– Government policies on agribusiness enterprises is the goals and methods used to bring desirable change in socioeconomic variables.

– The government intervenes in many markets, even markets which are highly competitive. – – The interventions can take a number of forms:

a) The control of prices: Fixing prices, either above or below the free-market equilibrium,

b) Taxation: Taxing of production or sale of various goods.

c) Subsidies: Subsidizing the production or sale of various goods

d) Buffer Stock: Taking over production

e) Regulation: Various laws could be passed to regulate the behavior of firms.