Intervention price is a government-set minimum price level at which agricultural products or commodities will be purchased to support farmer incomes and market stability. These support mechanisms prevent prices from falling below economically viable levels while ensuring adequate production incentives. Intervention prices are common in agricultural policy frameworks worldwide.

Intervention pricing systems can distort market mechanisms by creating artificial price floors that may not reflect actual supply-demand fundamentals. When market prices approach intervention levels, government purchases can significantly impact trading dynamics and global commodity flows. Understanding intervention policies is crucial for agricultural commodity trading and food security analysis.

Real-world example: The European Union sets wheat intervention prices at €101.31 per ton, providing a price floor that supports farmer incomes during oversupply conditions while creating trading opportunities when market prices approach intervention levels.