There may not be a shortage but people would buy less of that produce, prices would go up to cover the higher wages. Unless you subsidize aggressively. Tricky market since people need food to survive.
Cheaper CoL, that's why importing cheap goods from cheap countries and focusing on technology is the bet one should place. That way you have time and resources to spent developing the technology for automating everything. It's like a business, the butcher is not out in the field with the cows he just butchers, separation of concerns.