1 00:00:17,242 --> 00:00:31,762 Speaker 1: Pushkin. In early September twenty twenty five, a handful of 2 00:00:31,762 --> 00:00:36,162 Speaker 1: Brazilian government officials headed to North Dakota on a mission. 3 00:00:36,962 --> 00:00:39,522 Speaker 1: It was a technical mission. They were there to see 4 00:00:39,562 --> 00:00:44,642 Speaker 1: a shiny new green technology in action. The idea behind 5 00:00:44,682 --> 00:00:49,082 Speaker 1: this new technology was simple. When you turn corn into ethanol, 6 00:00:49,322 --> 00:00:53,162 Speaker 1: it generates carbon dioxide, and that's the problem if you're 7 00:00:53,202 --> 00:00:56,842 Speaker 1: trying to be a green fuel. But now people from 8 00:00:56,882 --> 00:01:01,522 Speaker 1: Iowa to North Dakota were capturing that carbon dioxide, storing 9 00:01:01,562 --> 00:01:05,441 Speaker 1: it and selling it. Never mind that they were selling 10 00:01:05,482 --> 00:01:08,521 Speaker 1: it to people who would inject it underground to get 11 00:01:08,682 --> 00:01:12,442 Speaker 1: oil out, some of it would surely still stay underground. 12 00:01:12,602 --> 00:01:15,562 Speaker 1: And if you tilted your head and squinted a bit, 13 00:01:15,922 --> 00:01:21,321 Speaker 1: that made it a climate solution. The American company selling 14 00:01:21,321 --> 00:01:24,762 Speaker 1: the Brazilians on this idea had a lot writing on 15 00:01:24,881 --> 00:01:29,402 Speaker 1: these officials, believing that carbon capture connected to ethanol was 16 00:01:29,441 --> 00:01:33,241 Speaker 1: a great green success story, win win for industry in 17 00:01:33,282 --> 00:01:36,722 Speaker 1: the environment, an American dream they could take home to Brazil. 18 00:01:37,762 --> 00:01:41,322 Speaker 1: But had the visiting bureaucrats scanned the local newspapers, they 19 00:01:41,402 --> 00:01:43,521 Speaker 1: might have found a different story. 20 00:01:44,081 --> 00:01:46,922 Speaker 2: If you live in Iowa, your land, your water, and 21 00:01:47,002 --> 00:01:49,362 Speaker 2: your voice could all be at risk thanks to a 22 00:01:49,402 --> 00:01:51,482 Speaker 2: man named Bruce Rastetter. 23 00:01:52,042 --> 00:01:57,562 Speaker 3: You know, essentially paying him to capture CO two at 24 00:01:57,602 --> 00:02:02,162 Speaker 3: ethanol plants and then shipping it across private land and 25 00:02:02,322 --> 00:02:07,242 Speaker 3: public land and then disposing of it somewhere many states away. 26 00:02:08,242 --> 00:02:11,642 Speaker 1: On September second, the Brazilian contingent met with an Iowa 27 00:02:11,722 --> 00:02:16,162 Speaker 1: company called Summit Carbon Solutions. Summit has been trying for 28 00:02:16,282 --> 00:02:19,562 Speaker 1: years to build a carbon capture pipeline to connect dozens 29 00:02:19,602 --> 00:02:23,802 Speaker 1: of ethanol plants from Iowa to North Dakota. It's called 30 00:02:24,082 --> 00:02:33,002 Speaker 1: the Midwest Carbon Express Project. Harold Ham, who controls many 31 00:02:33,082 --> 00:02:36,562 Speaker 1: of North Dakota's oil fields and is an energy advisor 32 00:02:36,602 --> 00:02:40,402 Speaker 1: to President Trump, is a major investor in the company. 33 00:02:40,642 --> 00:02:44,242 Speaker 1: Bruce Rastetter is the company's co founder. He's also a 34 00:02:44,242 --> 00:02:49,242 Speaker 1: founder and executive chairman of its parent company, Summit Agricultural Group. 35 00:02:49,962 --> 00:02:53,242 Speaker 1: For other cheerleading of the project to visitors, the Summit 36 00:02:53,322 --> 00:02:57,682 Speaker 1: pipeline is years behind schedule and facing multiple political and 37 00:02:57,802 --> 00:03:02,202 Speaker 1: legal roadblocks. In fact, it's managed to do almost no 38 00:03:02,442 --> 00:03:05,362 Speaker 1: politician issue or campaign has been able to do in 39 00:03:05,362 --> 00:03:09,121 Speaker 1: the US for years. United far left and far right 40 00:03:09,242 --> 00:03:16,722 Speaker 1: populous from both sides hate this pipeline. For rest Utter. 41 00:03:16,842 --> 00:03:20,362 Speaker 1: It's not the first time he's faced opposition, especially in 42 00:03:20,442 --> 00:03:21,962 Speaker 1: his home state of Iowa. 43 00:03:22,922 --> 00:03:27,802 Speaker 4: Anyone who remotely follows politics or agriculture, you say raft Stetter, 44 00:03:27,882 --> 00:03:29,002 Speaker 4: you're going to get a response. 45 00:03:29,522 --> 00:03:33,962 Speaker 1: Jess Mazur is the conservation coordinator for the Sierra Club Iowa. 46 00:03:34,042 --> 00:03:36,522 Speaker 1: For Jess, the carbon pipeline was not the first time 47 00:03:36,642 --> 00:03:39,762 Speaker 1: she'd dealt with Bruce Rastutter. They know who it is, 48 00:03:39,802 --> 00:03:41,922 Speaker 1: and they go, oh, you know that guy did this. 49 00:03:42,042 --> 00:03:44,162 Speaker 4: So that guy put a factory farm near my house, 50 00:03:44,282 --> 00:03:47,242 Speaker 4: or he's the one that you know, got Iowa state 51 00:03:47,282 --> 00:03:50,602 Speaker 4: in trouble. So I think everyone's got an opinion of him, 52 00:03:50,962 --> 00:03:54,162 Speaker 4: and he's really really good at being able to avoid 53 00:03:54,602 --> 00:03:58,762 Speaker 4: ever having to be in the public. He doesn't get interviewed, 54 00:03:58,762 --> 00:04:02,642 Speaker 4: he doesn't take media requests. Kind of secret if he 55 00:04:02,682 --> 00:04:06,122 Speaker 4: lives out in the middle of nowhere in Hardin County, Iowa. 56 00:04:06,602 --> 00:04:09,882 Speaker 1: Rastutter got his start as a big hog farmer. From there. 