The main editorial in today's Denver Post confronts the same problem

I rant and rail against here, and it just became more obvious when we recently returned from Nebraska. As always, driving back home, we got 10% worse fuel economy cuz we we filled up with the ethanol crap that the Bush administration mandated, in a successful scheme to get the 'Farm States' on board with their illegal, immoral, disastrous war in Iraq. (Google it)
The original reasons given for the (political) debacle: less pollution, a shrinking oil supply and dependence on foreign oil are now non-factors as we see that it takes more energy to produce, than it produces. Plus. we have the added 'bonus' of driving up the price of ALL food, (meat AND vegtables) while farmers obviously 'plant where the money is', while wasting precious WATER. Sickening, but SO Republican, as they have a stranglehold in Congress, and the rest of the country pays a hidden, but EXPENSIVE tax to the Farmbelt(R), on TOP of the tens of $billions in outright SUBSIDIES.
These are the same 'patriots' who bitch about govt handouts, as they get a YUUUUGE 'hidden tax', while their worthless product costs us all, in SO many ways.
Thanks again, Republican dirtbags....

Renewable Fuels Standards, requires blending an increasing amount of biofuels into the nation’s fuel supply, but as the years have passed it’s become increasingly clear that federal ethanol policy is a bad deal all around. To begin with, it hikes the cost of fuel and reduces gas mileage, although this was always known to be the case. More disturbingly — and unexpectedly — by paying farmers to plant crops for fuel rather than food, the ethanol mandate drives up the cost of food, not only here but in impoverished countries abroad.

 In short, much of the rationale for ethanol has either melted away or been overtaken by new data and unintended consequences. It’s time for a hard look by Congress at the entire program, but will they do it? Not while Congress is controlled by Republicans. 

If nothing else, the ethanol fiasco provides a good education on 'how and why' things work in Washington, and as always, 'Follow the Money'.