There are two key problems.
Firstly the change in use of arable land to biodiesel agriculture is creating an unholy competition between food for people, and "food" for cars, which has resulted in huge hikes in the price of food crops such as wheat, causing increasing starvation and poverty globally.
Secondly even if ALL global land use were turned over to biodiesel production, it would still be nowhere near enough. Presently 20% of US argricultural land is only producing enough biofuel for 2% of vehicles.
(source and reference http://www.monbiot.com/archives/2005/12/06/worse-than-fossil-fuel/)
So when will people wake up to this?
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