Denaturation premium
Temporary payment to farmers who divert surplus food intended for human consumption into feed troughs. The products concerned, such as cereals or sugar, are rendered unfit for human consumption via the use of coloration or physical adulterants. – The purpose of this measure is to prevent market imbalance; because in the event of oversupply and price erosion, farmers will severely curtail their production, leading to sharply rising prices in the next crop year. – See apple crop closure, set-aside premium, cyclicality.
Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/