Why would centralization of agriculture increase efficiency?
1. Economy of place: It is more efficient to grow oranges in Florida than in a heated greenhouse in upstate New York (or, to use the classic example, wine in Portugal than in England). 2. Economy of scale: It is more efficient for one man to grow ten orange trees than ten men to each grow one for a variety of reasons. 3. Specialization of knowledge processes: A contributor to #2 above, but particularly important in the era of increasingly scientific and knowledge intensive farming—farmers can afford to specialize in farming, whereas people who are only part-time farmers cannot to the same degree. 4. Justification for intensive capital expenditure: An industrial farmer can justify the expense of a complex combine harvester that automates processes, whereas a small holder may not be able to. B. Why would decentralization of agriculture increase efficiency? 1. Transportation & operation cost: decentralized farming has the potential to require transportation over shorter distances to marke