Next Year's Ministry of Agriculture, Food and Rural Affairs Budget 17.3574 Trillion Won... Increased by 78.9 Billion Won

[Asia Economy Sejong=Reporter Lee Jun-hyung] The Ministry of Agriculture, Food and Rural Affairs' budget for next year has been finalized at 17.3574 trillion won, a 2.8% increase from this year's 16.8767 trillion won.

The Ministry announced on the 24th that the budget for next year was confirmed at 17.3574 trillion won after review by the National Assembly. This is 78.9 billion won more than the government's proposed budget of 17.2785 trillion won. Compared to this year's budget of 16.8767 trillion won, it represents a 2.8% increase. A ministry official stated, "The increase in the agricultural budget appears to reflect the comprehensive need to strengthen food security due to supply chain instability, stabilize farmers' management, and enhance food support for vulnerable groups, despite the government's tightening fiscal policy."

The sector with the largest budget increase is food security-related projects. First, the strategic crop direct payment budget, newly introduced next year to expand wheat and soybean production and alleviate rice supply and demand issues, was increased by 40.1 billion won from the government's proposal of 72 billion won. This is the result of expanding double cropping areas and extending target crops to include summer forage to further reduce rice cultivation areas. The budget to support the expansion of soybean production and distribution infrastructure was also increased by 2 billion won. Additionally, 200 million won was added to the budget for overseas market research on grains to proactively respond to instability in the international grain market supply and demand.

The budget for smart agriculture, including smart farms, also increased. Specifically, an additional 3 billion won was allocated to expand one rental-type smart farm within the Innovation Valley to encourage existing farmers to enter smart agriculture. The budget for promoting Korean-style smart farms through smart farm package export activation was increased by 100 million won. Accordingly, the Ministry plans to establish one additional Korean-style smart farm greenhouse overseas next year to expand export bases.

A new budget of 1.25 billion won was allocated for the establishment of an industrial and food-use hemp industry cluster to lay the foundation for the hemp (industrial cannabis) industry. Hemp is industrial cannabis excluded from narcotics as it contains hallucinogenic substances below a certain standard. Additionally, 500 million won was added for the basic plan and feasibility study for the creation of a Saemangeum production, processing, and logistics hub complex.

The budget to stabilize agricultural and food prices also increased. First, 7.4 billion won was added to support the institutional establishment of the differentiated pricing system for raw milk by usage, which will be implemented from next month. The Ministry expects this project to help stabilize prices by mitigating factors causing raw milk price increases. An additional 3.4 billion won was allocated for emergency restoration and safety measures following the fire damage at the Daegu agricultural and marine products wholesale market. Furthermore, a new budget of 200 million won was allocated for a feasibility study to establish a storage base, including a low-temperature warehouse for agricultural product reserves, in Gangwon Province, which currently lacks a government stockpile base.

The budget to support farm management stability increased by 5.6 billion won. The agricultural social overhead capital (SOC) budget for agricultural disaster preparedness, such as rural water development and drainage improvement, increased by 5.5 billion won. The public seasonal worker project budget was increased by 100 million won. This project involves the employment of foreign seasonal workers introduced by local governments through memorandums of understanding (MOUs), who are then hired by the Nonghyup and provided to farms as agricultural work teams.

The budget for food support for vulnerable groups also increased. The agricultural and food voucher pilot research project budget was increased by 5.9 billion won. As a result, the target for food support projects for vulnerable groups is expected to reach 48,000 households, 20,000 more than the government's original proposal of 28,000 households. Additionally, a new budget of 4.2 billion won was allocated for the construction of a next-generation integrated information system for agricultural and forestry projects to promote digital transformation in agricultural administration.

The Ministry of Agriculture, Food and Rural Affairs stated, "We will promptly proceed with the necessary procedures to carry out projects reflecting the budget increases made during the National Assembly review process," and added, "We plan to prepare to ensure there are no disruptions in next year's budget execution."

Next Year's Budget Bill Passed in the National Assembly Plenary Session
(Seoul=Yonhap News) Reporter Lee Jeong-hoon = In the early morning of the 24th, a revised version of the 2023 budget bill was approved and passed in the National Assembly plenary session. 2022.12.24
uwg806@yna.co.kr
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