Petroleum doesn’t subsidize fuel ethanol. There’s an oxygenation requirement for gasoline sold in the US, rather a series of them, and most states have banned the petrochemical MTBA because it shows up in the water etc, while ethanol does not. I’ve never seen anyone call MTBA out for being the product of a federal subsidy. But if ethanol is considered to be subsidized because of a floor price, then the subsidy is actually going the other way, since most ethanol produced in the US (and imported) is going directly into gasoline.
[snip] Fertilizer price volatility affects the profitability of corn and small grains, where fertilizer accounts for a relatively large share of production costs, compared with that for soybeans and cotton. [/snip]
What’s getting burned to run the tractors etc.? Are these operations so purist that they themselves only employ pure ethanol for their own energy needs?