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Agriculture vocabulary · Trade, Markets and Subsidies

Direct payment

Meaning in agriculture, with examples

nounCommon term

In agriculture, direct payment means: Money paid by the government straight to farmers, often per hectare of land, to support their income rather than the price of a product.

In Turkish: doğrudan ödeme, doğrudan destek, alan bazlı destek

How it is used

A key tool of the EU's Common Agricultural Policy, where most direct payments are 'decoupled', meaning not linked to what or how much is produced. Farmers claim them each year by declaring their land.

Example sentences

  1. For many small farms, the direct payment is the difference between profit and loss.

  2. To receive direct payments, farmers must meet basic environmental rules.

Common collocations

  • direct payments
  • decoupled payment
  • area-based payment
  • claim direct payments
  • payment per hectare
  • subsidyMoney or other support paid by the government to farmers to keep production profitable, lower costs or encourage certain practices.
  • Common Agricultural PolicyThe European Union's shared agricultural policy, started in 1962, which supports farm incomes, rural development and environmental goals across member states.
  • hectareA metric unit of area equal to 10,000 square meters, or ten decares; the standard unit for land and yields in international agriculture.
  • crop insuranceInsurance that pays farmers compensation when their crops are damaged or their yields fall because of hail, frost, drought, flood or other covered risks.
  • smallholderA farmer who works a small area of land, often a few hectares or less, mainly with family labor and limited capital.

More terms: Trade, Markets and Subsidies

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