeline to connect dozens of ethanol plants from Iowa to North Dakota. It's called the Midwest Carbon Express Project. Harold Ham, who can rolls many of North Dakota's oil fields and is an energy advisor to President Trump, is a major investor in the company. Bruce Rasstetter is the company's co founder. He's also a founder and executive chairman of its parent company, Summit Agricultural Group. For other cheerleading of the project to visitors, the Summit pipeline is years behind schedule and facing multiple political and legal roadblocks. In fact, it's managed to do almost no politician issue or campaign has been able to do in the US for years. United far left and far right populous people from both sides hate this pipeline. For rast Utter, it's not the first time he's faced opposition, especially in his home state of Iowa.
00:03:59
Speaker 3: Anyone who remotely follows politics or agriculture, you say Raftetter, You're going to get a response.
00:04:06
Speaker 1: Jess Masur is the conservation coordinator for the Sierra Club Iowa. For just the Carbon Pipeline was not the first time she'd dealt with Bruce rast At.
00:04:15
Speaker 3: Her they know who it is, and they go, oh, you know that guy, did this so that guy put a factory farm near my house, or he's the one that you know, got Iowa State in trouble. So I think everyone's got an.
00:04:26
Speaker 1: Opinion of him.
00:04:27
Speaker 3: And he's really really good at being able to avoid ever having to be in the public. He doesn't get interviewed, he doesn't take media requests. Kind of secret if he lives out in the middle of nowhere in Hardin County, Iowa.
00:04:43
Speaker 1: Rastutter got his start as a big hog farmer. From there, it wasn't a big leap to growing corn, and then, like a lot of corn growers, that led quickly to getting into the corn ethanol business. As a longtime climate reporter, I keep waiting for people to stop calling corn ethanol green. Its current footprint is similar to regular old guess. It requires around thirty times as much land as solar, plus lots of water and chemical pesticides and fertilizers. But industrial agriculture gets loads of substitutes from it, so they're always finding a way to keep it alive, and in twenty twenty two, Congress handed it its latest lifeline.
00:05:29
Speaker 4: The Inflation Reduction Act contains some really incredible things for our shareholders. It contains sustainable aviation fuel. We think that's an incredible part of decarbonizing the planet.
00:05:41
Speaker 1: The Infletion Reduction Act, Biden's big climate policy created a whole new revenue stream for the corn athmol guys. Now they could sell to airlines, but only if they embraced carbon capture. Bruce Restetter to the rescue, so I.
00:05:58
Speaker 5: Think without continuing to attain new markets, thethnol industries in jeopardy. So that's what lowering carbon scores. This project on the pipeline is about. With thirty four ethanol plants across the Upper Midwest, but in particular Iowa.
00:06:15
Speaker 1: Some at Carbon Solutions still talks about the project today as a way to open up new markets for Iowa corn farmers. So the company was caught off guard when people across multiple states began organizing against the Midwest Carbon Express and it quickly became a big problem because Rastetter was not just the ethanol kingpin of Iowa. His company was also the majority owner of a Brazilian ag company, FS Fueling Sustainability, and he'd helped to make corn ethanol a thing in Brazil too. Now SMIT is trying to make carbon capture happen there too. Welcome to Drilled Season fifteen, Carbon Cowboys. I'm Amy Westervelt and this season We've partnered with the amazing reporters at the Intercept Brazil to learn more about what Rastetter is doing down there.
00:07:09
Speaker 6: I'm Filippe Sabrina with the Interceptor Brazil. I will be hosting the Portuguese version of the season over on the Intercept to Brazil Feed. This is a story about how the ethanol kingpin of Iowa became the king of corn in Brazil, and how.
00:07:24
Speaker 1: A bunch of ideas that are great for the oil and egg industries got rebranded as Climate Solutions and created a carbon gold rush.
00:07:38
Speaker 6: Think maganin as you think port could you consider you?
00:07:41
Speaker 1: A few months ago, Philippe started telling me about this giant pig statue that greets people near Bruce Rastutter's home base in Brazil. Because yes, his partners in Brazil also started out as pig farmers. These guys are all still in the pig business, and boy do they love pigs. When Philippe sent me a picture of this pig statue, I was kind of shook. If you're imagining some sort of tasteful bronze statue. Think again. This is a massive orky pig looking thing wearing laterhosen and a bright green hat, holding a corn cob.
