Comparative Advantage in Agriculture

Comparative advantage in agriculture occurs when a country or farm specializes in producing certain crops or livestock more efficiently than others, meaning it faces lower opportunity costs. This specialization allows for increased overall productivity and trade efficiency, as each region focuses on what it does relatively better. For example, one farm might produce wheat more efficiently, while another excels at dairy. By trading, both can benefit — each gets more of both products than if they tried to produce everything themselves. This concept encourages optimal resource use and higher overall agricultural output through specialization.