Korea’s Agriculture Sector Enhances Support for Farmers
In a proactive response to ongoing economic challenges, Korea’s agriculture sector is rolling out new support measures designed to bolster farmers’ livelihoods. These initiatives, announced by the Ministry of Agriculture, Food and Rural Affairs during a recent meeting chaired by Acting President Choi Sang-mok, focus on improving income stability and promoting sustainable agricultural practices.
Increased Financial Support for Farmers
To elevate the baseline income for agricultural workers, the government will raise the introductory area payment unit price by 5%. This increase brings the price range from 1 million to 2.05 million won per hectare to a new range of 1.36 million to 2.15 million won. Additionally, criteria for direct payments will be relaxed, moving away from the current farm income limit of 37 million won.
These changes aim to extend financial benefits to a more significant segment of the farming community. Moreover, the introduction of agricultural income stabilization insurance is set to offer broader protection against risks associated with natural disasters and price volatility in markets. This initiative is complemented by planned government support for tariffs on imported raw materials for fertilizers and feed, addressing the impact of rising exchange rates on farmers’ operations.
Regulatory and Structural Changes
Significant changes are also in store regarding farmland regulations. The government will broaden the use of agricultural land to include weekend experiential farming and related industries, while simplifying ownership qualifications and acquisition processes. Tax incentives are under consideration to promote “joint farming,” which is a stepping-stone toward corporate agriculture. A commitment of over 100 billion won will be directed toward the development of emerging industries such as food technology and green biotechnology, signaling a strategic shift in agricultural investment.
Focused Management of Key Crop Products
The government has identified ten essential agricultural and livestock products—such as napa cabbage, garlic, and Korean beef—for enhanced supply and demand management. The contracted cultivation volume for key vegetables is set to increase from 25% to 30% to match market needs better. Additionally, a new model for overseas agricultural development will ensure consistent imports of critical products.
Enhancing Food Industry Dynamics
New initiatives will also address the challenges faced by small businesses within the food and restaurant sectors. A public delivery app platform is scheduled for launch in March, with the aim of reducing delivery fees from 9.7% to less than 2%, providing significant relief to local establishments.
Strategic Initiatives for Agricultural Reform
The government’s reform plan includes a shift towards quality rice production rather than quantity. Efforts to reduce rice cultivation area by 80,000 hectares will be pursued in collaboration with local governments, alongside pilot programs for high-quality rice production complexes across provinces. To facilitate a more modern approach, the government aims to explore tax measures to encourage joint farming initiatives, which include contract farming and land leasing arrangements.
Future Outlook: Industrializing Agriculture
The Ministry has outlined four pivotal projects aimed at the industrialization and modernization of agriculture, including smart farming, advancements in food technology, and expansive research and development efforts focused on enhancing the K-Food+ export initiative. The export target for the K-Food+ initiative is set at an ambitious $14 billion as part of a comprehensive strategy to open new markets. Minister Song Mi-ryeong emphasized, “This year, stabilizing livelihoods will be our top priority, and we will focus on resolving the difficulties of farmers in the first half of the year,” reinforcing the government’s commitment to nurturing a sustainable agricultural environment for the future.
Conclusion
As Korea’s agriculture sector adapts to new economic realities, these initiatives are designed to secure the livelihoods of farmers while promoting sustainable practices and modernization. Through strategic investments and regulatory reforms, the government aims to foster resilience and innovation within this vital sector.
