This passage need analysis and breakdown .

In the last couple of years I have seen a shift in demand and supply for oranges. In the Sep 2017, Hurricane Irma struck the Florida coast and it resulted in destruction of orange crop. As a result, the supply curve shifted to the left in the last few years there has been no profit in small local agricultural business. After speaking to a local farmer at the farmers market. He explained how decided a couple of years ago that demand for Naval Oranges was extremely low. After looking at his opportunity cost, supply, and demand he decided that it would be better for the farm to rip out the Naval orange tree then continue harvesting them and trying to sell them.

As much as people want to buy local, they are not willing to pay the price that it cost to keep a small local farm in business. The cost of labor has gone up therefore the cost of the oranges has to go up to cover the cost of labor. When the oranges are shipped to big grocery stores, such as Walmart or Publix, they are coming usually from large farming operations that allow the cost of the oranges to stay within reason. When a local farm is not contracted with a store to pay for the product, they must make sure they have the market to sell the product in. Within the last few years, the demand for locally grown oranges in my area has not had the demand, therefore the supply has also gone down. Since the demand has decreased and the supply has decreased, the other orange farms around the area have not had to change their price, as it seems the equilibrium has stayed balance.