(…) Amid heightened concern about global climate change, it has become almost conventional wisdom that we must return to our agricultural roots in order to contain the carbon footprint of our food by shortening the distance it travels from farm to fork, and by reducing the quantity of carbon-intensive chemicals applied to our mono-cropped fields.
But implicit in the argument that local farming is better for the environment than industrial agriculture is an assumption that a “relocalized” food system can be just as efficient as today’s modern farming. That assumption is simply wrong. Today’s high crop yields and low costs reflect gains from specialization and trade, as well as scale and scope economies that would be forsaken under the food system that locavores endorse.
Specialization and Trade
Economists have long recognized the welfare gains from specialization and trade. The case for specialization is perhaps nowhere stronger than in agriculture, where the costs of production depend on natural resource endowments, such as temperature, rainfall, and sunlight, as well as soil quality, pest infestations, and land costs. Different crops demand different conditions and vary in their resilience to shocks. So California, with mild winters, warm summers, and fertile soils produces all U.S.-grown almonds and 80 percent of U.S. strawberries and grapes. Idaho, on the other hand, produces 30 percent of the country’s russet potatoes because warm days and cool nights during the season, combined with rich volcanic soils, make for ideal growing conditions.