Re: Forgot to mention
Charlie,
If you hadn't guessed already, ethenol is big busines here in Iowa. Many are seeking state approval to build ethenol refineries. The guideline are pretty strict and the refineries have to be able to deliver the product in the contracted quantities and on time. The approach is to cut out all middle men and go from field to refinerie.
My brother in law attended the local meeting, you can buy "shares" for $5000 each and you must deliver 2500 bushel per share on their demand schedule. Each refinerie is guarenteed a region by the State and no other refinery can operate in that region unless the refinery is unable to meet its requirements. Ethenol costs about 1/2 as much to produce (about 68 cents/gallon) as it did 4 years ago. If money is to be made by the farmer it's his feeling that it is going to be early on, once the elevators and corporate farms gain control of the refineries it will be right back to low grain prices for the farmer.
I don't believe the oil industry is sitting back waiting for ethenol to replace MTBE. They are sure to introduce some additive to combat the grain alcohol threat.
BTW, the goverment is already pushing ethenol fueled vehicals. A friend got a $600 credit on his federal taxes for buying a car (Ford Taurus FFV) capable of burning 85% ethenol. If he could find a station selling it, he'd also get a credit towards the fuel he bought.