intervention price
C1Formal, Technical, Economic
Definition
Meaning
A minimum price set and maintained by a government or an official body (like the EU) for an agricultural commodity, at which they will buy surplus produce to support farmers and stabilize the market.
Any officially set price level at which a public authority steps in to buy, sell, or otherwise regulate a market to prevent prices from falling below (or rising above) a certain point. While most common in agriculture, the concept can be applied to other markets (e.g., currency, energy).
Linguistics
Semantic Notes
The term inherently implies government or institutional action ('intervention') to alter market outcomes. It is not a market-determined price. Often part of a broader 'price support' or 'Common Agricultural Policy' mechanism. The focus is on the price *point* that triggers the action.
Dialectal Variation
British vs American Usage
Differences
The term is more commonly used in a UK/European context due to the historical prominence of the EU's Common Agricultural Policy (CAP). In the US, similar mechanisms exist but are more often discussed as 'price supports', 'loan rates', or 'target prices' within specific farm bills.
Connotations
In the UK/EU, it is strongly associated with EU agricultural policy, sometimes with connotations of bureaucracy, market distortion, or taxpayer expense. In the US, the equivalent terms carry similar political and economic connotations within domestic farm policy debates.
Frequency
Higher frequency in UK/EU political and agricultural discourse. Lower frequency in general American English, where the concept is described with different terminology.
Vocabulary
Collocations
Grammar
Valency Patterns
The [AUTHORITY] set an intervention price for [COMMODITY]The market price fell below the intervention price.Surplus milk was bought at the intervention price.Vocabulary
Synonyms
Strong
Neutral
Weak
Vocabulary
Antonyms
Usage
Context Usage
Business
Used in commodity trading reports and agribusiness analysis: 'The grain was sold to the intervention agency.'
Academic
Featured in economics, political science, and agricultural policy texts discussing market regulation and subsidies.
Everyday
Rarely used. Might appear in news reports about farming or EU policy.
Technical
A precise term in agricultural economics and EU law, defining a specific mechanism of the Common Agricultural Policy.
Examples
By Part of Speech
verb
British English
- The EU may **intervene** if dairy prices collapse.
- Authorities are prepared to **intervene** in the grain market.
American English
- The USDA has the authority to **intervene** under the Farm Bill.
- The government chose not to **intervene** in the soybean market.
adverb
British English
- The agency acted **interventionally** to stabilise prices.
adjective
British English
- The **interventionist** policy was criticised by free-trade advocates.
- They discussed **intervention** mechanisms.
American English
- The **interventionist** approach to agriculture is debated in Congress.
- The farm bill outlines **intervention** procedures.
Examples
By CEFR Level
- The government has an intervention price for wheat to help farmers.
- When the market price for butter fell below the EU intervention price, stocks were bought into public storage.
- Critics argue that the Common Agricultural Policy's intervention price for sugar creates massive surpluses and distorts global trade.
Learning
Memory Aids
Mnemonic
Imagine the government INTERVENING in an auction (INTERVENTION) when the bid for wheat gets too low, shouting 'Stop! The PRICE is now officially this much.' That's the INTERVENTION PRICE.
Conceptual Metaphor
A SAFETY NET for prices; a GOVERNMENT-BUILT FLOOR below which prices cannot fall.
Watch out
Common Pitfalls
Translation Traps (for Russian speakers)
- Avoid прямой перевод as 'цена вмешательства' as it sounds unnatural. The established Russian equivalent in economics is 'интервенционная цена' or 'гарантированная цена'. Do not confuse with 'рыночная цена' (market price).
Common Mistakes
- Using it to describe any government-influenced price (e.g., a price cap on rent). It specifically implies buying surplus to support a *minimum* price. Confusing 'intervention price' with 'subsidy' (a subsidy is a payment; an intervention price is a trigger for purchase).
Practice
Quiz
What is the primary purpose of an intervention price?
FAQ
Frequently Asked Questions
No, they are related but distinct. An intervention price is the specific price point that triggers government purchase. A subsidy is a broader financial aid. The purchase at the intervention price is one *form* of subsidy.
Usually a governmental body or a supranational entity like the European Commission (historically for the EU's Common Agricultural Policy).
Typically, no. An intervention price is usually a *floor* to stop prices falling too low. The mechanism to stop prices rising too high is often called a 'price ceiling' or 'cap'.
Its origin and primary use is in agricultural policy. However, the concept can be applied analogously to other markets (e.g., a central bank's 'intervention' level in currency markets), but the specific phrase 'intervention price' is less common there.