It is never too early to talk about the next presidential election and the Iowa Caucuses, where rural and agricultural issues often get more media focus.

One area of particular interest that politicians often refer to when traveling in Iowa, or preparing to campaign there, is ethanol and renewable energy.

The New York Times recently reported that New York Gov. George E. Pataki in his State of the State address, “made a pitch for ethanol, an alternative fuel made from corn that is beloved in Iowa, which happens to also be the home of the first presidential caucus.”

However, in a time of relatively high energy prices, Middle Eastern instability and increased focus on trade compliance, renewable energy issues could potentially garner more than the normal amount of attention from potential Presidential candidates like Gov. Pataki

In one indication of the importance of the renewable energy issue, New York Times Op-Ed columnist Thomas L. Friedman recently commented that “making ourselves energy efficient and independent, and environmentally green,” could be “the most important issue in U.S. foreign and domestic policy today.”

To the extent that the average voter can connect ethanol and other farm based forms of energy to addressing “the most important issue in U.S. foreign and domestic policy today,” politicians could see a change in attitude with respect to allocating federal tax dollars to various types of federal farm subsidies.

In addition to the warmer reception the general public may give these types of federal support, some farm policy observers point out that ethanol subsidies are also W.T.O. compliant, or non-trade distorting.

Yesterday’s Argues Leader (S.D) included this quote, from Brian Jennings, from the American Coalition for Ethanol, “There is nothing we do in the U.S. to support ethanol that is trade distorting.”

In addition to environmental programs, and rural development, agricultural observers should keep an eye on the increasingly important issue of renewable energy.

Keith Good writes The FarmPolicy.com News Summary, an Email newsletter containing a summary of news relating to U.S. farm policy which is published most weekdays. For more information, go to www.FarmPolicy.com.