00:08:17
Speaker 6: And it even has a name Lucina or Little Lucas because the town is called Lucas do Hill Virgi. It tells you actually a lot about this place. It was proposed by one of the largest landowners in the area, big agriculture business guy. He comes from a German family, which is why the pig is wearing a German outfit. Around fifty years ago, the Brazilian agriculture industry came to this place looking for a cheap and easy land grab. Today the American agriculture industry is doing the same thing.
00:08:51
Speaker 1: Vusista in Lucas do Hill Virgi asid dojigi opportunidadjis aki ajasujin priguzali do did you leave the same kopram? This audio you're listening to with the epic background music is from a promotional video by the Lucas Story of ViRGE City government highlight the wonders of the city. The video mixes images of the caause forests in the sunset and large cotton, soybean and cornfields. The city government wants you to know that Lucas is the city of opportunities. It has more than ninety five thousand inhabitants and produces more than two million tons of grain per year. The narrator of the video says, we are one of the fastest growing cities in Brazil, and then this screen fills with a mix of smiling children, crops and grain pouring out of machines. Lucas the realerge is all money, growth and seas of corn and soybeans as far as the eye can see.
00:09:49
Speaker 6: The first time I visited, it shocked me to see massive crops right next to people's homes. But the more I learned about Lucas, the more it made sense. The town is a fiction designed and built by the government to impose development on this region. Lucas was in really created to serve agriculture and its owners. The wide avenues are lined with silos, agricultural machinery, stores, supply stores, credit banks, and real state agencies. Trucks over twenty meters long, loaded with soybeans or corn have plenty of space to drive around or park on the curb. Walking in Lucas, on the other hand, is a challenge because of the distances between the long avenues, the heat, and the lack of trees to provide shade. The city is obsessed with imperial palm trees. There are hundreds of them in the town center and on the sides of the roads. With nothing but monoculture crops and important palm trees, there is no vegetation in the area to insulate it from extreme temperature changes. Lucas can go from freezing code to unbelievably hot from one moment to the next. It was weird for me, but the people I spoke with here didn't seem to mind. The image of abundant harvests has drawn people from all over the country to Lucas.
00:11:22
Speaker 3: All right, going from yeah yeah think.
00:11:25
Speaker 7: My husband was n't employed for two years. Then we saw reports about the city, which is a very good place to leave to raise children, even in terms of violence, so we packed all bags.
00:11:38
Speaker 1: Isabella is from Ministerized, a Brazilian state southeast of Lucas, but since twenty twenty one she's been living here with her husband and children. She sells Asai e bowls in front of the parking lot of a multinational grain company. Assai is a fruit typical of the Amazon. Isabella buys it from suppliers and sells it to truck drivers who load and unload grain. Here, she passes small bowls of Asai cream through the fence and the truckers passed back cash. Isabelle said Lucas is great, not least because when she needs to take her kids to a public hospital, she never waits more than an hour to be seen.
00:12:19
Speaker 7: In the city. I don't think anyone can complain about health.
00:12:23
Speaker 1: Care, She says that Lucas, the Rio Verge hospital s Lucas in particular, is especially nice. It's run today by a partnership between the city and agribusiness entrepreneurs.
00:12:40
Speaker 7: Now they've opened a really nice word that to the whole hospital has been renovated.
00:12:49
Speaker 8: Apart I supposed to Lucas Maternity for you is passed by a properson existens.
00:13:02
Speaker 1: In fact, the new maternity ward at the saw Lucas Hospital has a promotional video too, and a few seconds into it, listeners might recognize a not so Brazilian sounding name.
00:13:14
Speaker 8: North American Bruce Hast.
00:13:18
Speaker 1: Bruce Restedter, the ethanol kingpin of Iowa. He wields a lot of power there, but outside the state, he's not exactly a household name. Now suddenly a new wing in the hospital in this Brazilian farm town was being named after this guy. How did that happen?
00:13:39
Speaker 6: The hospital canceled my tour just before I arrived, so our producer marcaver does and I just showed up to see what we could see. We talked to a hospital worker in the hallway.
