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Ethanol demand has pushed up corn prices.
The Senate's new Democratic leaders and the Bush administration are promoting a growing number of measures to bolster ethanol demand.
When corn prices jumped with ethanol demand in 2007, farmers grew much more corn.
The ethanol industry had previously tried to expand ethanol demand by promoting E85, a fuel that is 85 percent ethanol.
One of the most ambitious measures for raising ethanol demand is sponsored by Senators Chuck Hagel, Republican of Nebraska, and Tim Johnson, Democrat of South Dakota.
The stock has also come under pressure from crude oil prices nearing a three-month low of $119 a barrel, which could reduce ethanol demand.
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One attraction is that compared with ethanol, the demand for which depends to a large extent on government mandates that it be blended into conventional fuels, drop-in fuels are less susceptible to changing political whims.
The connection between slave or degrading labor and increased ethanol-linked demand for sugar cane has not gone unnoticed by Brazilian watchdog agencies.
The ultimate goal is to develop an alternative to corn ethanol, which demands heavy investment in water and fertiliser and takes premium farm land out of food production.
With gasoline consumption declining even as federal mandates for ethanol are increasing, demand for cellulosic ethanol may be insufficient anyway.
Using them to make ethanol raises the demand for staple commodities like corn and cane sugar, keeping prices high.
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