I am a farmer, albeit a small one. Last year I farmed 430 row crop acres, this year it is about 340, I had to give up some land. I definitely agree there are antiquated, anger driven, incorrect opinions out there on ethanol.
Fallacy #1: We're burning our food. Less than 11 percent of our total corn production goes for human consumption. The rest used to become livestock feed. Now, whatever doesn't get used domestically or exported for livestock feed is broken down at ethanol plants, and the starch is consumed for ethanol production, while the protein component comes out as "DDG" or Dry Distiller's Grains. This is still used as livestock feed. Very little is lost. What is lost on most people is that there are two very basic types of corn: Field Corn and Sweet Corn. The vast, vast, vast majority of what you see growing in fields is NOT Sweet Corn. It is not edible for humans the way Sweet Corn is. The little bit that I mentioned that is for human consumption is ground into corn meal or processed into corn syrup. Your can of Del Monte cream corn or Little Green Giant whole kernel corn is not the same stuff that we are using to make ethanol.
Fallacy #2: We waste fossil fuels producing ethanol, or more specifically growing the corn for ethanol. We're going to grow the corn anyway, and before local ethanol plants started up, we trucked every last kernel all the way to Kansas City to market it. If anything, at the farm level, we are using less fuel.
Fallacy #3: Farmers get huge welfare checks to farm. There have always been caps on it, I think the old cap was 900K. Under the old program which died in 2013, I got an average of about $15 per corn base acre of subsidy. It amounted to a little under $5,000. With a 1/4 million operating cost, it was next to meaningless. I for one am not one of those driving a brand new pickup. I'm using an old 1995 Ford and praying the transmission makes it another year. Once the wife's Subaru sells, I won't own a single vehicle newer than 10 years. The new pickups are on the payment plan guys.. a lot of farmers are really married to their bank. The new payment system kinda screws the farmer. You get paid based on a formula.. if the price drops, you get a subsidy in theory, however there's a catch.. it's based on per acre revenue. If your yield average outpaces the commodity price drop, you won't get a payment. If the yield average sucks, chances are pretty good that commodity prices will go up, and you won't get a payment. Our crop insurance is structured the same way, I guess at least in the government program you don't have to pay anything in aside from sticking to the NRCS conservation plan. The real money paid out is on the insurance side of the house. What appears to be the "subsidy" is really just a kicker for the insurance company. They charge the farmer what we would be willing to pay anyway, and then tack on a huge write-up, which is covered by the "subsidy". The reality is, if the subsidizing on the insurance side of the house went away, the insurance companies would have to figure out a way to operate without them without huge price hikes, we wouldn't buy the insurance at the high cost. It would be like paying $30,000 to insure a $15,000 car, you'd come out ahead by just absorbing the risk, because the insurance couldn't possibly pay out enough to justify its cost.