Research Reports
A study on long-term development of direct payment programs on less favored areas
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AuthorKim, Taegon
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Publication Date2011.12.30
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Original
Instability of agriculture management is expanded amid market opening, extreme weather change due to the global warming, and aging an agriculture and farming sectors in relatively unfavorable conditions are facing a drastic reduction in population and land abandoning due to the low position of farming income. A pilot project of Korea's direct payment programs to less favored areas was implemented from 2004 to 2005, targeting nationwide remote areas in order to promote income preservation and regional revitalization of farmers of less favored areas with regard to low living environment and agricultural productivity; since 2006, the promotion carries out direct payment programs to less favored areas as a main project.
The system has expanded to islands since its introduction and there are changes in target areas due to rigid application of farmland systems thereby require changes in the systems according to support expansion for farmers, cost sharing of government expense and regional expenses, utilization of shared costs of communities, and adjustment of target regions. In addition, the necessity to review project standards has been suggested according to changed business environments and performance evaluation, such as maintaining of the rights of settlement, regional revitalization, and farm productions increase effects with the implementation of the direct payment programs of less favored areas.
The study aims to identify the project status of the existing direct payment programs of less favored areas so as to explore measures for medium and long-term development plans and suggest improvements of systems in accordance with condition changes at home and abroad.
In the key issues for the direct payment programs on less favored areas, it is desirable to 1) simplify selected indicator, such as the existing provision of slope and arable land rate and a reduction of population, consider the effectiveness of less favored areas, statistic data by legal rate, the current designation unit. 2) For the agenda to decrease slop from 14%, the current standard to 12% or 10% requires a review in conjunction with payment unit and differentiation. 3) Whether to include dong areas of islands, it is necessary to contribute to regional revitalization through agriculture promotion if disadvantage of condition is important. 4) The issue with unauthorized changes of forest-land could be a criteria for determining whether the area has been used as an agricultural land (a field) during 2003 to 2005. 5) To raise the applicability of joint community fund, it is necessary to acknowledge consumable expenses for revitalization and common facilities of community, and discover excellent examples, such as the maintenance of agriculture production infrastructure and joint purchase and utilization of agricultural machinery and grant actual incentives. 6) Charge on the state is the principle if the implementation method related to state aid is performed nationwide. 7) Setting up the maximum payment requires creation of the maximum subsidy based with respect to the rice income direct payment program. 8) It is desirable to relieve handling of leased farmland if agriculture promotion of less favored areas is regarded importantly related to land lease issues. 9) There are two approach methods in work implications in order to boost inspection for execution conditions; simplifying project process or simplifying complicated systems. 10) Regarding the payment unit, it is necessary to increase to the same level to that of the current rice income direct payment program.
Researchers: Tae-Gon Kim, Joo-Nyung Heo and Jeong-Seung Kim
E-mail address: taegon@krei.re.kr
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