support price: meaning, definition, pronunciation and examples
C1Formal, Technical, Economic
Quick answer
What does “support price” mean?
A minimum price set by a government or organization to protect producers (especially farmers) from market fluctuations by guaranteeing a floor price for their goods.
Audio
Pronunciation
Definition
Meaning and Definition
A minimum price set by a government or organization to protect producers (especially farmers) from market fluctuations by guaranteeing a floor price for their goods.
Any artificially maintained minimum price intended to stabilize markets, protect vulnerable industries, or ensure producer income, often involving government intervention through purchases or subsidies.
Dialectal Variation
British vs American Usage
Differences
Terminology is identical. The concept and policy are common in both regions, though specific schemes (like the EU's Common Agricultural Policy or US Farm Bills) differ.
Connotations
Connotations are similar: can be seen as necessary protection for farmers or as market distortion and wasteful subsidy, depending on political/economic viewpoint.
Frequency
Slightly higher frequency in UK/EU contexts due to historical prominence of CAP discussions. In the US, 'price floor' or 'farm price support' are also common.
Grammar
How to Use “support price” in a Sentence
The government sets/announces/guarantees a support price for [commodity].Farmers receive/produce at/above the support price.The support price is fixed/pegged at [amount].Vocabulary
Collocations
Examples
Examples of “support price” in a Sentence
verb
British English
- The scheme is designed to support prices for domestic dairy producers.
- The EU used to support prices by buying surplus butter.
American English
- The Farm Bill aims to support prices for major row crops.
- The government intervened to support prices during the glut.
adverb
British English
- Not applicable as a standard adverb form.
American English
- Not applicable as a standard adverb form.
adjective
British English
- The support-price mechanism is under review.
- They criticised the support-price policy as inefficient.
American English
- The support-price program cost billions last year.
- A new support-price proposal is before Congress.
Usage
Meaning in Context
Business
Discussed in commodity trading and agribusiness reports regarding risk and revenue projections.
Academic
Analysed in economics papers on market failure, welfare economics, and trade distortion.
Everyday
Rarely used. Might appear in news about farming protests or food price debates.
Technical
Central term in agricultural policy documents, WTO negotiations on subsidies, and farm legislation.
Vocabulary
Synonyms of “support price”
Strong
Neutral
Weak
Vocabulary
Antonyms of “support price”
Watch out
Common Mistakes When Using “support price”
- Using 'support price' as a verb (e.g., 'The government will support price wheat'). Correct: 'The government will set a support price for wheat.'
- Confusing 'support price' with 'subsidy'. A subsidy is a direct payment; a support price is a price level, often enforced by subsidy.
FAQ
Frequently Asked Questions
No, but they are closely related. A support price is a specific price level. A subsidy is often the financial tool used to maintain that price (e.g., the government pays farmers the difference between the market price and the support price).
Producers (especially farmers) are the direct beneficiaries, as it guarantees them a minimum revenue. Consumers and taxpayers often bear the cost through higher prices or taxes funding the scheme.
They can lead to overproduction (as farmers are guaranteed a sale), creating costly surpluses. They can also distort trade and disadvantage producers in countries without such supports.
By definition, a support price is a form of market intervention, so it modifies or operates alongside a free market rather than existing within a purely free market system.
A minimum price set by a government or organization to protect producers (especially farmers) from market fluctuations by guaranteeing a floor price for their goods.
Support price is usually formal, technical, economic in register.
Support price: in British English it is pronounced /səˈpɔːt praɪs/, and in American English it is pronounced /səˈpɔːrt praɪs/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “A safety net for farmers”
- “To prop up prices”
Learning
Memory Aids
Mnemonic
Imagine a floor (SUPPORT) holding up a falling PRICE tag to stop it from crashing to the ground.
Conceptual Metaphor
PRICE IS AN OBJECT; SUPPORT IS A PHYSICAL PROP (like a floor or a crutch) preventing it from falling.
Practice
Quiz
What is the primary purpose of a support price?