Perennial cellulosic feedstocks may have potential to reduce life-cycle greenhouse gas (GHG) emissions by offsetting fossil fuels. However, this potential depends on meeting a number of important criteria involving land cover change, including avoiding displacement of agricultural production, not reducing uncultivated natural lands that provide biodiversity habitat and other valued ecosystem services, and avoiding the carbon debt (the amount of time needed to repay the initial carbon loss) that accompanies displacing natural lands. It is unclear whether recent agricultural expansion in the United States competes with lands potentially suited for bioenergy feedstocks. Here, we evaluate how recent land cover change (2008-2013) has affected the availability of lands potentially suited for bioenergy feedstock production in the U.S. Lake States (Minnesota, Wisconsin, Michigan) and its impact on other natural ecosystems. The region is potentially well suited for a diversity of bioenergy production systems, both grasses and woody biomass, due to the widespread forest economy in the north and agricultural economy in the south. Based on remotely-sensed data, our results show that between 2008 and 2013, 836,000 ha of non-agricultural open lands were already converted to agricultural uses in the Lake States, a loss of nearly 37%. The greatest relative changes occurred in the southern half that includes some of the most diverse cultivable lands in the country. We use transition diagrams to reveal gross changes that can be obscured if only net change is considered. Our results indicate that expansion of row crops (corn, soybean) was responsible for the majority of open land loss. Even if recently lost open lands were brought into perennial feedstock production, there would a substantial carbon debt. This reduction in open land availability for biomass production is closing the window of opportunity to establish a sustainable cellulosic feedstock economy in the Lake States as mandated by current Federal policy, incurring a substantial GHG debt, and displacing a range of other natural ecosystems and their services.