Explanation:

• Statement 1 is correct: The Commission for Agricultural Costs and Prices (CACP) studies the costs incurred by farmers in producing crops to recommend a Minimum Support Price (MSP) for various crops based on these costs. The government then announces the MSP for these crops.  

• Statement 2 is incorrect: The MSP is announced before the sowing or planting season. This allows farmers to plan their crops and investments based on the guaranteed price they will receive for their produce.

• Statement 3 is correct: One of the primary objectives of MSP is to protect farmers from selling their crops at low prices during times of bumper production. When there is a surplus of a particular crop, the market price may fall below the cost of production. MSP ensures that farmers can sell their produce to the government at a predetermined price, preventing them from incurring losses.

Hence option 2nd is correct.