No subsidy would be needed to switch to fuel crops. The price increase in Mexico's tortilla's is proof of that. The farmer sold his product to the highest bidder. That middle man then resold it to an ethanol plant to be used for fuel instead of food. The result? Less and more expensive food and no substantive change in petro usage.
The simple fact is that the ethanol was not being made from garbage, plant refuse or any other cast off. It was made from food grade corn. If, or should I say when, the price recieved for supplying ethanol plants with food grade material exceeds the price received of food supplies, the crops will be diverted to the higher paying avenue.
It would be a silly farmer not to turn down $5.00 a bushel for food if he can get $8.00 selling it for fuel.