The assistance given to farmers by government in form of a reduction in price is generally referred to as
Answer Details
The assistance given to farmers by the government in the form of a reduction in price is generally referred to as a subsidy. A subsidy is a form of financial assistance given by the government to support a particular activity or industry, in this case, agricultural production.
In agriculture, subsidies are given to farmers to help them reduce their production costs by providing financial support for inputs like fertilizers, seeds, and pesticides. This helps farmers to increase their yields and profits, which in turn leads to an increase in the supply of food and a reduction in the price of food in the market.
Moreover, subsidies encourage farmers to adopt modern technology and improve their farming practices. By reducing the cost of inputs, farmers can afford to invest in new equipment and technologies that improve the efficiency of their farming operations.
In summary, a subsidy is the assistance given to farmers by the government in the form of a reduction in price. It is a form of financial support that helps farmers to increase their production and income, adopt modern technologies and practices, and ultimately contributes to an increase in the supply of food and a reduction in the price of food in the market.