57 00:04:10,002 --> 00:04:12,442 Speaker 1: It wasn't a big leap to growing corn, and then, 58 00:04:12,682 --> 00:04:14,962 Speaker 1: like a lot of corn growers, that led quickly to 59 00:04:15,282 --> 00:04:23,402 Speaker 1: getting into the corn ethanol business. As a longtime climate reporter, 60 00:04:23,762 --> 00:04:28,002 Speaker 1: I keep waiting for people to stop calling corn ethanol Green. 61 00:04:28,802 --> 00:04:32,362 Speaker 1: Its carbon footprint is similar to regular gas. It requires 62 00:04:32,402 --> 00:04:37,162 Speaker 1: around thirty times as much land as solar, plus lots 63 00:04:37,162 --> 00:04:42,481 Speaker 1: of water and chemical pesticides and fertilizers. But industrial agriculture 64 00:04:42,602 --> 00:04:45,882 Speaker 1: gets loads of substitutes from it, so they're always finding 65 00:04:45,882 --> 00:04:48,562 Speaker 1: a way to keep it alive, and in twenty twenty two, 66 00:04:48,882 --> 00:04:52,242 Speaker 1: Congress handed it its latest lifeline. 67 00:04:52,722 --> 00:04:57,202 Speaker 2: The Inflation Reduction Act contains some really incredible things for 68 00:04:57,282 --> 00:05:01,322 Speaker 2: our shareholders. It contains sustainable aviation fuel. We think that's 69 00:05:01,362 --> 00:05:04,282 Speaker 2: an incredible part of decarbonizing the planet. 70 00:05:04,842 --> 00:05:08,962 Speaker 1: The Infletion Reduction Act, Biden's big climate policy, created a 71 00:05:09,002 --> 00:05:13,322 Speaker 1: whole new revenue stream for corn ethanol guys. Now they 72 00:05:13,322 --> 00:05:17,122 Speaker 1: could sell to airlines, but only if they embraced carbon capture. 73 00:05:17,762 --> 00:05:20,962 Speaker 1: Bruce Rastetter to the rescue. 74 00:05:21,322 --> 00:05:25,122 Speaker 5: So I think without continuing to attain new markets, the 75 00:05:25,202 --> 00:05:30,962 Speaker 5: ethanol industries in jeopardy. So that's what lowering carbon scores. 76 00:05:31,202 --> 00:05:35,082 Speaker 5: This project on the pipeline is about, with thirty four 77 00:05:35,162 --> 00:05:38,602 Speaker 5: ethanol plants across the Upper Midwest, but in particular. 78 00:05:38,162 --> 00:05:42,482 Speaker 1: Iowa Summit Carbon Solutions still talks about the project today 79 00:05:42,522 --> 00:05:44,882 Speaker 1: as a way to open up new markets for Iowa 80 00:05:45,002 --> 00:05:48,642 Speaker 1: corn farmers. So the company was caught off guard when 81 00:05:48,642 --> 00:05:54,282 Speaker 1: people across multiple states began organizing against the Midwest Carbon Express, 82 00:05:54,802 --> 00:05:58,442 Speaker 1: and it quickly became a big problem because Rastetter was 83 00:05:58,522 --> 00:06:02,762 Speaker 1: not just the ethanol kingpin of Iowa. His company was 84 00:06:02,802 --> 00:06:06,842 Speaker 1: also the majority owner of a Brazilian ag company, FS 85 00:06:06,882 --> 00:06:11,122 Speaker 1: Fueling Sustainability, and he'd helped to make corn ethanol a 86 00:06:11,242 --> 00:06:14,482 Speaker 1: thing in Brazil too. Now some it is trying to 87 00:06:14,522 --> 00:06:21,722 Speaker 1: make carbon capture happen there too. Welcome to Drilled Season fifteen, 88 00:06:22,162 --> 00:06:26,122 Speaker 1: Carbon Cowboys. I'm Amy Westervelt and this season we've partnered 89 00:06:26,122 --> 00:06:29,681 Speaker 1: with the amazing reporters at the Intercept Brazil to learn 90 00:06:29,722 --> 00:06:32,921 Speaker 1: more about what Rasstutter is doing down there. 91 00:06:33,242 --> 00:06:36,842 Speaker 6: I'm Filippe Sabrina with the Interceptor Brazil. I will be 92 00:06:36,882 --> 00:06:39,842 Speaker 6: hosting the Portuguese version of the season over on the 93 00:06:39,882 --> 00:06:43,481 Speaker 6: Intercept to Brazil Feed. This is a story about how 94 00:06:43,522 --> 00:06:47,042 Speaker 6: the ethanol kingpin of Iowa became the king of corn 95 00:06:47,082 --> 00:06:47,962 Speaker 6: in Brazil and. 96 00:06:47,962 --> 00:06:50,322 Speaker 1: How a bunch of ideas that are great for the 97 00:06:50,362 --> 00:06:54,242 Speaker 1: oil and ag industries got rebranded as climate solutions and 98 00:06:54,322 --> 00:07:00,842 Speaker 1: created a carbon gold rush. 99 00:07:01,362 --> 00:07:04,402 Speaker 7: Think maganin as Gonchi, Think port Could you consider you? 100 00:07:05,282 --> 00:07:07,882 Speaker 1: A few months ago Philippe started telling me about this 101 00:07:08,042 --> 00:07:12,842 Speaker 1: giant pig statue that greets people Bruce Rastutter's home base 102 00:07:13,002 --> 00:07:16,842 Speaker 1: in Brazil, because yes, his partners in Brazil also started 103 00:07:16,882 --> 00:07:20,362 Speaker 1: out as pig farmers. These guys are all still on 104 00:07:20,402 --> 00:07:23,402 Speaker 1: the pig business, and boy do they love pigs. When 105 00:07:23,402 --> 00:07:26,602 