A variable subsidy for U.S. ethanol producers would cost the U.S, government less and provide more security for manufacturers than current fixed rates. That’s the conclusion of Purdue University agricultural economist Wally Tyner, who says such a rate would insulate producers from risk because as oil and ethanol prices drop, their subsidies would increase. The government would save money because it would not have to pay any subsidy when oil prices were high. The current subsidy for ...

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