"Indiana corn farmers are seeing higher earnings with the increasing demand for corn as a feedstock for the state's ethanol plants, said Corinne Alexander, assistant professor of agricultural economics at Purdue University. But rising corn prices adversely affect the state's hog and poultry farmers who are being hit by higher feed costs, she said."

"The demand for ethanol production increased the price of corn 67 cents a bushel between Oct. 12 and Nov. 3, Alexander said. At a projected yield of 167 bushels an acre, the 67 cent increase means an additional $112 an acre. With Indiana's full-time farmers having 1,000 acres of corn and 1,000 acres of soybeans in production, the price hike means an extra $112,000, which is "a huge, huge income increase," she said."

"Soybean prices have gone up 50 cents a bushel in recent weeks, she said. The extra money is important because farmers have seen huge increases in the price of energy, seed, fertilizer, Alexander said."

And from Texas (your old stomping grounds no less):

"Anticipation is growing in rural communities across the state as the biofuels industry takes flight. Its growth can strengthen crop prices because the industry depends on commodities like corn, grain sorghum and soybean to convert into fuel, and it can bring new wealth to communities through the construction activity and jobs it generates.

Robert Wood, assistant commissioner for rural economic development at the Texas Department of Agriculture, said the 30 to 60 jobs a typical ethanol plant creates may not mean much to a big city like Houston, but it would have a real impact on a town of 2,500.

A Texas A&M University study said an 80 million-gallon ethanol plant could produce 1,400 associated jobs over time. The overall economic boost provided by that size of a plant could reach $400 million, including $41 million in increased household income annually once the plant begins operation.

There are no certain remedies for the problems facing rural areas, but ethanol and biodiesel plants can be "a huge cornerstone for us to build on," Wood said."

And oh ALAN! ALAN! ALAN! from Iowa:

"About 75 percent of the nation's annual production of 4.3 billion gallons of ethanol a year is moved by rail, with the remaining 25 percent transported by truck, according to the Renewable Fuels Association.

Infrastructure is growing across the country, the association said in an annual industry report released in February.

Spokesmen for major rail companies, including the nation's largest freight hauler, Union Pacific, said they are investing in track improvements near ethanol plants."

So lets see...

Jobs galore, new rail development, increased land prices, increased grain prices, increased rural incomes, strengthened rural communities, increased skill and labor set, positive (albeit minimal) environmental/GHG impact, net decrease in petroleum usage...

I could literally post stories all day long from the likes of the Wichita Eagle to the Vulcan Advocate re: ethanol and the positive impact it's having for farmers and rural folk across the continent.  

Ethanol producers (like any business) are going to have to adapt to the market just like everyone else - some will make it, some won't.

Peak Oil = high prices for everything and that includes the price of corn.