Economic Policy Questions
The role of subsidies in agricultural policy is to provide financial support to farmers and agricultural businesses. Subsidies are typically given by governments to help stabilize and support the agricultural sector, promote food security, and ensure a steady supply of affordable food. They can be used to incentivize farmers to produce certain crops, invest in new technologies, or adopt sustainable farming practices. Subsidies also aim to protect farmers from market fluctuations, price volatility, and natural disasters. However, they can also lead to market distortions, overproduction, and environmental concerns.