Speaker 1: Philippe sent me a picture of this pig statue, I 106 00:07:26,682 --> 00:07:29,482 Speaker 1: was kind of shook. If you're imagining some sort of 107 00:07:29,642 --> 00:07:34,962 Speaker 1: tasteful bronze statue, think again. This is a massive, orky 108 00:07:35,042 --> 00:07:38,482 Speaker 1: pig looking thing wearing laterhosen and a bright green hat, 109 00:07:38,882 --> 00:07:40,282 Speaker 1: holding a corn cob. 110 00:07:40,722 --> 00:07:45,082 Speaker 6: And it even has a name Lucina or Little Lucas 111 00:07:45,602 --> 00:07:49,202 Speaker 6: because the town is called Lucas do Hill Virji. It 112 00:07:49,322 --> 00:07:52,122 Speaker 6: tells you actually a lot about this place. It was 113 00:07:52,162 --> 00:07:55,002 Speaker 6: proposed by one of the largest landowners in the area, 114 00:07:55,482 --> 00:07:59,362 Speaker 6: big agriculture business guy. He comes from a German family, 115 00:07:59,442 --> 00:08:01,842 Speaker 6: which is why the pig is wearing a German outfit. 116 00:08:02,882 --> 00:08:06,562 Speaker 6: Around fifty years ago, the Brazilian agriculture industry came to 117 00:08:06,602 --> 00:08:10,042 Speaker 6: this place looking for a cheap and easy land grab. Today, 118 00:08:10,282 --> 00:08:13,202 Speaker 6: the American agriculture industry is doing the same thing. 119 00:08:14,842 --> 00:08:21,682 Speaker 1: Vusista in Lucas do Yu virgi asiddajigioportunidjis aki ajira sojin 120 00:08:21,722 --> 00:08:25,602 Speaker 1: pri gualidan Did you read the same kopram. This audio 121 00:08:25,642 --> 00:08:28,362 Speaker 1: you're listening to with the epic background music is from 122 00:08:28,362 --> 00:08:31,162 Speaker 1: a promotional video by the Lucas to Rio Verge city 123 00:08:31,202 --> 00:08:35,322 Speaker 1: government highlighting the wonders of the city. The video mixes 124 00:08:35,322 --> 00:08:39,641 Speaker 1: images of macause forests in the sunset and large cotton, 125 00:08:39,722 --> 00:08:43,561 Speaker 1: soybean and cornfields. The city government wants you to know 126 00:08:43,641 --> 00:08:47,561 Speaker 1: that Lucas is the city of opportunities. It has more 127 00:08:47,602 --> 00:08:50,922 Speaker 1: than ninety five thousand inhabitants and produces more than two 128 00:08:51,202 --> 00:08:54,801 Speaker 1: million tons of grain per year. The narrator of the 129 00:08:54,881 --> 00:08:57,881 Speaker 1: video says, we are one of the fastest growing cities 130 00:08:57,921 --> 00:09:00,761 Speaker 1: in Brazil, and then this screen fills with a mix 131 00:09:00,801 --> 00:09:06,482 Speaker 1: of smiling children, crops and grain pouring out of machines. Lucas, 132 00:09:06,482 --> 00:09:09,522 Speaker 1: the Rio Verge is all money, growth and seas of 133 00:09:09,681 --> 00:09:12,602 Speaker 1: corn and soybeans as far as the eye can see. 134 00:09:13,082 --> 00:09:15,881 Speaker 6: The first time I visited, it shocked me to see 135 00:09:16,002 --> 00:09:19,801 Speaker 6: massive crops right next to people's homes. But the more 136 00:09:19,921 --> 00:09:23,761 Speaker 6: I learned about Lucas, the more it made sense. The 137 00:09:23,801 --> 00:09:27,642 Speaker 6: town is a fiction designed and built by the government 138 00:09:27,801 --> 00:09:33,242 Speaker 6: to impose development on this region. Lucas was entirely created 139 00:09:33,281 --> 00:09:37,841 Speaker 6: to serve agriculture and its owners. The wide avenues are 140 00:09:37,881 --> 00:09:43,401 Speaker 6: lined with silos, agricultural machinery, stores, supply stores, credit banks, 141 00:09:43,442 --> 00:09:48,561 Speaker 6: and real state agencies. Trucks over twenty meters long, loaded 142 00:09:48,602 --> 00:09:52,442 Speaker 6: with soybeans or corn have plenty of space to drive 143 00:09:52,482 --> 00:09:56,362 Speaker 6: around or park on the curb. Walking in Lucas, on 144 00:09:56,401 --> 00:09:59,562 Speaker 6: the other hand, is a challenge because of the distances 145 00:09:59,602 --> 00:10:03,002 Speaker 6: between the long avenues, the heat, and the lack of 146 00:10:03,082 --> 00:10:08,201 Speaker 6: trees to provide shade. The city is obsessed with imperial 147 00:10:08,242 --> 00:10:12,362 Speaker 6: palm trees. There are hundreds of them in the town 148 00:10:12,442 --> 00:10:16,642 Speaker 6: center and on the sides of the roads. With nothing 149 00:10:16,881 --> 00:10:21,122 Speaker 6: but monoculture crops and important palm trees, there is no 150 00:10:21,242 --> 00:10:26,041 Speaker 6: vegetation in the area to insulate it from extreme temperature changes. 151 00:10:26,641 --> 00:10:31,681 Speaker 6: Lucas can go from freezing cold to unbelievably hot from 152 00:10:32,082 --> 00:10:34,721 Speaker 6: one moment to the next. It was weird for me, 153 00:10:35,122 --> 00:10:38,202 Speaker 6: but the people I spoke with here didn't seem to mind. 154 00:10:38,881 --> 00:10:42,961 Speaker 6: The image of abundant harvests has drawn people from all 155 00:10:43,002 --> 00:10:46,602 Speaker 6: over the country to Lucas all right. 156 00:10:46,962 --> 00:10:49,282 Speaker 1: Going from yeah, yeah, think. 