There are vast amounts of unused land in poor places like Africa that can be used to grow crops for biofuels that will in turn help the poor by creating industry in their area. It just needs time.
The rise in the cost food is attributible to the rise in the price of oil as much as it is in the price of corn and crops. In fact, if there was no ethanol in the current supply or the prospect of more effeciently produced ethanol in the future we'd be seeing even higher energy prices.
Producing ethanol from corn is not as effecient as producing it from grass, waste, etc., using cellulosic technology but right now corn ethanol is a placeholder for the more efficient cellulosic ethanol while the infrastructure (plants, transportation, dispensers) is being established.