How do government subsidies benefit farmers and... - SS2 Agriculture Role of Government in Agricultural Production Question

Government subsidies in agriculture provide financial support to farmers, making essential inputs like fertilizers, seeds, and irrigation more affordable. They help reduce the cost of production, increase agricultural productivity, and ensure food security. Common types of subsidies include input subsidies, price support subsidies, and income support subsidies. Input subsidies directly reduce the cost of inputs, price support subsidies guarantee minimum prices for crops, and income support subsidies provide financial assistance to farmers based on their income levels.