The area of land required to produce sufficient bio-diesel and bio-ethanol to meet the targets set out in the UK's Renewable Transport Fuel Obligation (RTFO), which requires 5% of all petrol and diesel sold on forecourts to be biofuel by 2010, can be found without prejudicing food production capacity.
What has been holding back agriculture in the developing world is not a shortage of land, but the rock-bottom prices caused by the fact that world markets have been swamped by surplus grain, from both the EU and US.
If the demand for biofuels helps to change that, directly by lifting prices and indirectly by mopping up the surpluses, then it will give Third World farming the biggest single boost it has ever had.
That, in turn, will do more to alleviate starvation in Africa and elsewhere than all the food aid programmes put together.
More:
http://news.bbc.co.uk/2/hi/science/nature/5406458.stm
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