Almost all ethanol currently in production in the U.S. is made from corn. U.S. corn and ethanol

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Almost all ethanol currently in production in the U.S. is made from corn. U.S. corn and ethanol producers are generally different entities. The government currently provides a subsidy of $0.51 per gallon to ethanol producers, which allows ethanol producers to charge a lower price for fuel mixes containing ethanol. How would the ethanol subsidy affect demand and supply in the corn market? How would the ethanol subsidy affect the supply of agricultural products that are production substitutes for corn (i.e., crops that corn producers could grow instead of corn)?

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