But prices of commodities produced for local markets are extremely sensitive to supply. But two more growers could flood the market and totally depress prices. Specialty items also have limited markets. For example, the price of California kiwi fruit is only a fraction of its price level of several years ago due to a rapid expansion of acreage. But other factors may enter into the decision-making environment.
Farmers are limited to the crops they know how to produce.
Facilities or equipment may limit consideration of some enterprises. Some crops may have more risk and variability in income than the farmer is willing to accept. Thus, these crops cannot be considered. If a sizeable investment is required to begin an enterprise, capital may be the limiting factor. Labor may be the limiting factor for labor intensive ventures, and enterprises requiring a high degree of management may be limited by the operator's ability to manage several jobs.