00:14:02
Speaker 1: It's a little hard to hear there because Philippe and Marcia were trying to tape with their phone, and of course she's speaking in Portuguese too, But when they asked her about the name of the ward, the Bruce rast at her wing, she said it was named after Bruce, a doctor from Ohio. We're still not sure where she got that idea, but funding big public projects, especially around hospitals and healthcare, is really common in Brazil. You just heard how when telling Philippe about what she likes about Lucas, Isabella mentioned healthcare. People think of hospitals as an example of how nice a city is or how well it's working. So if Lucas has a good hospital, no one can say that the politicians or the businessmen running things here are bad. That goes double for anything that's focused on women and children. So a maternity ward checks a lot of boxes. And then we found out that the hospital is run by a foundation led by one of Rasstutter's Brazilian business partners, Marino Friends. Marino's brother Paulo was the one that proposed that giant pig statue that looks out over Lucas. And to understand how rastatter the American farmer ended up with a Brazilian rural maternity war named after him, we had to figure out how the Franz brothers fit into it, and what brought Bruce to Brazil in the first place. That's gonna yet after the break. Lucas to Rio Verge is in the Brazilian state of Mato Grosso, a state that is almost exactly half agriculture and half Amazon rainforest. It used to be even more Amazon. For decades, the state was considered the frontier in Brazil. The forests were preserved and it was home to even more indigenous people than it is today. But in the nineteen sixties and nineteen seventies, Brazil's military government deployed a new strategy was called the National Integration Plan. The idea was too eliminate indigenous communities that were seen as anti development and integrate the north and midwest of Brazil into the national economy.
00:16:19
Speaker 8: Seldom sada Architomba is grabbed.
00:16:22
Speaker 3: You might study of play, he said, antitask on that level community.
00:16:27
Speaker 1: This propaganda film from the seventies celebrates the quote revolution reaching the jungle, toppling trees in favor of roads. The goal was to develop the Amazon by building infrastructure in the wilderness, displacing indigenous residents and encouraging people from outside the region to move there, to be pioneers and go to this frontier and tainment. The main farm towns in Moto Grosso today were deliberate colonization projects, many of them built and funded by the Brazilian government. The government offered people plots of land, housing, and sometimes even credit to move there. They even funded research to figure out how crops like soybeans and cotton could be grown in the tropical climate there. That's what brought the Franz brothers there decades ago, and according to Paolo, it's the Franz brothers who brought Bruce to the area. In Paolo's telling, it all happened because of an internship he did in Iowa and an important contact he made there. Here he is talking about it on a Brazilian podcasts.
00:17:39
Speaker 7: Genci beas Quade wide senor to Terry Brandstad.
00:17:44
Speaker 1: Terry Brandstad the governor of Iowa at the time and eventually US Ambassador to China during Trump's first presidency. Pallas says they all went to soccer games together a lot. Pallas says it was Brand's dad who introduced him to Bruce Restetter.
00:18:01
Speaker 6: Bruce Kale, CEO the empres and Fundador.
00:18:05
Speaker 9: Bruce is the CEO of the company the founder. He has a huge passion for pigs and has been involved with pigs his whole life. He was a pig farmer until he started getting into ethanol, which is a very recent thing. I don't know whether, just to clarify, Americans produce more ethanol from corn than we do from sugarcane. There the philosophy, the culture is producing ethanol from corn. So as president, I met with this Terry Bernstadt, who was the governor of Iowa. We met and he wanted to buy some land here in Brazil.
00:18:38
Speaker 1: Bruce doesn't mention any of this when he's asked about how he wound up in Brazil. Here's how we talked about it on a farming podcast a couple of years ago.
00:18:46
Speaker 5: So when we sold Hawkeye to Coke Industries.
00:18:50
Speaker 1: That was one of his ethnol companies there.
00:18:53
Speaker 5: Freed me up for the first time to do other things outside of being responsible for a larger company, and started traveling to Brazil.
00:19:02
Speaker 1: This is how Bruce talks about it in other interviews too. He was interested in Brazil because it's the main agricultural competitive or to the US, or because other US companies had done well there, et cetera, et cetera. It was when we were trying to verify Bruce and Paolo's differing versions of this story that our brazil editor, Alisi Desusa found a guy with yet another version.
