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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.

Establishment of Sustainable Agriculture System in Korea (Year 2 of 2)

2014.12.30 55601
  • Author
    Kim, Changgil
  • Publication Date
    2014.12.30
  • Original

Background of Research
Research on sustainable agriculture has mainly analyzed the production aspect, focusing on the technical and economic aspects of environmentally- friendly and low-input agriculture. However, in future research on sustainable agriculture must move beyond the production aspect to examine other aspects. This ‘holistic’ approach to research on low input agriculture will not only examine the production aspect, but will also the environmental, economic and social aspects. Such an approach is necessary if a sustainable agriculture system is to be established which effectively manages agriculture environment resources, such as soil and water.

Methods of Research
This study presents the results of an actual first year study which analyzed sustainable agriculture. In the study, Data Envelopment Analysis (DEA) has been applied, using as its basis the rice production cost and soil-related variables data, so that a review could be conducted of the compatibility of economic feasibility and environment effect.
In addition, an econometric model has been used for a simulation analysis on the contribution to agricultural added value of investment with regards to sustainable agriculture. Moreover, further analysis of soil nourishment management has been carried out with an analysis of frequency and the Ordered Probit Model on the basis of expert surveys.
Furthermore, an analysis of frequency and Heckman's two-stage method have been applied to determine the level of farmers’ understanding and their intentions with regards to sustainable agriculture.
Finally, an Analytic Hierarchy Process (AHP) has been employed so as to establish a hierarchy of priorities for sustainable agriculture policy programs.

Research Results and Implications
An analysis of environment effect reveals that the available phosphoric acid level is 1.3~2.1 times the optimal amount in rice paddies, upland fields and orchards. Further examination has revealed that the excess nutrient is polluting ground water and surface water.
Analytical results for economic feasibility show that factors of production have been invested heavily in the rice crop. Under these conditions, sustainable agriculture, including low-input agriculture, appears to be a possible alternative that will permit economic feasibility and environment effects to be improved simultaneously.
Analysis results for sociality reveal that social factors include the value of producer, association and interior network. Social conditions are comprised of leadership, consumers' awareness, education and conflict solutions. In addition, analysis on how much the investments contribute to improving agricultural value added has revealed that the direct payment program is the most effective instrument. Experts confirm that economic feasibility can be improved by scientific and well reasoned nutrient management on the basis of soil test.
Farmers pointed to 'economic factors' (40.5%) as being the largest obstacle to switching to the practice of sustainable agriculture. They also indicate 'uncertainty with regards to sustainable agriculture technology' (55.8%) as a failure factor for practicing sustainable agriculture. Even so, farmers who think that environmental and regional issues are the biggest problems have expanded their practice of sustainable agriculture.
An analysis which sought to establish the priorities for sustainable agriculture policy programs has shown that extending R&D in agricultural technology, revitalizing soil test and fertilizer recommendations as well as introducing an emission trading system are very important policy measures.
The key subjects to establish the sustainable agriculture system are classified into the following four aspects. And each aspect calls for different requirements.
Firstly, from an economic point of view, the research indicates that agricultural policy needs to be integrated with environmental policy and that the function of market making based on the value chain needs to be revitalized.
Secondly, from an environmental point of view, there is a need for an optimal resource management system to be established in the agricultural sector. In addition, sustainable agriculture practice will need to be extended and environmentally-friendly and sustainable intensive technology will need to be further developed.
Thirdly, from a social point of view, green agriculture management needs to be fostered, technology and education needs to be extended, and social conflict needs to be mediated.
Lastly, from a governance point of view, it will be necessary to strengthen good governance, to share suitable roles, to build a cooperation system and to utilize community supported agriculture.

Researchers: Kim Chang-gil, Jeong Hak-kyun, and Moon Dong-hyun
Research Period: 2014. 1. ~ 2014. 12.
E-mail: changgil@krei.re.kr

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