157 00:10:49,242 --> 00:10:52,242 Speaker 8: My husband was un employed for two years. Then we 158 00:10:52,322 --> 00:10:54,802 Speaker 8: saw reports about the city, which is a very good 159 00:10:54,842 --> 00:10:58,401 Speaker 8: place to live to raise children, even in terms of violence, 160 00:10:58,842 --> 00:11:00,881 Speaker 8: so we packed all backs. 161 00:11:01,761 --> 00:11:06,641 Speaker 1: Isabella is from Ministerized, a Brazilian state southeast of Lucas, 162 00:11:06,921 --> 00:11:09,522 Speaker 1: but since twenty twenty one she's been living here with 163 00:11:09,602 --> 00:11:13,081 Speaker 1: her husband and children. She sells asa e bowls in 164 00:11:13,161 --> 00:11:16,082 Speaker 1: front of the parking lot of a multi national grain company. 165 00:11:16,602 --> 00:11:20,202 Speaker 1: Assai is a fruit typical of the Amazon. Isabella buys 166 00:11:20,202 --> 00:11:23,082 Speaker 1: it from suppliers and sells it to truck drivers who 167 00:11:23,161 --> 00:11:24,962 Speaker 1: load and unload grain. 168 00:11:25,082 --> 00:11:25,322 Speaker 7: Here. 169 00:11:26,082 --> 00:11:29,682 Speaker 1: She passes small bowls of asai cream through the fence 170 00:11:29,801 --> 00:11:34,442 Speaker 1: and the truckers passed back cash. Isabelle said Lucas is great, 171 00:11:34,801 --> 00:11:36,761 Speaker 1: not least because when she needs to take her kids 172 00:11:36,761 --> 00:11:39,242 Speaker 1: to a public hospital, she never waits more than an 173 00:11:39,281 --> 00:11:40,362 Speaker 1: hour to be seen. 174 00:11:43,122 --> 00:11:46,842 Speaker 8: In the city. I don't think anyone can complain about healthcare. 175 00:11:47,362 --> 00:11:50,362 Speaker 1: She says that Lucas, the Rio Verge Hospital SEW Lucas 176 00:11:50,521 --> 00:11:54,761 Speaker 1: in particular, is especially nice. It's run today by a 177 00:11:54,761 --> 00:12:03,081 Speaker 1: partnership between the city and agribusiness entrepreneurs. 178 00:12:04,242 --> 00:12:07,322 Speaker 8: Now they've opened a really nice word to the own 179 00:12:07,401 --> 00:12:09,761 Speaker 8: hospital has been renovated. 180 00:12:12,482 --> 00:12:18,802 Speaker 1: Apart I supposals Lucas ponta rakum nova ala atu CenTra 181 00:12:18,921 --> 00:12:22,922 Speaker 1: matarney for you who's passed by properson Resistencia. 182 00:12:24,401 --> 00:12:24,801 Speaker 9: Judus. 183 00:12:25,482 --> 00:12:28,321 Speaker 1: In fact, the new maternity ward at the saw Lucas 184 00:12:28,362 --> 00:12:31,682 Speaker 1: Hospital has a promotional video too, and a few seconds 185 00:12:31,722 --> 00:12:36,122 Speaker 1: into it, listeners might recognize a not so Brazilian sounding. 186 00:12:36,002 --> 00:12:40,162 Speaker 10: Name in North American Bruce Hasted. 187 00:12:41,921 --> 00:12:47,362 Speaker 1: Bruce Restedter, the ethanol kingpin of Iowa. He wields a 188 00:12:47,482 --> 00:12:50,922 Speaker 1: lot of power there, but outside the state he's not 189 00:12:51,041 --> 00:12:55,042 Speaker 1: exactly a household name. Now suddenly a new wing in 190 00:12:55,082 --> 00:12:58,761 Speaker 1: the hospital in this Brazilian farm town was being named 191 00:12:58,801 --> 00:13:01,162 Speaker 1: after this guy. How did that happen? 192 00:13:02,401 --> 00:13:06,042 Speaker 6: The hospital canceled my tour just before I arrived, so 193 00:13:06,242 --> 00:13:09,561 Speaker 6: our producer Marsa ever does and I just showed up 194 00:13:09,681 --> 00:13:12,162 Speaker 6: to see what we could see. We talk it to 195 00:13:12,281 --> 00:13:25,602 Speaker 6: a hospital worker in the hallway. 196 00:13:25,641 --> 00:13:28,002 Speaker 1: It's a little hard to hear there because Philippe and 197 00:13:28,082 --> 00:13:30,641 Speaker 1: Marcia were trying to tape with their phone, and of 198 00:13:30,641 --> 00:13:33,521 Speaker 1: course she's speaking in Portuguese too, But when they asked 199 00:13:33,561 --> 00:13:35,921 Speaker 1: her about the name of the ward, the Bruce rast 200 00:13:35,962 --> 00:13:38,442 Speaker 1: at her wing, she said it was named after Bruce, 201 00:13:38,561 --> 00:13:41,922 Speaker 1: a doctor from Ohio. We're still not sure where she 202 00:13:42,002 --> 00:13:47,201 Speaker 1: got that idea, but funding big public projects, especially around 203 00:13:47,281 --> 00:13:51,681 Speaker 1: hospitals and healthcare, is really common in Brazil. You just 204 00:13:51,761 --> 00:13:55,242 Speaker 1: heard how when telling Philippe about what she likes about Lucas, 205 00:13:55,401 --> 00:14:00,082 Speaker 1: Isabella mentioned healthcare. People think of hospitals as an example 206 00:14:00,161 --> 00:14:03,242 Speaker 1: of how nice a city is or how well it's working. 