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Boundless Economics
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Chapter 37

Agriculture Economics

Book Version 3
By Boundless
Boundless Economics
Economics
by Boundless
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Section 1
Introduction to the Agriculture Economics
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The Agricultural Market Landscape

The agricultural market landscape is the economic system that produces, distributes, and consumes agricultural products and services.

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Subsidies and Income Supports

An agricultural subsidy is a government grant paid to incumbents in the industry to reduce costs and influence the supply of commodities.

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Price Supports

Price supports are subsidies or price controls used by the government to artificially increase or decrease prices in the agriculture market.

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Supply Reduction

Agricultural aggregate supply can be reduced through external capacity potential or governmental interventions.

Evaluating Policies

Agriculture requires a vast support system and a great deal of oversight, addressing industry threats and utilizing policy-based tools.

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