Agriculture Subsidies Law and Legal Definition

Agriculture subsidies mean the financial assistance provided by government to farmers through government-sponsored price-support programs. The objective behind providing agriculture subsidies is to provide benefits to farmers and thereby stabilize food prices, ensure plentiful food production, and to guarantee basic income to farmers. In U.S. and France, agricultural subsidies are designed to increase farm income by raising the long-term level of prices above free-market levels or by providing direct payments to farmers. Agricultural subsidy helps to influence the cost and supply of commodities such as wheat, feed grains, cotton, milk, rice, peanuts, sugar, tobacco, and oilseeds such as soybeans.