207 00:14:03,561 --> 00:14:06,362 Speaker 1: So if Lucas has a good hospital, no one can 208 00:14:06,401 --> 00:14:09,442 Speaker 1: say that the politicians or the businessmen running things here 209 00:14:09,561 --> 00:14:13,521 Speaker 1: are bad. That goes double for anything that's focused on 210 00:14:13,602 --> 00:14:17,122 Speaker 1: women and children. So a maternity ward checks a lot 211 00:14:17,161 --> 00:14:22,162 Speaker 1: of boxes. And then we found out that the hospital 212 00:14:22,282 --> 00:14:25,242 Speaker 1: is run by a foundation led by one of Rasstutter's 213 00:14:25,242 --> 00:14:29,882 Speaker 1: Brazilian business partners, Marino Franz. Marino's brother Paulo was the 214 00:14:29,882 --> 00:14:32,802 Speaker 1: one that proposed that giant pig statue that looks out 215 00:14:32,842 --> 00:14:36,482 Speaker 1: over Lucas. And to understand how Rastutter, the American farmer, 216 00:14:36,802 --> 00:14:40,602 Speaker 1: ended up with a Brazilian rural maternity ward named after him, 217 00:14:40,802 --> 00:14:43,282 Speaker 1: we had to figure out how the Franz brothers fit 218 00:14:43,322 --> 00:14:46,122 Speaker 1: into it, and what brought Bruce to Brazil in the 219 00:14:46,162 --> 00:14:46,802 Speaker 1: first place. 220 00:14:47,282 --> 00:15:02,722 Speaker 11: That's gonna ye after the break Lucas. 221 00:15:02,722 --> 00:15:05,561 Speaker 1: The Rio Verde is in the Brazilian state of Mato Grosso, 222 00:15:05,802 --> 00:15:09,602 Speaker 1: a state that is almost exactly half agriculture and half 223 00:15:09,722 --> 00:15:15,362 Speaker 1: Amazon rainforest. It used to be even more Amazon. For decades, 224 00:15:15,402 --> 00:15:18,482 Speaker 1: the state was considered the frontier in Brazil. The forests 225 00:15:18,482 --> 00:15:21,162 Speaker 1: were preserved, and it was home to even more indigenous 226 00:15:21,162 --> 00:15:24,162 Speaker 1: people than it is today. But in the nineteen sixties 227 00:15:24,202 --> 00:15:28,082 Speaker 1: and nineteen seventies, Brazil's military government deployed a new strategy 228 00:15:28,522 --> 00:15:32,322 Speaker 1: was called the National Integration Plan. The idea was to 229 00:15:32,442 --> 00:15:36,282 Speaker 1: eliminate indigenous communities that were seen as anti development and 230 00:15:36,522 --> 00:15:40,602 Speaker 1: integrate the north and midwest of Brazil into the national economy. 231 00:15:42,762 --> 00:15:45,922 Speaker 1: Seldom Sada Arrititomba is grabbed. 232 00:15:45,922 --> 00:15:48,402 Speaker 8: You might study of twenty s Anti Task. 233 00:15:49,802 --> 00:15:50,481 Speaker 11: Community. 234 00:15:50,722 --> 00:15:54,482 Speaker 1: This propaganda film from the seventies celebrates the quote revolution 235 00:15:54,762 --> 00:15:59,442 Speaker 1: reaching the jungle, toppling trees in favor of roads. The 236 00:15:59,522 --> 00:16:03,242 Speaker 1: goal was to develop the Amazon by building infrastructure in 237 00:16:03,282 --> 00:16:08,042 Speaker 1: the wilderness, displacing indigenous residents, and encouraging people from outside 238 00:16:08,082 --> 00:16:12,082 Speaker 1: the region to move there, to be pioneers and go 239 00:16:12,122 --> 00:16:16,122 Speaker 1: to this frontier and tainment. The main farm towns in 240 00:16:16,202 --> 00:16:20,802 Speaker 1: motto Grosso today were deliberate colonization projects, many of them 241 00:16:20,802 --> 00:16:24,922 Speaker 1: built and funded by the Brazilian government. The government offered 242 00:16:24,962 --> 00:16:28,762 Speaker 1: people plots of land, housing, and sometimes even credit to 243 00:16:28,882 --> 00:16:32,282 Speaker 1: move there. They even funded research to figure out how 244 00:16:32,322 --> 00:16:35,042 Speaker 1: crops like soybeans and cotton could be grown in the 245 00:16:35,042 --> 00:16:38,642 Speaker 1: tropical climate there. That's what brought the Franz brothers there 246 00:16:38,922 --> 00:16:42,602 Speaker 1: decades ago, and according to Paolo, it's the Franz brothers 247 00:16:42,722 --> 00:16:49,961 Speaker 1: who brought Bruce to the area. In follows telling it 248 00:16:50,042 --> 00:16:53,162 Speaker 1: all happened because of an internship he did in Iowa 249 00:16:53,802 --> 00:16:56,602 Speaker 1: and an important contact he made there. Here he is 250 00:16:56,642 --> 00:16:58,922 Speaker 1: talking about it on a Brazilian podcast. 251 00:17:00,402 --> 00:17:01,561 Speaker 7: Borjun tozer. 252 00:17:02,962 --> 00:17:07,882 Speaker 8: Jenci be quas quadan Onmide senor to Terry Branstead. 253 00:17:08,162 --> 00:17:12,202 Speaker 1: Harry Brandstad, the governor of Iowa the time and eventually 254 00:17:12,402 --> 00:17:17,442 Speaker 1: US Ambassador to China during Trump's first presidency. Pallis says 255 00:17:17,482 --> 00:17:20,921 Speaker 1: they all went to soccer games together a lot. Pallis 256 00:17:20,962 --> 00:17:24,282 Speaker 1: it was Brand's dad who introduced him to Bruce Rastetter. 257 00:17:25,002 --> 00:17:27,881 Speaker 7: Bruce Keo CEO the Empires and Fundador. 258 00:17:29,002 --> 00:17:32,361 Speaker 12: Bruce is the CEO of the company the founder. He 259 00:17:32,482 --> 00:17:35,042 Speaker 12: has a huge passion for pigs and has been involved 260 00:17:35,081 --> 00:17:37,681 Speaker 12: with pigs his whole life. He was a pig farmer 261 00:17:37,922 --> 00:17:40,682 Speaker 12: until he started getting into ethanol, which is a very 262 00:17:40,722 --> 00:17:45,082 Speaker 12: recent thing. I don't know whether, just to clarify, Americans 263 00:17:45,081 --> 00:17:48,482 Speaker 12: produce more ethanol from corn than we do from sugarcane. 