Higher commodity prices have been a boon to Iowa grain farmers, raising farm income and raising the hopes of a new generation of farmers. But just as these farmers begin to enjoy a rare profitable period in agriculture, it's beginning to rain on their parade.

Mainstream news media outlets have begun trumpeting the view that the use of corn to make ethanol is somehow causing food shortages around the globe. Higher prices for everything at the grocery store have caused a lot of folks to look for a scapegoat, and biofuels are an easy target.

The argument certainly makes sense on the surface: Doritos must be expensive because the market price of corn is high. But it's just not that simple.

While the new demand created by ethanol plants has caused a tightening of corn supplies, there are many, many other worldwide factors at play that have caused inflation of food prices.

The largest factor causing such inflation may be the hungry masses in rapidly developing nations in Asia who have found themselves for the first time with a little extra spending money. The newly moneyed Chinese are gobbling up food at a pace unheard of just a few years ago. Now that these folks are enjoying a higher standard of living, their diets are expanding accordingly. It's putting pressure on agriculture all around the world to step up the pace of production.

A major drought and crop failure in Australia last year is another factor that caused global wheat supplies to tighten significantly. Wheat prices skyrocketed as a result, and it will take a big wheat crop this year to make up the difference.

Global market prices for corn, soy oil, wheat and rice are all much higher than they were just one year ago. But these commodities are not alone. Crude oil prices are near record highs, as well. Really, everything is more expensive, from food to fiber to fuel. read more at iowaindependent.com