Signalling a possible shift in the administration's postion on ethanol subsidies, U.S. Agriculture Secretary Ed Schafer said this week that cuts in government ethanol subsidies are needed, according to Reuters. "The ethanol industry has incorporated the fact there are subsidies into their operational, financial models. I think that is a mistake," Schafer told reporters at a business journalism conference in Kansas City. "They are going to have to see a gradual ... step-down reduction in subsidies." USDA and the Environmental Protection Agency will roll out a biofuels action plan within the next few weeks, Schafer said. The plan will lay out what elements of the biofuels industry the government sees as sustainable and outline the government's ability to support the industry.