264 00:17:49,242 --> 00:17:53,081 Speaker 12: There the philosophy, the culture is producing ethanol from corn. 265 00:17:53,802 --> 00:17:56,682 Speaker 12: So as president, I met with this Terry Branstad, who 266 00:17:56,722 --> 00:17:59,401 Speaker 12: was the governor of Iowa. We met and he wanted 267 00:17:59,402 --> 00:18:00,882 Speaker 12: to buy some land here in Brazil. 268 00:18:01,802 --> 00:18:04,561 Speaker 1: Bruce doesn't mention any of this when he's asked about 269 00:18:04,601 --> 00:18:07,042 Speaker 1: how he wound up in Brazil. Here's how he talked 270 00:18:07,042 --> 00:18:09,841 Speaker 1: about it on a farming podcast a couple of years ago. 271 00:18:10,242 --> 00:18:14,161 Speaker 7: So when we sold Hawkeye to Coke Industries. 272 00:18:13,882 --> 00:18:17,042 Speaker 1: That was one of his S and L companies that freed. 273 00:18:16,802 --> 00:18:18,961 Speaker 5: Me up for the first time to do other things 274 00:18:19,361 --> 00:18:23,641 Speaker 5: outside of being responsible for a larger company, and started 275 00:18:23,682 --> 00:18:24,762 Speaker 5: traveling to Brazil. 276 00:18:25,642 --> 00:18:26,282 Speaker 7: This is how. 277 00:18:26,162 --> 00:18:29,242 Speaker 1: Bruce talks about it in other interviews too. He was 278 00:18:29,282 --> 00:18:32,841 Speaker 1: interested in Brazil because it's the main agricultural competitor to 279 00:18:32,882 --> 00:18:36,321 Speaker 1: the US, or because other US companies had done well there, 280 00:18:36,962 --> 00:18:39,522 Speaker 1: et cetera, et cetera. It was when we were trying 281 00:18:39,642 --> 00:18:44,522 Speaker 1: to verify Bruce and Paolo's differing versions of this story 282 00:18:45,042 --> 00:18:48,282 Speaker 1: that our brazil editor Alisi Desusa found a guy with 283 00:18:48,522 --> 00:18:52,842 Speaker 1: yet another version, is. 284 00:18:52,882 --> 00:18:57,161 Speaker 9: This promos and all are you three huggers? Are you 285 00:18:57,282 --> 00:19:01,042 Speaker 9: looking at this from a negative standpoint or are you 286 00:19:01,121 --> 00:19:01,682 Speaker 9: looking at it. 287 00:19:01,642 --> 00:19:02,962 Speaker 5: From a neutral standpoint? 288 00:19:03,162 --> 00:19:05,841 Speaker 9: I don't mind being neutral. I can be critical of 289 00:19:05,882 --> 00:19:10,641 Speaker 9: this too. Yeah, but because clients of mine have invested 290 00:19:10,642 --> 00:19:13,642 Speaker 9: in all words of a billion dollars now in Marpa Grosso, 291 00:19:13,922 --> 00:19:15,202 Speaker 9: I don't want to fuck this up. 292 00:19:15,841 --> 00:19:19,322 Speaker 1: That's Corey Melby, an agriculture consultant in Brazil. 293 00:19:19,802 --> 00:19:24,121 Speaker 9: I came from Northwest Minnesota, developing land. So of course 294 00:19:24,361 --> 00:19:27,482 Speaker 9: when in the early two thousands, when Marpa Grosso and 295 00:19:27,561 --> 00:19:31,201 Speaker 9: all of this Siebian expansion was taking place, I was 296 00:19:31,242 --> 00:19:33,482 Speaker 9: going to be the land guy for a group from 297 00:19:33,962 --> 00:19:36,242 Speaker 9: some of the first guys I went down with, you're 298 00:19:36,282 --> 00:19:38,602 Speaker 9: going to be here, Corey, pick up the language, bick 299 00:19:38,682 --> 00:19:39,682 Speaker 9: up the contacts. 300 00:19:39,882 --> 00:19:41,402 Speaker 5: You could be the real estate guy. 301 00:19:41,522 --> 00:19:44,402 Speaker 9: So that's where I started was from that. 302 00:19:44,522 --> 00:19:49,762 Speaker 1: Perspective full disclosure. We paid Corey Melby to be a 303 00:19:49,802 --> 00:19:52,841 Speaker 1: fixer for us on the ground in Mato Grosso. The 304 00:19:52,882 --> 00:19:56,202 Speaker 1: idea was that he would take us around and ideally 305 00:19:56,321 --> 00:20:00,002 Speaker 1: arrange a meeting with the brothers Franz at their farm. 306 00:20:00,442 --> 00:20:03,522 Speaker 1: None that ended up panning out, but he did talk 307 00:20:03,561 --> 00:20:06,522 Speaker 1: to Philippi and I and he told us a lot 308 00:20:06,601 --> 00:20:11,361 Speaker 1: about how Bruce started out in Brazil. He also added 309 00:20:11,361 --> 00:20:13,881 Speaker 1: me to his newsletter list, which is a wealth of 310 00:20:13,962 --> 00:20:15,242 Speaker 1: acknowledge about Brazil. 311 00:20:15,561 --> 00:20:16,642 Speaker 7: Although it comes out. 312 00:20:16,522 --> 00:20:18,402 Speaker 1: So many times a week, I still have about five 313 00:20:18,482 --> 00:20:21,081 Speaker 1: hundred unread emails in a folder marked Corey. 314 00:20:22,202 --> 00:20:24,802 Speaker 9: So I've been on every requirement by mon Grosso. I 315 00:20:25,081 --> 00:20:29,282 Speaker 9: wrote the Boom Times and the bus, and the Boom 316 00:20:29,361 --> 00:20:32,081 Speaker 9: Times and the bus again with all my friends. 317 00:20:32,242 --> 00:20:32,802 Speaker 4: So I I. 318 00:20:34,282 --> 00:20:36,401 Speaker 9: You know, I have that twenty five year art of 319 00:20:36,561 --> 00:20:40,002 Speaker 9: experience now of the good, bad and ugly of Macrocrosso. 