[2022 Budget] Ministry of Agriculture, Food and Rural Affairs Allocates 16.7 Trillion KRW for Carbon Neutrality and Disaster Response... Establishes Farmland Bank Management Agency

Ministry of Agriculture, Food and Rural Affairs to Increase Next Year's Budget by 2.4% Compared to This Year
Strengthening Policies on Carbon Neutrality, Smart Agriculture, and Food Security

[Sejong=Asia Economy Reporter Kim Hyunjung] The Ministry of Agriculture, Food and Rural Affairs announced on the 1st that it has prepared next year’s budget at around 16.6767 trillion won, a 2.4% increase compared to this year. The ministry’s budget has expanded from 14.4996 trillion won in 2018, 14.6596 trillion won in 2019, 15.7743 trillion won in 2020, to about 16.2856 trillion won this year.

Next year’s budget focuses on ▲ rural regeneration ▲ food security and agricultural management stability ▲ carbon neutrality ▲ expansion of smart agriculture and data utilization ▲ enhancing inclusiveness of agriculture and rural areas through welfare reinforcement for vulnerable groups, and the spread of companion animal culture.

In particular, the budget for ‘rural regeneration’ has been expanded to transform rural areas into pleasant and desirable living spaces, so that the increased interest in rural areas due to the preference for non-face-to-face and low-density societies can lead to population inflow and settlement expansion in rural regions.

The number of local governments establishing rural spatial plans will be expanded from the current 5 to 40 to accelerate spatial maintenance, and budgets necessary for local governments that have established plans to practically maintain spaces such as relocating livestock barns and factories (14 billion won per location over 4 years) will be supported (3.1 billion won → 32.2 billion won). Additionally, efforts will be made to revitalize the local economy by encouraging settlement of various personnel such as returnees to farming and rural areas, young farmers, and social economy actors. An integrated information platform for returnees to farming and rural areas will be established (7.6 billion won), and the target number for young farmers’ agricultural settlement support funds will be expanded to 2,000 people (32.2 billion won, from 1,800 people → 37.5 billion won, 2,000 people).

In response to the food security threats highlighted by the spread of COVID-19 and fluctuations in supply and demand of agricultural and livestock products due to natural disasters and livestock diseases, support for agricultural management stability will also be provided. To expand the domestic production base of wheat and soybeans, which have low self-sufficiency rates, investments will be made in wheat seed support (1,330 tons → 1,900 tons), stockpile expansion (10,000 tons → 14,000 tons), joint sorting costs for legumes (1.1 billion won, 20,000 tons), and promotion of domestic wheat and soybean consumption (1.8 billion won), increasing the budget from 183.1 billion won to 191 billion won.

Furthermore, the budget for agricultural disaster insurance (475.5 billion won → 685.7 billion won), disaster countermeasure expenses (128.5 billion won → 228.5 billion won), and drainage improvement projects (324.5 billion won, 51 new districts → 375.1 billion won, 60 new districts) will be significantly expanded to enhance pre- and post-disaster response capabilities. Individual tracking of sows, which have a high incidence rate of African Swine Fever (ASF), will be implemented (6.6 billion won) to improve quarantine efficiency through accurate epidemiological investigations and rapid responses in case of disease outbreaks. Additionally, a ‘Farmland Bank Management Agency’ will be established (4.7 billion won) to continuously manage farmland ownership, usage status, and transaction conditions, and to strengthen a local government-centered farmland management system.

Regarding the ‘2050 Carbon Neutrality’ policy, an optimal breeding model that minimizes carbon emissions from cattle breeding will be developed (2.6 billion won), and RE100, which produces renewable energy equivalent to total electricity consumption, will be supported at the rural village level (1.8 billion won, 4 locations) to establish an energy self-sufficiency model in rural areas. Support will also be provided for installing facilities that allow joint use of renewable energy such as geothermal and waste heat (2.9 billion won, 2 locations), and private energy companies will participate in existing livestock manure joint resource composting and liquid fertilizer facilities to additionally install biogas production facilities (6 locations, 8.2 billion won).

To respond to climate change and aging, and to complement the labor-intensive agricultural structure, smart agriculture will be expanded and the data economy activated. Considering the high initial entry cost of smart farms, 6 additional rental-type smart farms that existing farmers and young farmers can use will be installed (41 billion won), expanding the total to 12 locations. To enhance the competitiveness of agricultural product distribution organizations, existing production area distribution facilities will be transformed into smart production area distribution facilities (11.2 billion won, 17 locations) by introducing automation facilities and management systems, and the system for online wholesale trading of agricultural products will be completed (600 million won → 1.2 billion won) to ensure smooth operation.

In addition, inclusiveness in agriculture and rural areas will be expanded through welfare enhancement for agricultural workers who are relatively vulnerable in terms of health or living conditions, and support will be provided for fostering a mature companion animal culture for a society where people and animals coexist. First, health checkups for agricultural work-related diseases, which are vulnerable among female farmers, will be newly supported (2 billion won), and the eligibility age for farmland pensions will be lowered (65 → 60) for farmers lacking retirement preparation. To improve welfare for foreign workers in agriculture, pilot dormitory construction (4.2 billion won, 10 locations) and new health insurance premium support (about 20,000 households, 9 billion won) will be undertaken.

Support will also be provided for neutering surgery costs for outdoor-raised dogs to reduce the occurrence of abandoned animals (1.5 billion won), and for environmental improvements of private animal protection facilities to ensure that rescued lost and abandoned animals are protected in better environments (1.8 billion won).

The budget and fund plan for next year, including these details, will be submitted to the National Assembly on the 3rd and will be finalized after review and approval by the Assembly.

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