Alternative Fuels
The simple answer to your question is that bio diesel/ethanol, are currently produced at an energy deficit, ie, more energy (fuel, fertilizer, pesticides, herbicides, machinery, actual production of the fuel itself) goes into the production of the biomass than the biomass can produce.
The only reason the biofuels idea is relevent is because the biomass used in it's production is currently waste or a byproduct. I agree that finding a method to use this otherwise waste material definately has merit. However, growing crops (even hemp) strictly for the production of biofuels is not an environmentally or economically sound idea.
Biofuels are somewhat self defeating. They are marginally economic to produce with the current price of biomass - ie FREE(only subisidies make them at all competetive). Like you stated, if this biomass begins to have a value, not only will it affect those producing it, for the good and the bad, but it will seriously strain the economic aspects of biofuel production.
Waxy



