Since 1980, no candidate has won the Iowa caucuses without kowtowing to the ethanol lobby, sometimes trampling their supposed free-market principles in the process.
In 2000, Senator John McCain staunchly opposed the ethanol mandate, but by 2008 had flipped, announcing that he had become a “strong” supporter of what he now called a “vital alternative energy source.”
In the run-up to the 2012 Iowa caucuses, Mitt Romney smiled for the cameras, ear of corn in hand, to assure Des Moines voters: “I support the subsidy of ethanol.”
You have correctly identified most of the factors at work in this flat out government scam/swindle. This is ADM in cahoots with most of the ag interests and paid for swindler Midwest senators.
Years ago I questioned Grassley (IA) as to how he could justify this program——his pathetic reply was that it was a popular program favored by farmers. Well no kiddin Einstein!
You are likely aware that the USDA is headed by a democrapper former Iowa governor—though to be fair the repubocrats have their faces buried in the trough just as deep.