Research Reports
A Study on the Detailed Implementation of a Public-purpose Direct Payment Program
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AuthorKim, Taegon
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Publication Date2010.10.01
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Original
The direct payment system is emerging as a major means of agricultural policy. Because, various effects may result from the policy, such as the spread of eco-friendly agriculture, promotion of agriculture in the regions of inferior agricultural conditions, shaping of rural landscape, etc. along with supporting the income of farm houses or stable management. The direct payment system is a taxpayer's payment policy based on the government finance rather than a consumer's payment policy like price support policy.
The direct payment system is being spread over major developed countries like the U.S., EU, Japan, etc. As the direct payment system is a policy stipulated by the WTO agricultural agreement that prohibits any type of manipulation of the agricultural trading and market, while playing various roles like triggering the expansion of agricultural products and other diverse functions.
The shrinking income of farmhouses caused by the transition of financial aid such as tariff reduction and financial stress will be major concerns of agricultural policy. The reformation of the direct payment system is necessary in the direction of opening the market and protecting agriculture at the same time.
The direct payment system has to be properly reorganized according to the changes in agricultural conditions and the tasks of agricultural policies. The goal of this research is to propose an implementation program of a public-purpose direct payment system under assumption that Korea's direct payment system would be reorganized as a ‘direct payment system for management stability (income-stability system per each farmhouse)' that controls management risks and a ‘public-purpose direct payment system' intended to spread the diverse functions of agriculture in the future.
The detailed implementation plan of the public-purpose direct payment system has been taken concrete shape with respect to the direction of reformation, the public-purpose direct payment implementation program, etc. by means of the study of literature and actual conditions, the survey of domestic and overseas cases, the review of reformation plan of the direct payment system of the Ministry of Agriculture, Forestry and fisheries, etc. In order to achieve the purpose of this study, the current conditions of Korea's direct payment system and its problems have been derived from conducting the study of literature and the survey on actual circumstances of corresponding local countries. On the basis of this, the key concerns of the current direct payment system and the major issues of discussion for the reformation of the direct payment system has been withdrawn.
In the contents of this report, the chapter 2 mainly deals with the direction of reorganizing Korea's direct payment system. In the chapter 3, the cases of the foreign countries are investigated. The chapter 4 explains the implementation program of the public-purpose direct payment system, suggesting the report of current conditions and alternatives like the way of integration, target farmhouses, target farmland, payment method, the unit payment price, and terms and conditions.
Researchers: Kim, Tae-Gon, Chae, Gwang-Seok and Heo, Joo-Nyung
Research period: 2010. 4. - 2010. 10.
E-mail address: taegon@krei.re.kr
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