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Price Support

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Price support
Government intervention to set an artificially high price through the use of a price floor designed to aid producers.
Price Support
A government subsidy that keeps the price for a good or service higher than it otherwise would be. For example, the government may set a price support for milk by mandating that suppliers may not accept anything less than the stated price. Price supports exist to protect the livelihoods of suppliers who cannot afford a price war or anything approaching one;many economists oppose price supports because they claim they interfere with competition and the free market.
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Department of Agriculture in July announced a temporary increase in the amount paid for dairy products through the Dairy Product Price Support Program, left Holmes and more than 100 New Hampshire dairy farmers breathed a sigh of economic relief.
Dairy farmer Jeff Holmes by McCord, Michael / New Hampshire Business Review
Department of Agriculture's Dairy Price Support Program is designed to moderate price swings.
Dairy farmers need help by The Register-Guard (Eugene, OR)
USDA has published a regulation setting out requirements for the milk income loss contract (MILC) program and the dairy price support program until 2012.
USDA proposes operational rules for MILC by The Food & Fiber Letter
 
 
 
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