The economic feasibility of producing ethanol fuel from a variety of starch and sugar rich crops and crop residues at an off-farm cooperative scale plant (3,408,000 L/y) is evaluated within an agriculturally diverse and productive region of the Sacramento Valley, California (U.S.A.). A linear programming model of a county (Yolo) representative of the region is used to compare conventional starch and sugar crop fermentation and distillation technology with innovative cellulosic hydrolysis. Parametric programming is used to estimate breakeven prices for ethanol fuel production for several different planning scenarios. Land use data in the model are based upon 1981 crop hectarage inventory maps, a soil quality map, and a map of different trip distances to a centrally located plant. Vegetable and field crop hectarages of barley, corn, grain sorghum, rice, sugar beet, tomato, and wheat are digitized and upper and lower hectarage flexibility restraints are estimated by regression based upon hectarage changes in the past. High and medium productivity soil groups, Storie Index Rating (SIR) I and II, and III and IV, respectively, are also digitized. SIR is used to classify soils on the basis of pedologic characteristics and their usefulness to agriculture. Trip distance costs for trucking are calculated for 13, 26, and 39 km routes. Candidate starch and sugar feedstocks include barley, corn, corn silage, grain sorghum, wheat, fodder beet, Jerusalem artichoke, sugar beet, and sweet sorghum. Lignocellulosic feedstocks include the residues of barley, corn, grain sorghum, rice, and wheat. Planning options comparing the effect of including or excluding currently available subsidies in the form of tax credits on ethanol fuel breakeven prices are modeled for a base year, 1981, and a forecast year, 1992, when these subsidies are scheduled to expire. Technological innovation is assumed to reduce capital costs by 20% by 1992. Prices of gasoline and diesel fuel are projected to rise from $0.34 and $0.30 per liter respectively, to $0.75 and $0.71 per liter (1981 $), respectively. It was found that in 1981 the least-cost feedstock using conventional fermentation technology was fodder beet. Estimated breakeven prices sufficient to equal fixed, variable, and opportunity costs of production were $0.29 and $0.46 per liter, with and without subsidy, respectively. In 1992, the least-cost feedstock will also be fodder beet. Its estimated breakeven price is $0.40 per liter. For lignocellulosic feedstocks, breakeven costs using acid hydrolysis technology ranged from $0.27 to $0.35 per liter depending upon conversion efficiency and subsidization. By 1992, the estimated breakeven cost could range from $0.42 to $0.47 per liter without subsidization. Fodder beet appears more favorable than other fuel crops because of its cheaper storage costs, a factor not shared by sweet sorghum or Jerusalem artichoke when the distillery is operated year round rather than seasonally.