320 00:20:40,442 --> 00:20:42,081 Speaker 5: And believe me, there's plenty of. 321 00:20:42,202 --> 00:20:42,601 Speaker 9: All of it. 322 00:20:43,762 --> 00:20:45,841 Speaker 1: He knows a lot about Bruce and the Frownz brothers 323 00:20:45,841 --> 00:20:47,722 Speaker 1: because he did for Bruce what he's done for the 324 00:20:47,762 --> 00:20:50,601 Speaker 1: past twenty five years for other Americans looking to get 325 00:20:50,642 --> 00:20:53,961 Speaker 1: into the agg business in monte Grosso. He toured them 326 00:20:54,002 --> 00:20:55,401 Speaker 1: around looking for land. 327 00:20:56,282 --> 00:21:00,202 Speaker 9: Back in twenty eleven, I was visiting Forema and he 328 00:21:00,361 --> 00:21:03,361 Speaker 9: was a young, dynamic guy and he was at Cory. 329 00:21:03,202 --> 00:21:05,121 Speaker 5: We're we're looking to develop a. 330 00:21:06,962 --> 00:21:13,002 Speaker 9: A corn oil mill, processing and investors or a partner 331 00:21:13,081 --> 00:21:13,321 Speaker 9: in that. 332 00:21:15,242 --> 00:21:15,722 Speaker 5: Corn oil. 333 00:21:16,042 --> 00:21:19,562 Speaker 9: So I was writing about this BS and my brewsletters 334 00:21:19,601 --> 00:21:23,841 Speaker 9: at the time, and also visiting him Lucas Deomerday at 335 00:21:23,882 --> 00:21:29,162 Speaker 9: the elevators at the time, doctor to Climber's Oh we've 336 00:21:29,202 --> 00:21:32,722 Speaker 9: got to get corn athene or we're going to bury ourselves. 337 00:21:35,482 --> 00:21:38,442 Speaker 1: Because of his newsletter and his ties to various American 338 00:21:38,561 --> 00:21:41,321 Speaker 1: at folks, Corey has kind of become known as the 339 00:21:41,522 --> 00:21:44,202 Speaker 1: guy to call if you're an American who wants to 340 00:21:44,282 --> 00:21:47,161 Speaker 1: get a sense of Manto grosso. So when people started 341 00:21:47,202 --> 00:21:50,082 Speaker 1: talking about corn ethanol there, it was only a matter 342 00:21:50,121 --> 00:21:54,522 Speaker 1: of time before he got a call from you know who, Summit. 343 00:21:54,561 --> 00:21:57,361 Speaker 9: From Iowa, which I'm sure you are very familiar with, 344 00:21:57,522 --> 00:22:00,242 Speaker 9: Bruce Brest letter and Eric and then the whole club. 345 00:22:00,482 --> 00:22:04,762 Speaker 9: I get it all from Bruce's letter email, Hey, we. 346 00:22:04,841 --> 00:22:05,361 Speaker 8: Would like to. 347 00:22:08,442 --> 00:22:12,361 Speaker 9: Uh, we're going to be down there for another reason. 348 00:22:12,762 --> 00:22:14,162 Speaker 5: Could we do something? 349 00:22:14,402 --> 00:22:17,802 Speaker 1: Call up cart was they didn't want to take one 350 00:22:17,841 --> 00:22:20,042 Speaker 1: of Corey's prepackaged ag tours. 351 00:22:20,442 --> 00:22:25,482 Speaker 9: Okay, so this is twenty eleven. We do a little 352 00:22:25,522 --> 00:22:27,362 Speaker 9: quick power to here they go home. 353 00:22:27,442 --> 00:22:29,202 Speaker 5: I figured out just another tour. 354 00:22:30,002 --> 00:22:33,081 Speaker 9: Uh, we were looking at land. 355 00:22:33,202 --> 00:22:34,162 Speaker 8: We loved to get going. 356 00:22:35,442 --> 00:22:38,402 Speaker 1: Corey carried on, thinking nothing of it. But six months 357 00:22:38,482 --> 00:22:40,561 Speaker 1: or so later he got a call from some friends 358 00:22:40,642 --> 00:22:41,882 Speaker 1: in Manto, Brusso. 359 00:22:42,162 --> 00:22:46,121 Speaker 9: My good friend, the friends is you know, they were Cory. 360 00:22:46,762 --> 00:22:48,242 Speaker 5: We we wanted to get. 361 00:22:48,121 --> 00:22:50,002 Speaker 9: An ethanol now went out here. 362 00:22:50,242 --> 00:22:53,121 Speaker 5: But we needed help. We need American, we need capital. 363 00:22:54,762 --> 00:22:57,722 Speaker 9: So I was telling Bruce and the guys, you know, 364 00:22:57,802 --> 00:22:59,802 Speaker 9: I've got friends. I'm thinking. 365 00:23:01,081 --> 00:23:01,482 Speaker 8: Guys. 366 00:23:02,121 --> 00:23:05,561 Speaker 1: According to Corey, at the time, Bruce and the guys 367 00:23:05,722 --> 00:23:08,721 Speaker 1: weren't quite ready to get into the ethanol business in Brazil. 368 00:23:08,882 --> 00:23:11,962 Speaker 1: They were just looking for some farm land. Then they 369 00:23:12,042 --> 00:23:15,002 Speaker 1: came back for another trip, and as Corey tells it, 370 00:23:15,321 --> 00:23:18,361 Speaker 1: this is when they met the Franzis all. 371 00:23:18,202 --> 00:23:21,922 Speaker 9: All of a sudden, we've got a farm for sale. 372 00:23:22,762 --> 00:23:25,641 Speaker 1: Corey helped broker the deal between Bruce and the Franzas, 373 00:23:25,722 --> 00:23:27,322 Speaker 1: and it kept them all talking. 374 00:23:27,882 --> 00:23:30,042 Speaker 5: Three years to tolls on this down farm. 375 00:23:30,442 --> 00:23:33,802 Speaker 9: But that farm for just then opened the door with 376 00:23:34,081 --> 00:23:39,201 Speaker 9: trussed and capable. Hey, let's let's build an ethanol. 377 00:23:38,682 --> 00:23:40,161 Speaker 5: And lucas together. 378 00:23:41,042 --> 00:23:43,482 Speaker 1: The Franz brothers had hit the big time. They were 379 00:23:43,522 --> 00:23:47,401 Speaker 1: getting into business with the ethanol kingpin of Iowa. It 380 00:23:47,522 --> 00:23:50,922 Speaker 1: was a whole new level. Whereas Corey calls it cycle three. 