Yes - right from the start, Ford imagined hemp and ethanol fueled cars
There could be profit in it if we retrofit existing cars and the biofuels came from non-intensive sources like restaurants grease and farms' waste.
The movie "who killed the electric car" demonstrates your point quite well though!
It comes down to better education, leadership and planning to migrate from the oil dependency - this is what is lacking and it doesn't have to come from government.
RE: Will Sustainability Kill or Enslave Us All? Part 1