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1 [mass noun] the policy of taking land out of production to reduce crop surpluses: government subsidies could be an alternative to set-aside [as modifier]: grants for providing public access to set-aside land
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land taken out of production under the set-aside policy: he has fifty acres of set-aside
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2US a government contract awarded without competition to a minority-owned business.
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3US a portion of funds reserved for a particular purpose.