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Research Reports

KREI publishes reports through medium- and long-term research related to agricultural and rural policies, and through studies in various fields to promptly respond to current issues.

Revitalization of Farmland Banking Enterprises and Management Measures for Abandoned Farmland

2007.12.01 58314
  • Author
    Kim, Soosuk
  • Publication Date
    2007.12.01
  • Original

This study aims to investigate the problems of the current farmland banking system and come up with directions and practical ways to revitalize the farmland banking system. Furthermore, we examine the current management situation of abandoned or idle farmland and propose ways to improve management and use of this farmland.
Among the farmland banking enterprises, both 'farmland leasing enterprise' and 'farmland purchasing enterprise for management revival support' have received a good response from participants and gained high performance. The survey results from participants of the 'farmland leasing enterprise' revealed that tenants have shown higher satisfaction while landlords have had lower satisfaction and expectation, indicating that most landlords reluctantly participate in the enterprise. The 'farmland purchasing enterprise for management revival support' has received a good response; however, many participants have pointed out some problems regarding the contents of the enterprise.
A describable direction for improving the current farmland banking enterprises is to develop the farmland banking system as a new integrated farmland control organization. The roles of the new organization include control of farmland transactions and tenancy, promotion of increasing farmland in size, improvement of land use and conservation, and management of information related with farmland. It is better to develop the current farmland banking system as an integrated control organization rather than to set up a new organization for controlling the land. In the 'farmland purchasing enterprise for management revival support,' the scheme of purchase and reselling at current market price should be replaced with that of purchase and reselling at standard prices.
Concerning the construction of an integrated land control organization, it is necessary to maintain the farmland system and expand its operations as the following: introduction of a registration system for farmland transactions and tenancy, a supporting system for direct land transactions, and a management system for abandoned farmland; and construction of a complete farmland information system.
The institutional improvement for developing the farmland banking system and managing abandoned farmland can be accomplished through the following: Firstly, 'projects for increasing farmland in size' are necessary to be included in the farmland banking enterprises. Secondly, the enterprise for purchase and reservation of farmland should be introduced as a farmland banking enterprise. Thirdly, it is necessary to expand 'the project for arranging marginal farmland' by purchasing abandoned farmland through an enterprise for purchase and reservation of farmland.
The two methods for using and managing abandoned or idle farmland are as follows: One is to take preventive measures against abandoned or idle farmland. The specific measures are to expand the direct payment scheme to include dry fields. The other is to make the best use of abandoned or idle farmlands by classifying them into agricultural use and non-agricultural use. The agricultural use of abandoned or idle farmland includes improvement of farming conditions in less-favored areas and cultivation encouragement of alternative energy crops.
Researchers: Soo-Suk Kim, Eui-Sik Hwang, Joo-Nyung Heo
Research period: 2007. 5. - 2007. 12.
E-mail address: soosuk@krei.re.kr, eshwang@krei.re.kr, knuhjn@krei.re.kr

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