00:19:29
Speaker 10: Is this prost and all?
00:19:31
Speaker 5: Are you tree huggers?
00:19:33
Speaker 10: Are you looking at this from a negative standpoint or are you looking at it from a neutral standpoint? I don't mind being neutral.
00:19:41
Speaker 5: I can be critical of this too.
00:19:43
Speaker 10: Yeah, but because clients of mine have invested in offers of a billion dollars now in mar pro Grosso, I don't want to fuck this up.
00:19:52
Speaker 1: That's Corey Melby, an agriculture consultant in Brazil.
00:19:56
Speaker 10: I came from Northwest Minnesota, developing land. So of course when in the early two thousands, when my pro Grosso and all of this Sifebian expansion was taking place, I was going to be the land guy for a group from some of the first guys I went down with, you're going to be here, Corey, bick up the language, back up the contacts.
00:20:16
Speaker 5: You could be the real estate guy.
00:20:18
Speaker 10: So that's where I started was from that.
00:20:21
Speaker 1: Perspective full disclosure. We paid Corey Melody to be a fixer for us on the ground in Mato Grosso. The idea was that he would take us around and ideally arrange a meeting with the brothers Franz at their farm. None of that ended up panning out, but he did talk to Philippi and I and he told us a lot about how Bruce started out in Brazil. He also added me to his newsletter list, which is a wealth of acknowledge about Brazil. Although it comes out so many times a week, I still have about five hundred unread emails in a folder marked Corey.
00:20:58
Speaker 10: So I've been on every firement by Grosso, I wrote the Boom Times and the bus and the boom times and the bus again with all my friends. You know, I have that twenty five year arc of experience now of the good, bad and ugly of Macrocross.
00:21:17
Speaker 5: I believe me, there's plenty of all of it.
00:21:20
Speaker 1: He knows a lot about Bruce and the Frowns brothers because he did for Bruce what he's done for the past twenty five years. For other Americans looking to get into the agg business in monte Grosso. He turned them around looking for land.
00:21:32
Speaker 10: Back in twenty eleven, I was visiting Louis bat and he was a young, dynamic guy, and he was at Corny.
00:21:39
Speaker 5: We're we're looking to develop.
00:21:41
Speaker 10: A corn a corn oil mill processing and investors.
00:21:49
Speaker 11: Or a partner in that.
00:21:51
Speaker 5: Corn oil.
00:21:52
Speaker 6: So I was.
00:21:53
Speaker 10: Writing about this BS and my newsletters at the time and also visiting him Lucas deo Verde at the elevators at the time, Doctor to Climber's, Oh corn corn, we got to get corn Haseno or went to burry our Elms.
00:22:12
Speaker 1: Because of his newsletter and his ties to various American at folks, Corey has kind of become known as the guy to call if you're an American who wants to give a sense of Manto Grusso. So when people started talking about corn ethanol there, it was only a matter of time before he got a call from you know who, Summit.
00:22:31
Speaker 5: From Iowa, which I'm sure you are very familiar with. Bruce rash Letter and Eric and then.
00:22:36
Speaker 12: The little Club.
00:22:37
Speaker 5: I get it all from Bruce's email.
00:22:40
Speaker 1: Hey, we would like a tour of.
00:22:45
Speaker 11: Uh, we're going to be down there for another reason.
00:22:49
Speaker 5: Could could we do something.
00:22:51
Speaker 6: All up cart.
00:22:53
Speaker 1: They didn't want to take one of Corey's prepackaged ag tours.
00:22:57
Speaker 10: Okay, so this is twenty eleven.
00:23:01
Speaker 5: We do a little power here, they go home. I figured out just another tour.
00:23:06
Speaker 11: Uh, we're looking at land loved to get.
00:23:12
Speaker 1: Corey carried on, thinking nothing of it. But six months or so later he got a call from some friends in Manto Russo.
00:23:18
Speaker 10: My third sond the fans, you know, they were Cory.
00:23:23
Speaker 5: We we wanted to get an ethanol now went out here.
00:23:26
Speaker 10: But we needed help.
00:23:28
Speaker 5: We need America, we need.
