What is the primary purpose of agricultural subsidies?

The primary purpose of agricultural subsidies is to support farmers and stabilize food production. These financial aids provided by governments are intended to help farmers maintain their livelihoods, especially in times of market fluctuations or adverse weather conditions. By offering subsidies, governments can help reduce the financial risk for farmers, ensuring that they continue to produce food even when prices are low or production costs are high.

Stabilizing food production is crucial for food security, as it ensures a steady supply of agricultural products to meet the demands of the population. Furthermore, these subsidies can help encourage the adoption of sustainable practices and new technologies, thereby increasing agricultural productivity over time. By supporting farmers, subsidies also play a key role in maintaining rural economies and job opportunities in agricultural regions.