Farm Income of Business Owners in Their 50s Reaches 70.42 Million Won... Supply Stability Measures and Public Interest Direct Payment Scheme Shine

First Time Surpassing 70 Million KRW, 1.6 Times the Average
Last Year's Farm Household Income Also a Record High at 45.03 Million KRW

[Sejong=Asia Economy Reporter Kim Hyunjung] Due to the government's supply and demand measures and the introduction of the Public Interest Direct Payment System, last year's farm household income reached an all-time high. In particular, the income of farm households managed by owners in their 50s exceeded 70 million KRW for the first time, reaching 1.6 times the average farm household income.

According to the Ministry of Agriculture, Food and Rural Affairs on the 10th, last year's farm household income was recorded at 45.03 million KRW, up 9.3% from the previous year. This was largely due to a sharp increase of 27.0% and 15.2% in transfer income and agricultural income, respectively, compared to the previous year. Non-agricultural income and non-recurring income decreased by 4.1% and 1.1%, respectively.

◆ Accelerated Price Stability through Proactive Supply and Demand Measures = The proportion of agricultural income in total farm household income last year was 26.2%, an increase of 15.2% compared to the previous year. The increase in the share of agricultural income in total income indicates that agriculture is establishing itself as a means of livelihood. In particular, government supply and demand measures stabilized prices of agricultural products such as rice, and strengthened management stability support such as disaster insurance payments, which helped increase agricultural income.

Rice prices fell to 31,691 KRW per 20kg in 2017 due to continuous bumper harvests and decreased consumption. Considering that rice farming households account for more than half (54.1%) of all farm households, the government implemented various measures such as expanding consumption channels, exporting processed products, and overseas aid. In particular, the rice production adjustment system was introduced, reducing rice cultivation area by 77,000 hectares (about 410,000 tons production reduction effect) from 2018 to last year. As a result, the farm-gate price of rice during last year's harvest season recovered to 54,121 KRW per 20kg.

The Ministry of Agriculture, Food and Rural Affairs is also accelerating policies to support income preservation for vegetable farmers such as garlic and onions, as well as fruit and flower farmers. Since last year, it has introduced an actual measurement survey system to improve the accuracy of agricultural monitoring and expanded actual measurement surveys to closely examine cultivation area, crop conditions, and production volume information. In particular, through the 'Vegetable Price Stabilization System,' which compensates contract farmers up to 80% of the average price and imposes supply and demand obligations such as pre-area adjustment, it defended against the decline in garlic prices. Flower farmers, one of the hardest-hit sectors by the COVID-19 pandemic, also regained smiles through government support for market expansion and public purchases. The transaction volume and wholesale price of cut flowers sharply declined by 34% and 10.5%, respectively, in early last year compared to the previous year, but turned to an upward trend in July of the same year.

◆ Farm Household 'Young Blood' in Their 50s, Average Income Surpasses 70 Million KRW = It is also notable that the income of farm households managed by owners in their 50s, known as the 'young blood' in rural areas, exceeded 70 million KRW for the first time. Last year, the average income of farm households managed by owners aged 50-59 was 70.42 million KRW, 1.6 times the overall average. Compared to 2016, it increased by 11.5% in four years.

In addition, the income of farm households managed by owners in their 70s, which account for the largest proportion of farm households, was recorded at 33.9 million KRW. This was a sharp increase of 21.1% compared to the previous year due to the expansion of income safety nets for small-scale elderly farmers.

By other age groups, those under 50 earned 55.27 million KRW, and those in their 60s (60-69 years old) earned 51.16 million KRW. Compared to last year, these figures increased by 0.1% and 7.9%, respectively.

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