This research analyzes and models the relationship between corn, ethanol, and government subsidies. A two stage least squares model is used to estimate the demand for corn. Numerical estimations of central relationships between the markets are then used to evaluate the effects of changes in ethanol markets on domestic corn markets. The results show that an increase in the price of ethanol increases both the equilibrium quantity demanded and price of corn. Agricultural subsidies are then brought under question in light of these established relationships coupled with current trends in the ethanol and coin industries. Data used in the research comes from the United States Department of Agriculture's Economic Research Service among other sources.