00:23:31
Speaker 10: So I was telling Bruce, and.
00:23:34
Speaker 11: You know I've got friends, i'ms.
00:23:38
Speaker 1: According to Corey, at the time, Bruce and the guys weren't quite ready to get into the ethanol business in Brazil. They were just looking for some farmland. Then they came back for another trip, and as Corey tells it, this is when they met the Franzis.
00:23:54
Speaker 4: All.
00:23:54
Speaker 5: All of a sudden, we got a farm for sale.
00:23:59
Speaker 1: Corey helped broker the deal between Bruce and the Franzas, and it kept them all.
00:24:03
Speaker 11: Talking three years on this nown farm. But that farm for just then opened the door with dressed and capable. Hey, let's let's build an athanhov Though and Lucas together.
00:24:17
Speaker 1: The Fronz brothers had hit the big time. They were getting into business with the ethanol kingpen of Iowa. It was a whole new level. Whereas Cory calls it, cycle three.
00:24:28
Speaker 10: Cycle one is deforestation in cattle. Cycle two is song. Cycle two point five is so a corn basically, you know the combination. Cycle three now gets to the what we would say industrial or added value.
00:24:48
Speaker 1: No different than Iowa. For the Fronz brothers, Bruce was a white whale at a time of booming Brazilian industrial agriculture. He happened to have some free time on his hands. And now this international king of corn had picked them. What luck. But that story misses one important detail. At the time he was doing land tours in Brazil, Bruce Rasstutter was having a really bad time back home in Iowa.
00:25:16
Speaker 3: Since twenty twelve, since that big land grab attempt in Africa, he has become a dirty word in Iowa.
00:25:24
Speaker 1: It's just that's what he does. It's like his business model, you know.
00:25:28
Speaker 2: And whether it was in Iowa with you know, how he was treating Iowa.
00:25:33
Speaker 1: Farmers or now it's globally. Yeah, he just keeps pushing his business advancement right. It's aw about his corporate profits.
00:25:41
Speaker 12: Friends of friends have said that he's kind of over Iowa and more interested in Brazil, which I mean, I suppose if I was in issues, if I had the choice of, you know, being at a place where everybody hated me, in a place where people flwnd over me, I'd probably go to the people flawnd over me.
00:25:55
Speaker 1: That's our story. Next time, we reached out to Bruce Rastutter, Harold Ham, the Frownz Brothers, Miguel Las Robero, and all Summit companies and Brazilian government agencies mentioned in this season for comment and have incorporated any responses we received throughout the season.
00:26:16
Speaker 6: Carbon Cowboys. Cowboys of the Sejadu is a collaboration between Drilled and The Intercept to Brazil.
00:26:22
Speaker 1: The show was reported and written by Philippe Sabrina and me Amy Westervelt.
00:26:28
Speaker 6: Our editors are Audrey Quin in the US and Alicia DeSouza in Brazil.
00:26:33
Speaker 1: Our senior producer and sound designer is Martin saltz Ostwek. Audio production and sound design in Brazil by Marcia Heberdoza and Philippe MoOx.
00:26:43
Speaker 6: Our impact producer is Lindsay Crowder. Theme song and original music by Eric Terna.
00:26:50
Speaker 1: Additional music by Martin saltz Ostwek. Our engineer is Peter Duff.
00:26:55
Speaker 6: Artwork for Drilled is by Matt Fleming.
00:26:57
Speaker 1: US fact checking from Naomi Bar Brazil.
00:27:01
Speaker 6: Fact checking by Studio Frontea.
00:27:03
Speaker 1: Our First Amendment attorney is James Wheaton with the First Amendment Project. We are also proud men of Reporter Shield. Big thanks also to Andrew Fishman, president of The Intercept Brazil.
00:27:16
Speaker 6: Drield is distributed by Pushkin Industries.
00:27:19
Speaker 1: Huge thanks to the team there, including Greta Cohen, Eric Sandler, Grace Ross, Morgan Ratner, Owen Miller, Kira Posey, Jordan McMillan, Brian Treberneck, and Jake Flanagan. To hear the Portuguese version of this series, head over to The Intercept Brazil's site, or search for The Intercept Brazil's podcast feed wherever you listen to podcasts.
