Here's some info from the Minnesota State website. Now what is the true cost of Ethanol if they had to fully fund the production of the plants? What if they didn't get the $.20 cent a gallon state incentive(subsidy)? What if there was no $.50 a gallon Federal Tax Credit? What if there was no state mandated E10 requirement? What is the true cost if this wasn't factored in?
The main components of the Minnesota Ethanol Program are:
Oxygenated fuel statute that requires statewide oxy-fuel (ethanol blend) use,
The 20 cent per gallon ethanol producer incentive provided payment for ethanol produced, plus
$550 million was spent for total corn/ethanol plant construction and startup costs.
$370 million in private sector financing was contingent on local equity capitol.
$180 million in local equity capitol was raised by over 8,000 farmer and business members.
Over $200 million worth of corn was committed for processing annually by local farmers.
http://www.mda.state.mn.us/ethanol/about.htm