Preisstützungen

Preisstützungen, also known as price supports, are a form of government intervention in agricultural markets. They are designed to ensure that farmers receive a minimum price for their produce, thereby stabilizing their income and encouraging continued production. This intervention typically involves the government setting a target price for a specific commodity. If the market price falls below this target, the government intervenes by purchasing the surplus product or by providing direct payments to farmers to make up the difference.

The primary goals of price supports are to prevent drastic fluctuations in farm income, which can be particularly vulnerable to market volatility and unpredictable weather conditions. By providing a safety net, governments aim to ensure a stable supply of essential agricultural products and to protect the livelihoods of farmers. However, price supports can also lead to unintended consequences. They can encourage overproduction, as farmers are incentivized to produce more when prices are guaranteed. This can result in the accumulation of government-held surpluses, which may require costly storage or disposal. Furthermore, price supports can distort market signals, making it difficult for consumers to benefit from potential lower prices in a truly free market. The economic efficiency of such interventions is often debated, with arguments for and against their use based on their impact on producers, consumers, and overall market dynamics.