What is a shortage payment?
The payment of a deficiency is a direct grant to compensate for farmers for the difference between the guaranteed price and the actual market value of the commodity. Such payments are available for manufacturers of a limited number of commodities in some countries. They ensure that farmers continue to produce crops of critical significance, even if the market price falls because the basic price is guaranteed. As a result, it is feasible to continue production than to replace the crop with a more profitable alternative. Providing payments with deficiency can be somewhat controversial in some regions. It sets out the basic guaranteed price on the basis of market factors and other conditions. When the crop is ready for the market, if farmers cannot obtain this price, they can apply for a shortage payment. This compensates for them the difference between the actual sales value of the crop, if they would earn a guaranteed price.
Some governments also provide temporary loans at the time of harvest. This allows farmers to keep ownership of crops long enough to allow the prices of variety ofAZIT from the minimum that usually evolves when the market is flooded when farmers bring harvesting. This is often financed through a shortage program or is closely linked. It provides farmers an incentive to continue growing crops covered with programs to ensure availability for the general public.
To make the farmer usually meet some standards. These include proof that the crop was made, with the documentation on the price and the circumstances of the sale. In addition, farmers may have to prove that they adhere to environmental regulations and reasonably protect their workers. Farmers who have been fined for Pollation and other violations of the law may lose the right to adopt payments because the government does not want to encourage dangerous or impractical agricultural activities.
The exact structure of the payment program with deficiency may depend on the policies set by the regulatory bodiesand legislators. Legislators regularly consider new agricultural accounts, law packages that cover various objects related to agriculture. They can determine what types of financial assistance to farmers and how to manage these programs to be effective and functioning. Information is available for farmers and agricultural companies through the same government agencies that process the program.