The agricultural sector faces a challenging environment in the second half of 2026. Key factors include a comprehensive land survey set to begin in August, the potential accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and rice prices during the harvest season.
According to the Ministry of Agriculture, Food and Rural Affairs, the government is focusing its policy efforts on stabilizing farm incomes and achieving medium- to long-term agricultural policy goals. This is part of a broader initiative to strengthen national responsibility in agricultural policy among the 123 national tasks. Given that farm incomes significantly increased last year, there is keen interest in whether this trend can continue.
A major variable in agricultural policy for the second half of the year is the "in-depth land survey" starting in August. The government plans to conduct intensive field investigations, particularly in areas requiring land transaction permits, to verify actual land cultivation and contract compliance.
The outcomes of the land survey could lead to significant adjustments in various policies. The budget execution and efficiency of agricultural subsidy programs, such as the public benefit direct payment system, may vary greatly depending on the survey results. If ineligible recipients are identified and excluded during the survey, it could reduce financial burdens on the government and impact policy direction.
Concerns have also been raised about an increase in fallow land. Traditionally, land leasing has relied on verbal agreements, but the in-depth survey may necessitate a shift to written contracts. This transition could lead some farmers to abandon their crops due to the perceived burden of written agreements, potentially leaving land fallow or causing tenant farmers to lose their cultivation rights.
In trade discussions, the potential accession to the CPTPP is expected to be a major topic for the agricultural sector in the second half of the year. The CPTPP is a multilateral free trade agreement that demands a higher level of market openness than existing free trade agreements (FTAs). The agreement's high tariff elimination rates for agricultural products and the difficulty of establishing exceptions suggest that joining the CPTPP could adversely affect rice and apple farmers.
As a result, voices of concern are growing among agricultural organizations and farmers. Norman Ho, the permanent representative of the Korean Federation of Agricultural Cooperatives, stated, "The CPTPP is not just a trade agreement; it directly impacts the foundation of domestic agriculture and food security. The government should halt its accession efforts and develop effective measures to stabilize agricultural prices and alleviate production costs."
The prices of rice during the harvest season are also expected to have significant repercussions. There are approximately 800,000 rice farming households in South Korea, accounting for more than half of all farms. Given that rice prices directly affect the income of these farmers, fluctuations in rice prices are likely to influence overall agricultural income.
Rice prices also serve as an indicator of changes in rice cultivation area. If rice prices are too high, farmers may lack the incentive to switch to other crops. Conversely, if rice prices fall too low, it could lead to a sharp decline in farm incomes.
An agricultural sector representative noted, "The second half of the year presents significant issues such as the CPTPP and harvest rice prices. The government's policy capabilities appear more crucial than ever."
According to the Ministry of Agriculture, Food and Rural Affairs, the government is focusing its policy efforts on stabilizing farm incomes and achieving medium- to long-term agricultural policy goals. This is part of a broader initiative to strengthen national responsibility in agricultural policy among the 123 national tasks. Given that farm incomes significantly increased last year, there is keen interest in whether this trend can continue.
A major variable in agricultural policy for the second half of the year is the "in-depth land survey" starting in August. The government plans to conduct intensive field investigations, particularly in areas requiring land transaction permits, to verify actual land cultivation and contract compliance.
The outcomes of the land survey could lead to significant adjustments in various policies. The budget execution and efficiency of agricultural subsidy programs, such as the public benefit direct payment system, may vary greatly depending on the survey results. If ineligible recipients are identified and excluded during the survey, it could reduce financial burdens on the government and impact policy direction.
Concerns have also been raised about an increase in fallow land. Traditionally, land leasing has relied on verbal agreements, but the in-depth survey may necessitate a shift to written contracts. This transition could lead some farmers to abandon their crops due to the perceived burden of written agreements, potentially leaving land fallow or causing tenant farmers to lose their cultivation rights.
In trade discussions, the potential accession to the CPTPP is expected to be a major topic for the agricultural sector in the second half of the year. The CPTPP is a multilateral free trade agreement that demands a higher level of market openness than existing free trade agreements (FTAs). The agreement's high tariff elimination rates for agricultural products and the difficulty of establishing exceptions suggest that joining the CPTPP could adversely affect rice and apple farmers.
As a result, voices of concern are growing among agricultural organizations and farmers. Norman Ho, the permanent representative of the Korean Federation of Agricultural Cooperatives, stated, "The CPTPP is not just a trade agreement; it directly impacts the foundation of domestic agriculture and food security. The government should halt its accession efforts and develop effective measures to stabilize agricultural prices and alleviate production costs."
The prices of rice during the harvest season are also expected to have significant repercussions. There are approximately 800,000 rice farming households in South Korea, accounting for more than half of all farms. Given that rice prices directly affect the income of these farmers, fluctuations in rice prices are likely to influence overall agricultural income.
Rice prices also serve as an indicator of changes in rice cultivation area. If rice prices are too high, farmers may lack the incentive to switch to other crops. Conversely, if rice prices fall too low, it could lead to a sharp decline in farm incomes.
An agricultural sector representative noted, "The second half of the year presents significant issues such as the CPTPP and harvest rice prices. The government's policy capabilities appear more crucial than ever."
* This article has been translated by AI.
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