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>The net energy output is only around 1.3 so an acre of corn produces maybe 400 gallons of gasoline equivalent output requires 300 gallons of gasoline equivalent in energy inputs.

What is the problem, that sounds great? 30% free output out of your input is staggering honestly. Thank you sunshine and atmospheric CO2. You don't have to use fossil fuel for this. You can potentially run the farm equipment off ethanol if it were designed as such.

You can also only grow sugarcane well up to usda zone 8. Some people can do it as an annual but I guess it is tricky. Corn you can grow all the way into Canada.

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Opportunity costs essentially. The effort that goes into growing and refining corn ethanol could be better spent on reducing fuel consumption instead of dedicating five acres of land to provide the equivalent net yearly fossil fuel consumption of a single average car using 500 gallons of gasoline to drive about 15000 miles.
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Why not do both, reduce fuel consumption while shifting to a carbon neutral fuel source that is fully onshored?
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Again opportunity costs. It almost always makes sense to spend the money on the most efficient means to achieve the goal. Money spent paying farmers and ethanol refiners to inefficiently produce 25% lower carbon fuel could instead be directed at other endeavours that for the same cost reduce carbon emissions more.
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