You guys apparently can't read. The Register article was talking about tax incentives given to new businesses. Not ethanol subsidy. It is just that there were a lot of biofuel companies starting up in Iowa the last year.
Without the subsidies and at current cost of corn and selling price of ethanol, the ethanol plants are making about $.70/gal profit. Ethanol is selling for about $.30 less per gallon than gasoline at a wholesale level. Sounds like a good business to me.
Gasoline doesn't get to your car for free either. It takes a lot of fuel to pump it out of the ground, ship it half way across the world, refine it and truck it to your gas station.
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