Rural Economy Institute "Impact of Public Payment System Introduction... Farm Income This Year 45 Million Won"

[Asia Economy Reporter Minyoung Kim] Agricultural production value this year is expected to reach 50.438 trillion won, similar to the previous year. With the introduction of the Public Interest Direct Payment System, farm household income is anticipated to reach 45 million won.

The Korea Rural Economic Institute (KREI) forecasted on the 21st through the 'Agricultural Outlook 2020' that the agricultural production value in 2020 will be about 50.438 trillion won, similar to the previous year. The production value of crop farming is expected to decrease by 0.4% from the previous year to 30.572 trillion won. Although the production value of grains is expected to increase by 1.3% due to increased rice and potato production, the production value of vegetables is projected to decrease by 3.7% compared to the previous year due to reduced garlic and onion production. The production value of livestock and poultry farming in 2020 is expected to increase by 0.7% from the previous year to 19.866 trillion won. Increases are expected in Hanwoo beef (0.7%), pigs (0.2%), eggs (3.8%), and ducks (5.3%), while chicken production is analyzed to decrease by 2.1%.

Last year, the agricultural production value is estimated to have increased by 0.8% from the previous year to 50.428 trillion won. Due to the rise in rice prices, the production value of crop farming increased by 1.4% compared to the previous year, while the production value of livestock and poultry farming is expected to have decreased by 0.3% due to falling pig and duck prices.

Farm household income this year is also expected to approach 45 million won due to increased transfer income. With the introduction of the Public Interest Direct Payment System, transfer income is expected to reach 11.44 million won, a 15.2% increase from last year. Agricultural income is estimated to increase by 1.4% from the previous year to 12.95 million won due to increased total agricultural revenue and the effect of rice price stabilization payments for 2018 and 2019 crops. Non-agricultural income and non-regular income are expected to increase by 2.9% and 1.9%, respectively, compared to the previous year.

The terms of agricultural trade this year are expected to worsen compared to last year. This is because agricultural input prices are expected to rise by 1.2% from last year due to increases in international oil prices, wages, and rental fees. KREI forecasts that input costs (1.5%), wages (2.8%), and rental fees (1.1%) will rise, while livestock costs (1.8%) are expected to decline. Due to rising prices of vegetables and fruits, farm sales prices are also projected to increase by 0.8% compared to the previous year.

Following last year, the number of people employed in agriculture, forestry, and fisheries is expected to continue increasing this year. The number of workers in agriculture, forestry, and fisheries this year is projected to rise by 1% from the previous year to 1.41 million, influenced by factors such as return to farming and rural migration.

As in the previous year, the area of farmland and cultivated land is expected to continue decreasing this year. Both farmland and cultivated land areas are expected to decrease by 0.6% from the previous year, reaching 1.58 million hectares and 1.64 million hectares, respectively.

The number of livestock is expected to increase compared to the previous year. Due to increases in broilers and ducks, the number of livestock is projected to rise by 1.0% from the previous year to 196 million heads.

This content was produced with the assistance of AI translation services.