The provision of farm inputs to farmers by the government can best be described as
Answer Details
The provision of farm inputs to farmers by the government can best be described as a subsidy.
A subsidy is a form of financial assistance given by the government to reduce the cost of products or services, making them more affordable for the public. When the government provides farm inputs such as seeds, fertilizers, and equipment at reduced costs or even for free, this helps farmers to lower their production costs. By doing so, farmers can produce agricultural goods more efficiently and affordably, leading to increased agricultural output and potentially lower prices for consumers.
Providing farm inputs as a subsidy can encourage agricultural productivity, support small-scale farmers, and boost the agricultural sector's overall growth and contribution to the economy. Unlike a loan or credit, which must be repaid, a subsidy does not require repayment, making it a direct form of assistance to farmers.