I think farmers don't set their own prices, (there's nuance, but not really). They haul to middlemen who pay what they pay. Sometimes they even sell to transport companies / truckers that buy it to haul it to middlemen, both of whom pay what they can pay.
In that setting, the "regional" middlemen have the power to set prices, not the farmers, so a distant farmer from a poor community has no leverage over what teachers are paid in their community.
Generally speaking, I think almost all locally-produced, distributed industries work this way, by aggregating many producers the middleman has a ton of power to set prices, but of course is subject to the prices set by the next tier up, all the way to the commodities exchange, from what I can tell.
Anyway, this "averaging over a large area" ruins local economic efficiency.
In that setting, the "regional" middlemen have the power to set prices, not the farmers, so a distant farmer from a poor community has no leverage over what teachers are paid in their community.
Generally speaking, I think almost all locally-produced, distributed industries work this way, by aggregating many producers the middleman has a ton of power to set prices, but of course is subject to the prices set by the next tier up, all the way to the commodities exchange, from what I can tell.
Anyway, this "averaging over a large area" ruins local economic efficiency.