381 00:23:51,762 --> 00:23:57,641 Speaker 9: Cycle one is deforestation in cattle, Cycle two is song. 382 00:23:58,561 --> 00:23:59,642 Speaker 5: Cycle two point. 383 00:23:59,561 --> 00:24:01,522 Speaker 8: Five is soa a corn. 384 00:24:01,802 --> 00:24:06,002 Speaker 9: Basically, you know, the combination CYCLELE three now gets to 385 00:24:06,202 --> 00:24:12,641 Speaker 9: be what we would say industrial or added Iowa. 386 00:24:13,962 --> 00:24:17,002 Speaker 1: For the Franz brothers, Bruce was a white whale at 387 00:24:17,042 --> 00:24:21,482 Speaker 1: a time of booming Brazilian industrial agriculture. He happened to 388 00:24:21,522 --> 00:24:24,002 Speaker 1: have some free time on his hands, and now this 389 00:24:24,282 --> 00:24:27,162 Speaker 1: international king of corn had picked them. 390 00:24:27,802 --> 00:24:28,362 Speaker 5: What luck. 391 00:24:29,081 --> 00:24:33,042 Speaker 1: But that story misses one important detail. At the time 392 00:24:33,121 --> 00:24:36,682 Speaker 1: he was doing land tours in Brazil, Bruce Rastetter was 393 00:24:36,762 --> 00:24:39,481 Speaker 1: having a really bad time back home in Iowa. 394 00:24:40,081 --> 00:24:43,722 Speaker 4: Since twenty twelve, since that big land grab attempt in Africa, 395 00:24:44,242 --> 00:24:47,121 Speaker 4: he has become a dirty word in Iowa. 396 00:24:47,522 --> 00:24:49,522 Speaker 11: It's just that's what he does. 397 00:24:49,682 --> 00:24:51,482 Speaker 5: It's like his business model, you know. 398 00:24:51,802 --> 00:24:55,401 Speaker 3: And whether it was in Iowa with you know, how 399 00:24:55,482 --> 00:24:59,322 Speaker 3: he was treating Iowa farmers or now it's gloquially Yeah, 400 00:24:59,402 --> 00:25:00,762 Speaker 3: he just keeps pushing his. 401 00:25:00,922 --> 00:25:02,242 Speaker 11: Business advancement, right. 402 00:25:02,361 --> 00:25:04,682 Speaker 1: It's all about his corporate profits. 403 00:25:05,162 --> 00:25:07,082 Speaker 10: Friends of friends have said that he's kind of over 404 00:25:07,242 --> 00:25:10,601 Speaker 10: Iowa and more interested in Brazil, which I mean it was. 405 00:25:10,642 --> 00:25:13,202 Speaker 10: If I was issues, if I had the choice of, 406 00:25:13,321 --> 00:25:15,121 Speaker 10: you know, being at a place where everybody hated me 407 00:25:15,162 --> 00:25:17,121 Speaker 10: in a place where people fond over me, I'd probably 408 00:25:17,121 --> 00:25:18,401 Speaker 10: go to the people fond over me. 409 00:25:19,121 --> 00:25:26,042 Speaker 1: That's our story. Next time. We reached out to Bruce Rastutter, 410 00:25:26,121 --> 00:25:30,082 Speaker 1: Harold Hamm, the Frownz Brothers, Miguel Das Robero, and all 411 00:25:30,162 --> 00:25:34,282 Speaker 1: Summit companies and Brazilian government agencies mentioned in this season 412 00:25:34,402 --> 00:25:38,162 Speaker 1: for comment and have incorporated any responses we received throughout 413 00:25:38,202 --> 00:25:38,641 Speaker 1: the season. 414 00:25:39,722 --> 00:25:43,762 Speaker 6: Carbon Cowboys Cowboys of the Sejadu is a collaboration between 415 00:25:43,882 --> 00:25:45,641 Speaker 6: Drilled and The Intercept to Brazil. 416 00:25:46,002 --> 00:25:49,601 Speaker 1: The show was reported and written by Philippe Sabrina and 417 00:25:49,762 --> 00:25:51,081 Speaker 1: me Amy Westerveld. 418 00:25:51,402 --> 00:25:55,122 Speaker 6: Our editors are Audrey Queen in the US and Alisi 419 00:25:55,162 --> 00:25:56,402 Speaker 6: Desulza in Brazil. 420 00:25:56,802 --> 00:26:00,282 Speaker 1: Our senior producer and sound designer is Martin Zaltz Ostwik. 421 00:26:00,802 --> 00:26:04,841 Speaker 1: Audio production and sound design in Brazil by Marcia Heberdoza 422 00:26:05,042 --> 00:26:06,121 Speaker 1: and Philippe MoOx. 423 00:26:06,762 --> 00:26:10,002 Speaker 7: Theme song and original music by Eric Terna. 424 00:26:10,002 --> 00:26:14,442 Speaker 1: Additional music by Martin Saltz Austwick. Our engineer is Peter Duff. 425 00:26:14,962 --> 00:26:17,042 Speaker 7: Artwork for Drild is by Matt Fleming. 426 00:26:17,601 --> 00:26:20,162 Speaker 1: US fact checking from Naomi Barr. 427 00:26:20,321 --> 00:26:22,881 Speaker 7: Brazil fact checking by Estudio Frontea. 428 00:26:23,242 --> 00:26:25,922 Speaker 1: Our First Amendment Attorney is James Wheaton with the First 429 00:26:25,962 --> 00:26:30,121 Speaker 1: Amendment Project. We are also proud members of Reporter Shield. 430 00:26:30,682 --> 00:26:34,882 Speaker 1: Big thanks also to Andrew Fishman, president of The Intercept Brazil. 431 00:26:35,642 --> 00:26:38,242 Speaker 7: DRILD is distributed by Pushkin Industries. 432 00:26:38,841 --> 00:26:42,762 Speaker 1: Huge thanks to the team there, including Greta Cohen, Eric Sandler, 433 00:26:42,962 --> 00:26:48,402 Speaker 1: Grace Ross, Morgan Rattner, Owen Miller, Kira Posey, Jordan McMillan, 434 00:26:48,922 --> 00:26:53,321 Speaker 1: Brian Schreberneck and Jake Flanagan. To hear the Portuguese version 435 00:26:53,402 --> 00:26:56,722 Speaker 1: of this series, head over to The Intercept Brazil's site, 436 00:26:57,361 --> 00:27:00,802 Speaker 1: or search for The Intercept Brazil's podcast feed wherever you 437 00:27:00,962 --> 00:27:02,161 Speaker 1: listen to podcasts.