Only one third of the farmland in the USA is being used at this time.
When all cars sold in the USA have Flexfuel motors alcohol will become more widely available. When this happens OPEC will drop their oil prices dramatically. The lower fuel prices will make food production cost much less than it does now. In the long run it will benefit the poor nations and rich nations alike. Alcohol fuel will allow poor nations to keep their money within their own countries instead of sending it to members of OPEC.
With a huge demand for alcohol created by a Flexfuel mandate many alternative sources of alcohol will appear. It can be made from many forms of waste. Cellulose is a source for it. Even coal can be converted to methanol. There are other types of alcohol too such as butanol and propanol.
Watching the video lecture about this topic really does answer many concerns about alcohol as a fuel source. Overall it really benefits poor nations economies by huge amounts. It will almost instantly raise their standards of living.