[TFMcGuire]

The cost of the corn in Ethanol may be 5o cents/gal. But the manufacture as of today is only profitable because of government subsidies which are due to expire in 2007.

[Mr. Lucky]

You're mistaken. There is no federal subsidy to the manufacture of ethanol. There is a tax credit, but this credit is taken by oil companies against the tax which is otherwise payable on motor fuels at the "rack" or wholesale level.

Distilling capacity in this country is expanding by leaps and bounds right now - because ethanol distillation is so profitable.