Production is the manufacturing of the item. Distribution is the transportation, promotion, or delivering of the item.
Examples:
Phones are produced in a factory. They are useless though unless they are distributed to the stores so that they can be sold to consumers.
The same can apply to commercial crops. Crops are all produced commercially and then distributed to thousands of grocery stores so that they can be sold.
If the region rises in population it will most likely cause a bigger scarcity in water, which may lead to a drought. A drought can ruin crops and leave land dry.
