If they use up the over-supply it should stimulate prices on remaining bushels, provided they don't displace traditional markets. Again the details could change a lot.Why do you think the states will see higher commodity prices ? When the government starts buying them, it will put a ceiling on prices.
Actually I think they should just increase the required ethanol percentage in gasoline, then let the markets sort out the crop spreads after that. Big oil would have(and surely has had) a lot of say in that decision though.
torriem the reason things are made in China is because of cheap labor and a low regulation environment. That's what took business over there initially. Sure the parts are all made there now and proximity is close to source components, but that is only now a side-effect reason and not the initial cause IMO.