Goheung-gun Supports Increased Costs of Duty-Free Mineral Fertilizers

Published 08 Apr.2022 15:55(KST)

To Alleviate Farmers' Difficulties Due to Rising Agricultural Costs

Goheung-gun Supports Increased Costs of Duty-Free Mineral Fertilizers

[Goheung=Asia Economy Honam Reporting Headquarters, Reporter Shim Jeong-woo] Goheung-gun, Jeollanam-do announced that it will support part of the increase in tax-free fuel for agricultural machinery used during the farming season (March to June) and the increase in mineral fertilizer prices to reduce the burden of farming costs on farmers facing difficulties due to rising international oil prices caused by unstable international situations and the increase in mineral fertilizer prices.

As the price of tax-free fuel for agricultural use has risen sharply, with gasoline prices in March currently 49% higher and diesel prices 52% higher than the annual average, it is expected that farmers using agricultural machinery during the farming season will suffer serious damage. Accordingly, Goheung-gun plans to minimize farmers' difficulties by supporting 50% of the oil price increase in line with Jeollanam-do policies.

Eligible recipients for tax-free fuel purchase support must be agricultural business entities registered and have been issued a tax-free fuel purchase card. They must submit an application form for the tax-free fuel purchase support project to the local agricultural cooperative to receive support.

The supported fuel types include gasoline and diesel used for four months from March to June among the tax-free fuels allocated to farmers for agricultural machinery, with a fixed support amount of 183 KRW per liter.

For mineral fertilizers, 80% of the price increase will also be supported to alleviate the burden on farmers due to the surge in raw material prices.

The expected support amount is 5.6 billion KRW (2.1 billion KRW national funds, 1.4 billion KRW local funds, 2.1 billion KRW from agricultural cooperatives). Since 2022, agricultural cooperatives have been selling mineral fertilizers at an 80% discount on the price increase first, with the government, local governments, and agricultural cooperatives cooperating to share the costs and settle accounts afterward.

A county official said, “We hope this will be an opportunity to somewhat ease the burden on farmers amid rising oil and raw material prices,” and added, “We will do our best to ensure the project is implemented in a timely manner so that there are no disruptions to this year’s farming.”