This report provides an overview of the ethanol fuel industry and documents involvement of farmer cooperatives in it. The market demand for ethanol is analyzed. Other factors influencing ethanol fuels development are also discussed, including the impact on profitability should Federal and/or State processing/production subsidies be reduced. This report suggests that potential investors examine the prospects carefully prior to involving themselves in the fuel ethanol industry at any time in the near future. The virtual existence of the fuel ethanol industry depends upon Government subsidies and commensurate political support. Neither of these conditions has gone unchallenged.