Research Reports
A Study on the Current Operations and Improvement Plan for Agricultural Checkoff Programs in Korea
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AuthorPark, Seongjae
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Publication Date2012.12.30
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Original
Background of Research
Agricultural checkoff programs have been operating for about 20 years in Korea. They commenced with the purpose of protecting agricultural producers' interests in response to the openness of agricultural markets. Although there is an institutional framework for the checkoff programs, some limitations remain in the operations and management. This study aims to suggest specific measures to improve agricultural checkoff programs in Korea.
Method of Research
This study deals with whole agricultural checkoff programs, which are subsidized in the form of matching fund by the government, except fisheries checkoff programs. Prior to starting research, we examined the issues of checkoff programs through previous studies. Information and opinions on checkoff programs were collected through visits to checkoff organizations (including the U.S. checkoff boards and offices) and the government sponsored evaluation team which assesses the operations of horticultural checkoff programs. In addition, improvement measures were discussed in the policy forum held by KREI.
Research Results and Implications
In this study, we suggest ten improvement measures based on the analysis of checkoff programs in Korea and other countries. First, it is time to change the policy direction of checkoff programs from “initiation of checkoff programs” to “'soundness of checkoff programs”. Second, for effective policy implementation, the checkoff programs should be categorized into three groups: mandatory checkoff programs, mandatory checkoff programs in the preparatory phase, and voluntary checkoff programs. Third, for the mandatory checkoff programs, we should carefully consider the advantages and disadvantages of letting the government collect levies. Fourth, continuation or termination of the program should be decided by all members, not by the board of representatives. Fifth, the Livestock Checkoff Act, which prohibits the use of government subsidy for TV or radio advertising, should be revised. Sixth, the ceiling on operating expenses for checkoff programs needs to be flexible to be adjusted if needed. Seventh, to encourage the voluntary checkoff program to move to mandatory program, the rate of government subsidy needs to be lowered for the voluntary programs older than 10 years. Eighth, the “voluntary supply-demand adjustment”, which is one of the functions of the checkoff program stated in the Checkoff Act, should be selectively applicable to individual commodity checkoff program under its article of association, allowing for its unique features. Ninth, cooperation among small checkoff programs will be desirable and needs to be supported by the government for efficient management. Tenth, to improve the performance of the checkoff programs, data management and analyses should be conducted and supervised in a scientific manner.
Researchers: Seong-Jae Park, Joon-Kee Park, Wonho Chung, Ji-Eun Lim
Research Period: 2012. 1～2012. 12
E-mail address: seongjae@krei.re.kr
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