Implementation of Public Interest Direct Payment System from Next Month 1st... Annual Payment of 1.2 Million KRW to Small Farmers

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[Sejong=Asia Economy Reporter Kim Hyunjung] The public interest direct payment system to support farmers' income will be implemented starting next month. Small-scale farmers who meet the payment requirements, such as having farmland of 0.5ha or less, will receive an annual payment of 1.2 million KRW.

The Ministry of Agriculture, Food and Rural Affairs announced that the "Enforcement Decree of the Act on the Preservation of Agricultural Income" was approved at the Cabinet meeting on the 21st and will be enforced from May 1. In this revised enforcement decree, regarding the basic public interest direct payment system, the scope of small-scale farms eligible for direct payments, payment rates and requirements, standard area brackets and minimum rates for area-based direct payments, and payment ceiling areas were finalized.

Small-scale farmers who meet the requirements for small farm direct payments, such as having farmland of 0.5ha or less, will receive 1.2 million KRW annually regardless of the area. The scope of farms eligible for direct payments is defined as "the head of household and household members registered on the resident registration form, consisting partially or entirely of agricultural workers." To minimize household separation for the purpose of receiving direct payments, spouses, unmarried direct descendants under 19 years old, and those who have separated households for less than three years due to reasons other than marriage are considered the same household.

The standard area brackets for area-based direct payments are divided into three levels: 2ha or less, 2 to 6ha, and over 6ha, with the payment ceiling area set at 30ha (50ha for agricultural corporations). The payment amount for area-based direct payments is the sum of the payment amounts for each bracket, calculated by multiplying the payment rate by the corresponding area in each bracket.

Recipients of the basic direct payment must comply with a total of 17 items across fields such as environmental protection, ecological conservation, and community revitalization. Failure to comply will result in a 10% reduction of the total basic direct payment for each violated item, and if the same obligation is repeatedly violated in the following year, twice the previous reduction rate will be applied. The maximum reduction rate for repeatedly violated items is capped at 40%.

Additionally, the Ministry of Agriculture, Food and Rural Affairs will regulate the payment rates for area-based direct payments through official notice and will conduct an administrative notice period until May 1. As stipulated by law, the payment rates will be set at 1 million KRW or more per bracket, with the payment rate decreasing as the standard area increases.

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