The Korea Rural Economic Institute (KREI) hosted the 2015 Agricultural Outlook Conference in the Yeongnam Area attended by about 700 people including local farmers and public officials on Feb. 9 at The-K Hotel, Gyeongju. The event is the second of the conferences on “Finding Supply and Demand Stabilization Plans in the Field” held in five regions across the country, following the first in Jeju-do on Feb. 3. People from all walks of life had a heated debate, presenting the outlook for agriculture and rural areas this year and agricultural policy alternatives to respond to fast-changing domestic and foreign environments.

Holding the conference, KREI published a report which forecast a 1.0% increase in agricultural income over last year due to a 4.4% decrease in input prices.

According to the report, the burden of operating costs is expected to be reduced because of a drop in international commodity prices in 2015. A decrease in oil prices will lead to a large price decline in farm materials such as light and heat expenses in farming and plastic, and fertilizer prices will also fall after a time lapse. Thus, 2015 input prices are predicted to shrink 4.4% from the previous year. In addition, owing to a slowing economic recovery, a rise in demand for agricultural products is expected to be limited.

The report forecasts that this year’s farm income per household will increase 2.2% from last year to 36.68 million won. Although the agricultural production value will drop, agricultural income will rise 1.0% year on year due to lessening managing costs. With the business recovery, nonfarm income is expected to go up by 3.3%, and transfer income including subsidies will grow by 1.6%.

The institute will host the Honam conference on Feb. 23 at the Hanium Culture and Sports Center, Hwasun, Jeollanam-do; the central area’s on the 25th at La Vie D’or, Hwaseong, Gyeonggi-do; and the Chungcheong region’s on the 27th at Sunmoon University, Asan, Chungcheongnam-do.