Indeed.  Were it not for the government subsidy of entrenched agribusiness interests, local food might actually be objectively cheap.  When you're growing food sustainably, you don't get as much of the kinds of economies of scale that give a $1 billion/year factory major cost advantages over a $1 million/year factory, so smaller farms aren't at a huge disadvantage there.  And there's no good reason for transportation or distribution costs to be very high.