[2021 Budget] Ministry of Agriculture, Food and Rural Affairs, Full Effort for Digitalization of Agribusiness and Climate Change Preparedness... Next Year's Expenditure 16.1 Trillion Won

Increase of 358.1 billion KRW (2.3%) Compared to This Year
Tasks Including Stabilization of the Public Direct Payment System and Farm Income
Calls for Increased Support Such as Expanded Loan Programs and Disaster Insurance Payments for Farmers

[Sejong=Asia Economy Reporter Kim Hyunjung] The Ministry of Agriculture, Food and Rural Affairs announced on the 1st that the total expenditure scale of the budget and fund plan for next year is 16.1324 trillion won, an increase of 358.1 billion won (2.3%) compared to this year. To respond to structural changes such as the COVID-19 pandemic and climate change, the ministry plans to promote the digitalization of the agricultural industry and the renovation of aging facilities, while also launching a discount coupon project to revitalize agricultural product and dining-out consumption.

First, the government will support non-face-to-face and digitalization projects in the agricultural sector. A new budget of 3.2 billion won has been allocated to establish an online wholesale trading system for agricultural and livestock products and to support next-generation technology research to enhance smart agriculture competitiveness. The budget for rental-type smart farms to foster young farmers will be expanded from 17.4 billion won to 47.7 billion won, and 4.7 billion won has been allocated to support domestic companies’ smart farm overseas expansion packages.

The government will expand the purchase of prime farmland to enable young and start-up farmers to engage in stable farming, and increase the number of rural manpower brokerage centers for job efficiency in agriculture from the current 70 to 130. Local government support projects such as experiencing rural life in advance will also be expanded to a scale of 21.7 billion won.

In addition, to respond to climate change, 606.5 billion won will be spent on renovating aging water management facilities and installing disaster prevention measuring instruments and emergency sluice gates. Large-scale projects also include disaster prevention systems (314.5 billion won) to prepare for heavy rains and support for agricultural disaster recovery costs (128.5 billion won).

[Image source=Yonhap News]

Along with this, budgets have been allocated to strengthen the public interest role of agriculture, including inspections for the public payment system policy, expansion of regional food consumption systems, and support for agricultural products for vulnerable groups.

Maintenance plans suitable for local conditions will be supported by local governments (5 locations, new 2.5 billion won), and rural social welfare will be improved by increasing the scale of farmland pensions for elderly farmers to 180.9 billion won. Measures for stabilizing agricultural management, such as agricultural product price stabilization and financial support plans, will also be prepared.

To help farmers whose sales channels have been blocked due to the COVID-19 pandemic, direct efforts will be made to support manpower and consumption activation. Projects include housing support for foreign female workers in agriculture (100 million won), training and operation of female farmer coordinators (300 million won), and the issuance of discount coupons and campaigns for agricultural products (81 billion won) and dining out (67 billion won). A budget of 45 billion won will be used to introduce contract farming for major grains such as wheat and soybeans to strengthen the food self-sufficiency base.

Some voices call for additional measures such as strengthening contributions to the Agricultural, Forestry and Fisheries Credit Guarantee Fund for loan projects targeting farmers to more actively respond to difficulties caused by COVID-19, expanding disaster insurance payments to respond to disasters such as floods, and increasing budgets for livestock quarantine response. The fruit supply project for elementary school care classrooms, currently under preliminary feasibility study, is also considered a project that should be considered to promote domestic agricultural product consumption and improve children's dietary culture.

Meanwhile, the 2021 budget and fund plan will be submitted to the National Assembly on the 3rd and will be finalized after deliberation and resolution by the National Assembly.

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