If fuel is mandated to be mixed with ethanol, it creates an artificial demand that would not exist without this requirement. Perhaps direct subsidies are not going to the farmers, but a demand is still being created for them.
I have a hard time understanding the economics of farming. I see many farms working at a loss year after year and just building up debt until the farm collapses and bankruptcy clears the debt. I am not close enough to this industry to see where the disconnect is between pricing, supply and demand.