The government will implement a crop price stabilization system that compensates farmers when the average price of key agricultural products falls below a set benchmark. The specific crops eligible for compensation and the rate of payment will be determined next month.
The Ministry of Agriculture, Food and Rural Affairs announced on August 26 that the revised "Act on Distribution and Price Stabilization of Agricultural and Fishery Products" will take effect on August 27.
The price stabilization system aims to reduce management uncertainty for farmers by sharing the risk of price declines for essential agricultural products closely tied to the public's diet.
The ministry plans to convene the Agricultural Price Stabilization Committee in early September to review the eligible crops and compensation rates necessary for the system's operation. Detailed operational plans will be announced based on the committee's findings.
The committee will be chaired by the vice minister of agriculture and will consist of 15 members, with representatives from producer organizations making up at least one-third of the total.
A system to manage supply and demand from the production stage will be strengthened. Local governments will collaborate with major production area councils to establish supply and demand management plans, which the government will use to create a nationwide agricultural supply and demand plan annually.
The supply and demand plan will include forecasts for demand and supply by crop, cultivation area targets, and support measures for stable production and supply. Subsequently, local governments will develop implementation plans that reflect the national strategy, managing cultivation areas from the planting and seeding stages.
The existing Agricultural Supply and Demand Adjustment Committee will be transformed into a statutory committee that reviews major supply and demand policies. This change aims to enhance the effectiveness and acceptance of supply measures by increasing participation from producer organizations.
New legal grounds have also been established for the operation of local agricultural supply management centers to support stable production and supply. Additionally, support for losses incurred during contract farming will be strengthened, and stockpiling operators must establish management plans reflecting the sales performance and operational results of stored agricultural products.
Seo Jun-han, director of the Ministry of Agriculture, Food and Rural Affairs' Distribution and Consumption Policy Division, stated, "Through the introduction of a comprehensive supply management system and crop price stabilization system, we will strengthen the institutional framework so that farmers can farm with peace of mind and consumers can purchase agricultural products at reasonable prices."
* This article has been translated by AI.
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