Roughly 5% of all the corn produced annually in the US is food grade, and I believe after all markets have purchased their corn stock (for cattle, fuel production, ect), there is still a goverment subcidized suplus of close to 75%.
It has been said that the production of ethanol will increase the cost of corn based food products, but as long as we have the enormous surplus that exists today and that has been in existance for MANY years, we'll all be able to buy a taco for a dollar. If food prices do rise, you better believe it is due to other factors, mainly companies looking to take advantage of the current situation.
IMHO, enthanol production should be ramped up to maximum capacity and introduced into our gasoline supply, but only if a reduction in the cost of fuel is applied to compinsate for the deceased milage per gallon enthanol offers.
Ethanol is great, but people have to be ready to make changes to their cars.