By Jim Vickerman, Guest Column

Media reports blaming farm profits and ethanol production for higher food costs are presenting a distorted view of the issue. The stories ignore all of the other variables that are affecting food prices. This is analogous to putting together a jigsaw puzzle using only two pieces from the box.

It gives you an incomplete picture.

In order to see the whole picture you need to look at higher fuel prices, the rising costs of farm inputs, food processing and marketing costs, commodity market speculation, and increased food exports to other countries.

Diesel prices have skyrocketed this past year. Just ask any farmer or trucker. Higher diesel prices impact every step of food production, from farmers&8217; costs for planting, cultivating, harvesting, and transporting goods to food processors, to shipping the finished food products to the grocery store.

High fuel prices and increasing labor costs are the major reasons behind the high cost of food, according to a report just released by the Federal Reserve Board.

The report states that &8220;marketing&8221; costs, which are the costs that get added to food between the farm and the consumer, are responsible for high food prices.

Those marketing costs have increased over the years, from about 60 percent of the cost of food, to 80 percent of today&8217;s overall food prices.

In other words, the farmer receives only 4 cents for that $6 box of corn flakes you bought at the grocery store, and the rest goes to the middle man.

Food exports to other countries also contribute to higher food prices. The world population has increased by 1 billion over the last decade, and that has resulted in greater demand for food.

U.S. exports of food were up significantly last year, and that looks like the trend for the future. Global competition for food is driving food prices higher.

Investors are speculating on the burgeoning commodities market and driving-up food prices. Wary of the volatile stock market, they are now betting on the increased cost of commodities, resulting in record trading prices for the future delivery of grains.

Finally, the cost of farm inputs are increasing rapidly. Farmers have seen a significant increase in the cost of seed, fertilizer, pesticide, farm implements, cash rent and crop insurance. In addition, farm property taxes are much higher due to skyrocketing land values caused by urban sprawl.

Higher production costs sometimes get passed on to consumers, just like all businesses.

Ethanol production certainly has some impact on food prices, but farmers have also planted more crops to meet the increased market demand for both food and biofuels. America has recognized a public benefit from the national goal of developing biofuels. They are good for the environment, good for the rural economy, and they are leading our nation in the goal of becoming independent from foreign oil.

Understanding the reasons for rising food costs is difficult, but a critical analysis requires us to consider all of the contributing factors. When we take a more thoughtful and complete look at the facts the picture becomes clear. U.S. farmers are producing an abundance of food to the global marketplace, and Americans still enjoy the most affordable food in the world.

State Sen. Jim Vickerman is a Democrat from Tracy. He represents District 22.