Under a target price system,the government can adjust the deficiency payment paid to a farmer by deciding to pay some percentage of the difference between the target price and the market price.

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Under a target price system, the government does adjust the deficiency payment by paying a percentage of the difference between the target price and the market price. This is done to support the income of farmers and stabilize agricultural markets.

Under a Target Price System,the Government Can Adjust the Deficiency