Song Mi-ryung, the Minister of Agriculture, Food and Rural Affairs, emphasized that next year's budget proposal for the agricultural sector demonstrates the government's trust and interest in agriculture, potentially marking a turning point in agricultural policy. Ahead of the Chuseok holiday, the government will invest a record 149 billion won in discounts for agricultural and livestock products, while strictly addressing farmland used for speculation. However, she reiterated that unintentional violations by elderly farmers will not be penalized.
During a press conference at the Government Sejong Center on September 10, Song stated, "Next year's budget proposal will bring significant changes to the agricultural sector."
Next Year's Agricultural Budget at 22.22 Trillion Won; Debt Clearance and Income Safety Net Expansion
The Ministry of Agriculture's budget proposal for next year is set at 22.2215 trillion won, a 10.4% increase from this year, marking the largest increase in nearly 27 years since 2000. When considering the clearance of accumulated debts in agricultural funds, the actual growth rate reaches 25.7%, according to Song.
The government plans to consolidate three funds—the Agricultural and Fisheries Fund, the FTA Fund, and the Farmland Fund—while addressing accumulated deficits and clearing debts from the Livestock Development Fund. Typically, new project budgets increase by about 2%, but next year, this will expand to around 8% of the total budget.
Song highlighted the government's allocation of 700 billion won to the Rural Community Cooperation Fund. During the Korea-China FTA negotiations, companies pledged to contribute 1 trillion won over ten years, but actual contributions fell short, leading to dissatisfaction in the agricultural sector. The government has decided to supplement this shortfall with budget funds.
"This reflects the government's commitment to keeping its promises and shows its interest in the agricultural sector," Song said. "Clearing accumulated debts, securing new projects, and addressing the shortfall in the cooperation fund demonstrate the government's trust in agriculture."
Policies aimed at stabilizing farmers' incomes will also be expanded. The budget for the Public Direct Payment System will increase to 3 trillion won, and a 'quasi-insurance crop' system will be introduced to cover gaps in existing disaster insurance. The agricultural product price stabilization system, revised under the Grain Act and Agricultural Management Act, will be reflected in next year's budget.
Song also identified the expansion of joint farming as a key change. The government plans to increase the number of joint farming sites from six this year to 30 next year, aiming to overcome the structural limitations of small-scale domestic agriculture. She stated, "This will enhance farmers' incomes and lead to significant productivity improvements. We will design and expand this initiative to open new avenues for our agriculture."
Investment in future agricultural responses will also be strengthened. Song explained that the Future Response Fund, which includes basic income for agriculture and physical AI resources, will be fully invested in the agriculture and livestock sectors, as it is funded by the agricultural special tax. She added that the remaining resources will also be earmarked for agricultural use, including interest.
149 Billion Won for Chuseok Discounts; Distribution Structure Improvement After the Holiday
A budget of 149 billion won will be allocated for discount support to stabilize prices during Chuseok. The government plans to expand the discount support, which previously focused on 13 essential items during the holiday, to include a broader range of domestic agricultural and livestock products, continuing until the end of September. The number of traditional markets participating in the agricultural product purchase refund program will increase from 200 last year to 300 this year, and agricultural product gift certificates will be sold at a 20% discount.
After October, the government will pursue improvements in the distribution structure to stabilize prices. The Ministry of Agriculture plans to implement regulatory reforms to enhance wholesale market efficiency and aims to complete 100% electronic shipping by December. The government will also promote the activation of online wholesale markets. A 'Smart Consumption App' will be launched in September, allowing consumers to find affordable agricultural and livestock products in their local areas.
Strict Response to Farmland Speculation; Flexible Approach for Elderly Farmers
Song addressed concerns regarding the comprehensive farmland survey, stating that the Ministry conducted a basic survey of 1.36 million hectares of farmland from May 18 to the end of July, with approximately 27% classified for in-depth investigation. This in-depth investigation will include hearings and is expected to conclude by December.
Targeted for in-depth investigation are suspected illegal rental farmland, unauthorized fallow land, illegal conversions, and violations of ownership restrictions. However, the ministry plans to adopt a flexible approach for farmland that has been fallow due to age or illness, as well as for inherited farmland.
Kim Ki-hwan, head of the Farmland Division at the Ministry, explained, "While strict application of farmland laws may indicate illegality, we are considering the on-site circumstances and conditions to devise measures for voluntary correction, legalization, and guidance." The ministry plans to assess issues related to fallow land, rental agreements for elderly farmers, inherited farmland, and the use of farmland for greenhouses and storage that arise during agricultural activities based on local conditions.
Song stated, "We will take firm action against speculation, but we do not intend to penalize or crack down on minor violations committed by well-meaning farmers. Our goal is to correct the gap between farmland laws and reality and to create an opportunity for proper farmland management."
The ministry is also promoting the institutionalization of farmland leasing. According to the Ministry, the number of written farmland lease contracts this year has increased by about 80% compared to the same period last year. The plan is to improve existing verbal contract practices through written contracts, whether through the Farmland Bank or between individuals, to normalize farmland transactions. The ministry will also prepare consultation and guidance materials addressing frequently asked questions from farmers.
Meanwhile, regarding the possibility of joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Song stated, "If it goes against national interests or public sentiment, we will not discuss membership as a premise but will listen to opinions thoroughly." Addressing concerns about the collapse of the agricultural production base, she added, "We need to discuss how to maintain the minimum foundation we must have while balancing openness and support."
Song expressed her commitment to focusing on stabilizing the supply and demand of agricultural and livestock products and enhancing agricultural productivity during her remaining term. She remarked, "While low agricultural prices benefit consumers, they create difficulties for farmers. Conversely, when prices rise to a satisfactory level for producers, it can burden consumers. Balancing supply and demand is the most important task for the Ministry of Agriculture."
She added, "It is crucial to strengthen price stabilization measures and disaster insurance, as well as to provide material support for production stability, enabling farmers to cultivate their crops reliably. For the future, I want to effectively apply AI in agriculture to significantly enhance productivity."
* This article has been translated by AI.
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