The principal form of direct farm income support is
A) Price supports.
B) Supply restrictions.
C) Costs subsidies.
D) Countercyclical payments.

Question

Quizplus · Accepted Answer

Countercyclical payments are the principal form of direct farm income support. These payments are designed to provide farmers with a safety net when prices for their crops or livestock fall below a certain threshold. The payments are based on the difference between the target price and the actual price received by the farmer. Countercyclical payments are designed to help farmers during periods of low prices, which can be particularly devastating for those who rely on farming as their primary source of income.

The Principal Form of Direct Farm Income Support Is