According to what diamondpilot has seen, if e10 gas is $3.00/gallon, e85 would have to be $2.10/gallon. Without the government subsidy, will this price spread exist to make it logical? I grew up in central Illinois and understand the farmers could greatly benefit from ethanol. Hopefully these increased prices will also allow the government to kill many of these subsidized farm programs.
Timber, I respect your desire to make your own fuel and hopefully it will be both a fun and economical venture. If not economical at least it will make you feel warm and fuzzy on the inside(not by consuming).
Most folks figure a price difference of $.50-.60 makes the ethanol a better buy for their vehicles, but not every E85 engine is the same. The price relationship changes every week, the closest ethanol pump is a 3/4 mile from my driveway, they are all around southern MN. There are weeks E85 is not a bargin, there are weeks it is. Since gas prices are going up into summer, likely E85 will be a good bargin more often than not. Ethanol has matured more or less, no new plants going up, we are where we are with that for the time being.
With the ethanol subsidy gone, gas prices rose a bit, and the ratio will likely remain either side of 50 cent price difference.
Grain prices are on such a roller coaster - South America is having a dismal crop, China & India have lots of money & the USA dollar is so weak our grains look like a bargin to them - ethanol isn't even a player any more in grain prices.
The govt has one built-in grain subsidy to entice farmers to sign up & remain uder their (meaning all taxpayers'?) control. The other subsidies have not kicked in in several years now, so yes, they have eliminated a lot of the old farm subsidies. There is much talk that even the one subsidy to grain farmers will be eliminated in the next farm bill. Currently only about 11% of the 'farm bill' goes to farmers; the rest goes for admistration, food safety, and Food Stamps type programs. So, yes, for sure, farm subsidies have gone down.
Sorry for the thread drift.
--->Paul