A subsidy is money paid to support an activity that would otherwise be unprofitable, or paid by a state to make something cheaper for producers or consumers. Agricultural subsidies are the most important kind in the food world: the European Union’s Common Agricultural Policy, US farm payments, and similar schemes worldwide shape what farmers grow, how much food costs, and who can compete in global markets. Supporters argue subsidies protect food security, rural livelihoods, and stable prices; critics say they encourage overproduction, environmental damage, and unfair competition that undercuts farmers in poorer countries. Food prices on the supermarket shelf are therefore never purely a matter of supply and demand — policy is baked in.