Take it from someone in Hawaii; product prices vary in different parts of the county. I'll attest to this, as I lived in Honolulu for three years and slowly got used to $6 gallons of milk. I didn't own a car there, though, so I wasn't too aware of gas, ethanol or
this weekend took a look at the relative value of ethanol depending on where in the country one is. One reason is transportation costs, which reduce a farmer's income for the corn because transportations costs are taken out of their checks. Farmers who are closer, say, to barge transportation in New Orleans, get a premium instead. An ethanol plant built near farmland will raise prices for local grain a few cents, according to the general manger of Hawaiian Commercial & Sugar Company who also has ties to his Midwest farming family quoted in the story.
[Source: Maui News]