Price Support Programs (PSPs)

Price Support Programs (PSPs) are government initiatives designed to stabilize markets by setting minimum or guaranteed prices for certain commodities, like crops or livestock. If market prices fall below these levels, the government steps in to purchase excess supply or provide financial support, ensuring producers can cover their costs. This reduces the risk for farmers and encourages supply, ultimately helping to maintain economic stability in agricultural sectors. PSPs aim to balance market fluctuations, protect farmers’ livelihoods, and ensure a steady food supply for consumers.