My grand father is a mechanic and owns a farm.
That said he looked at doing ethanol(he already owns several flex fuel vehicles(apparently being a mechanic by trade is a good qay to acquire cars at no price)). He has cows that he has to feed and looked at using the by-products as feed. He also already has his own gasoline pump and enormous storage tank burried near his home auto shop.
He decided against it because it doesn't produce enough ethanol and FE drops. . .
He said if it didn't drop the FE it would be worth it(also fuel was only 2.50ish at this time). That said he has a substantial amount of the ingredients in the event gas goes above 4.
The in ground storage unit is several hundred gallons. He quit getting it stocked when his friend who owned a gas station died and the station shut down(no access to a supply line). It was really handy when he had it operating because I could just swing in and my grandmother would demand I fill my tank ^_^.
So really it depends on how cheap can you get the grain and other ingredients. You'd also have to talk to the. . .DMV? not the alcohol trade people. The issue you will run into is they wanna get their taxes per gallon. For me it's 40 cents per gallon.
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