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Increase in Fixed Direct Payment for Rice for 2014 in Korea
2014-04-01
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Dr. Jeongbin Im

Professor

Department of Agricultural Economics and Rural Development

College of Agricultural and Life Science

Seoul National University

Seoul, Korea

E-mail: jeongbin@snu.ac.kr

 

The Ministry of Agriculture, Food and Rural Affairs (MAFRA) announced that it will increase the unit price of fixed direct payment for rice per unit area for 2014 to 970,187 won/ha for agriculture promotion areas and to 727,640 won/ha for non-promotion areas.  Therefor the mean unit price of direct payment for rice has increased by 100,000 won from 800,000 won/ha for 2013 to 900,000 won/ha for 2014. The unit price has increased by 120,060 won/ha for promotion areas and 47,538 won/ha for non-promotion areas, compared to those of fixed direct payment per hectare in 2013. Accordingly, beginning in 2014, more than 770,000 farms that receive rice direct payment are expected to receive 1 million won (average 1.11ha/farm cultivation – fixed direct payment 900,000 won/ha) in a year.

The fixed payment increase is an action taken to stabilize the incomes of farmers who are currently suffering from sluggish agricultural incomes, and will reach up to 1 million won/ha later. If the payment reaches 1 million won/ha, farms are expected to receive direct payment of 1.1 million won on average (1.11ha cultivation on average) per farm, and for this, the government is anticipated to provide the annual budget of 850 billion won. The unit price of fixed direct payment for rice has been increased from 700,000 won/ha (2012), 800,000 won/ha (2013) to 900,000 won/ha (2014).

Farmers who intend to receive fixed direct payment for rice should submit their applications to their district office for the farmland location or the National Agricultural Products Quality Management Service (branch and office) for the residence location.  Beginning 2014, MAFRA has integrated the application for registration of agricultural management bodies and application for direct payment for rice, dry field farming and undesirable conditions so that farmers can avoid applying for direct payment many times during the busy farming season. In addition, by systemizing the control of direct payment execution based on the registered information on agricultural management bodies, MAFRA has improved the efficiency of administrative work and improved the system to prevent undue receipt of direct payment.

Farmers can receive guidance on registration as agricultural management bodies and the direct payment for rice, dry field farming and undesirable conditions from the National Agricultural Products Quality Management Service branch or office for the residence location or their district office for the farmland location. For phone consultations, call 1644-8778 or 1670-8002.

 

Date submitted: March 30, 2014

Reviewed, edited and uploaded: April 1, 2014

 

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