Government Increases Farmland Purchase Support Unit Price by 10%... Reduces Rental Fees for Farmers Facing Management Difficulties

[Asia Economy Sejong=Reporter Kim Hyewon] To make it easier for farmers to purchase farmland, the government will increase the support unit price for farmland purchase funds by 10%. For farmers facing management crises, the scope of farmland purchase support for management recovery will be expanded, and rental fees will be reduced to the customary rental fee level of the respective region.

The Ministry of Agriculture, Food and Rural Affairs announced on the 13th that it has revised the farmland bank project implementation guidelines accordingly, effective from the 14th.

The farmland sale and purchase project involves the farmland bank purchasing farmland from those who have left farming (leaving farmers) or retired farmers and selling it to farmers or agricultural corporations seeking to expand their farming scale. Selected farmers are supported with farmland purchase funds under repayment conditions of up to 30 years (annual interest rate 1%).

Recently, there have been consistent opinions that the support unit price for purchase funds is low compared to the average farmland price level, and that the unit price needs to be adjusted to reflect reality. Accordingly, the government decided to increase the support unit price by 10% compared to last year (12,000 KRW/㎡) to support scale expansion through farmland purchase. Support amounts for young farmers (aged 20-30) acquiring farmland and for first-time farmland acquisition were also improved to 15,240 KRW per ㎡.

The management recovery support farmland purchase project is a program where the farmland bank purchases farmland from farmers temporarily facing management crises, leases it long-term to the respective farmers for up to 10 years, and guarantees the right to repurchase.

Through this guideline revision, the farmland purchase target was expanded to allow support under the condition of signing a lump-sum payment agreement when the farmland appraisal value exceeds 110% of the debt amount. The rental fee standard was changed from "within 1% of the purchase price" to "the customary rental fee level of the respective region."

The Ministry of Agriculture, Food and Rural Affairs plans to distribute promotional materials containing these details to 93 farmland bank branches nationwide and to city, county, and district offices.

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