"According to Don Hofstrand, a value added agriculture specialist and co-director of the U.S. Department of Agriculture’s Agricultural Marketing Resource Center, the ethanol prices now around $1.50 per gallon - have dropped by about $1 since last summer’s high.

He said the cost of producing ethanol has risen more than 20 cents per gallon since the fall of ‘05, “due mainly to the increased cost of producing corn.”'