The primary problem is that ethanol cannot replace gasoline. We do not have enough crop support to produce enough ethanol even if we dedicated 100% of our corn crop towards it and if you did that, you can kiss any corn products goodbye (corn syrups used in sodas, corn itself for consumption, etc.). I wish it was an answer as I have many family members and friends who are in farming, but it is more a complementary product to gasoline. It improves gasoline's octane while helping to keep the price down a little; however, that is partly due to tax subsidies. The question then is how much per gallon is ethanol costing us despite the price reduction at the pump.
The other problem is E85 only gets 2/3 the mileage that gasoline does. Even at $.55 lower per gallon in my area, it still does not make up the difference. Just check out the difference on this site.
www.fueleconomy.gov Find a FFV vehicle you know of and it will compare the fuel efficiency and the price of traveling 25 miles on both.
If the Ethanol industry wants to comback, they should find an alternative use for Ethanol other than cars.
Butanol is the better renewable fuel choice as it does not need special modifications and supposively gets better fuel mileage than either gas or ethanol. There was a thread about it around a year ago, it took a little digging but I found it after about 27 pages.
https://dodgechallenger.com/forums/m_3854/tm.htm
Enjoy!