Government supports half of agricultural income stabilization insurance premiums
Increase public interest direct payment budget by KRW 300 billion to KRW 3.4 trillion
The government will expand the budget for the public interest direct payment system provided to stabilize the income of farmers, and introduce a new ‘agricultural income stabilization insurance’ that preserves the income of farmers when the prices of major agricultural products fall.
On the 27th, the Ministry of Agriculture, Food and Rural Affairs announced the ‘Plan to Establish a Korean-Style Farmer Income and Management Safety Net’ at the Democratic Party-Government Council. First, the government will reduce the gap between rice fields and fields in the basic direct payment unit price and adjust the unit price upward for the first time since the introduction of the system in 2020. Currently, the basic direct payment amount per area based on non-promotion areas is 1 million to 1.34 million won per hectare for fields and 1.62 million to 1.78 million won for rice paddies, but it will be increased to 1.36 million to 1.5 million won for fields and 1.7 million to 1.87 million won for paddy fields next year. Accordingly, next year’s public interest direct payment system budget will be operated at 3.4 trillion won, an increase of 300 billion won from this year, and the related budget is planned to be expanded to 5 trillion won in the future.
Agricultural income stabilization insurance, which compensates for reduced agricultural income due to natural disasters or market price declines, will also be fully introduced as part of the main project starting next year. When agricultural income stabilization insurance is introduced, if the income in question falls below a certain level compared to the average year’s income, up to 85% of the decrease in average year’s income is paid as insurance. Half of the insurance premiums are supported by the government. The number of items subject to insurance will also be expanded from 9 this year to 15 next year, and then gradually increased to 30.
Considering the recent increase in the risk of natural disasters due to abnormal climate, the unit price for disaster recovery support will also be increased by an average of 23%, and agricultural machinery and equipment that were previously excluded from support will also be included in the support.
Sejong = Reporter So Seol-hee [email protected]
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2024-09-28 21:01:38