The Problem with Bio Fuel

A question has been bothering me for awhile. The more I think about bio fuel the more I am wondering if it is really feasible. The cost of bio fuels currently is not economical. Not just in financial terms, but also because of the water requirements.
Water is a resource the world is in need of conserving. The shortage of water is an ever increasing concern globally. The water shortage is caused by bad management. In this world we grow crops in countries where they shouldn't be grown. Thus we are wasting water and creating a shortage. Wheat grows better in the US and China, yet they grow it in India and Brazil where it is as economical.
When we take the water requirements of feed for bio fuels we must question the solution everyone seems intent on pursuing.

Can we afford bio fuels, if it creates further water shortages?


3/4 of the world's water usage goes to agriculture.