Deficiency Payment

Deficiency Payment

Definition: deficiency payment

deficiency payment: Payment made to a producer when the price for a commodity at the market does not reach a preset guaranteed price. Deficiency payments can provide financial stability for farmers during periods of low market prices. Farmers should stay informed about eligibility requirements and application processes for deficiency payments to take advantage of this support. Understanding market trends and diversifying income sources can also help mitigate the impact of low prices.