Let's not mislead people to support your argument. There is not $1108 of return. You totally left out processing cost. The other error in your math is that the maximum yield that I can find is 2.5 gallons per bushel. That would be 412 gallons on 165 bushels. Without processing costs that makes $988.00 per acre.
The only fair way to compare this would be to compare the ethanol value with other venues in which the corn could be used. How much could be made from cattle on the same 165 bushels of corn? I'm betting a better return on investment.
Also consider that the tax on a gallon of E85 is lower than the tax on a gallon of gasoline. That's money missing from the government's hand which is a subsidy.
Lets also talk about effeciency of vehicles which would take the return per acre to the next step. Even vehicles equiped for E85 typically experience a 20% decrease in fuel econonmy over gasoline. That puts gasoline at a cost advantage over ethanol by quite a few cents despite the tax break for E85. For the end user this is a reduction in value.
My only reason for posting this was to prevent someone from seeing only one side of the situation. Ethanol is not rosey despite what some would like to believe. The government has yet to do anything effeciently and this is no exception. The govenment has no business in setting price floors/ceilings or adjusting market prices.
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