TeachMeFinance.com - explain Price support
Price support The term 'Price support ' as it applies to the area of agriculture can be defined as ' Programs operated by USDA that are intended to raise farm prices when supply exceeds demand and prices are unacceptably low. Support usually is achieved through nonrecourse loans, payments, and purchases. Some commodities are designated in the law to receive mandatory support; others may be supported at the discretion of USDA. Over time, policy changes have shifted toward farm income support and away from commodity price support'.
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