Surplus: The amount by which available supplies are greater than the quantity that will bring producers an adequate income. A surplus may be due to production outrunning demand, a decline in consumption, or a general decline in consumer income or buying power. Historically, commodity programs have been designed to deal with 'problems' of surplus, and the Secretary of Agriculture has had discretion to determine whether an item is in surplus and should be removed from market channels to shore up prices. Approaches have included cropland diversion to reduce production, long-term storage of excess supplies, and purchase and donation of surplus items for foreign or domestic food program use.

 

Related Words

Surplus: The amount that remains when an insurer subtracts its liabilities and capital from its assets.

Acquired Surplus: The surplus acquired when a company is purchased in a pooling of interests combination, i.e. the net worth not considered to be capital stock.

Regulatory Surplus: The surplus as measured using regulatory accounting principles (RAP), which may allow the nonmarket valuation of assets or liabilities and which may be materially different from economic surplus.

Trade Deficit Or Surplus: Accounts payable.