NH Nonghyup Insurance will pay 15.4 billion won (approximately $14 million) to onion farmers who have suffered losses due to a significant drop in onion prices.
The company stated that it will start disbursing insurance payments on June 19 to onion farmers enrolled in the agricultural income insurance program, following a decline in prices for early-harvest onions.
The payments will benefit 950 onion farming households. The price of early-harvest onions has fallen by about 58% compared to the benchmark price this year, leading to a substantial decrease in farmers' income.
Agricultural income insurance is a policy designed to compensate farmers when their income falls below a certain level due to declines in crop prices or yields. It covers 20 types of crops, including onions and potatoes. The government subsidizes 50% of the insurance premiums, with additional support available from local governments.
Song Chun-soo, CEO of NH Nonghyup Insurance, stated, "We will expedite the payment process to provide practical management stability to onion farmers facing price declines. We are committed to creating an environment where farmers can focus on production with peace of mind."
* This article has been translated by AI.
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