Actually, the higher prices in food can be attributed to the higher prices of gas more than the increased demand for corn. Considering some semis have to fill up for $1500, that causes the end user to make up that difference.
Now corn demand is causing some price increases, but mostly to people in Mexico as they are the main source of our corn export. But beef prices have increased because of the price of corn. This is because corn is their primary food source, so that does suck. Cows are delicious...
When it comes to your car running E85, there is a lot of truth to some of these remarks. Any car right now can run on E85, but not every car will last. It eats away all rubber seals and gaskets. To make it run ethanol for a longer period of time you need to switch out your gaskets for prolly some copper ones and fuel lines for SS.
It is true there is less energy per unit volume in ethanol. Having said that, I find it VERY difficult to believe it causes higher internal temperatures in the engine. We all remember the laws of conservation of energy which states energy cannot be created or destroyed. It can only change its form. This is evident in engines where the energy from gas gets converted to mechanical motion and heat. Seeing as there is the same mechanical motion, but with less energy per unit volume, there is no way that the heat energy will increase. Thats like saying 2+2=4 for gas, but 2+2=5 for ethanol. But I could be wrong.(uhm)
Now, corn as a source to create ethanol is definitely not the best. Brazil has been running ethanol for years, but they make theirs out of sugar cane. We decided to go with corn because it is abundant and easy to grow. Once the demand for ethanol increases in the US, I am sure you will see other sources emerge as the primary source of ethanol.