130,000ha Applied for First Implementation of Strategic Crop Direct Payment System... Exceeding Target
Over 40,000 Tons of Strategic Crops Can Be Added
Summer Crop Applications Extended Until May 10
This Year's Budget 121.1 Billion Won
The cultivation application area for the Strategic Crop Direct Payment System, implemented for the first time this year to alleviate rice supply instability, has reached 130,000 hectares, exceeding the government's target. If the application area is fully implemented, the government expects an additional production of 10,000 tons of glutinous rice, 16,000 tons of wheat, and 14,000 tons of soybeans, contributing to the stabilization of rice supply.
The Ministry of Agriculture, Food and Rural Affairs announced on the 26th that, as of the 20th of this month, about 90,000 farmers applied at town, township, and neighborhood offices to cultivate strategic crops on 130,000 hectares of rice paddies. This figure exceeds the initial target of 127,000 hectares.
The Strategic Crop Direct Payment System, introduced for the first time this year, provides subsidies when strategic crops are cultivated instead of rice in paddies. Strategic crops refer to crops that can improve food self-sufficiency rates, stabilize grain supply, and increase paddy utilization. These include food crops such as wheat and barley grown in winter, forage crops, and summer crops such as glutinous rice, soybeans, and forage. For cultivating food crops or forage in winter, 500,000 KRW per hectare is paid; for summer paddy soybeans and glutinous rice, 1,000,000 KRW; and for forage, 4,300,000 KRW. An additional 1,000,000 KRW is paid for double cropping with winter wheat or forage and summer paddy soybeans or glutinous rice.
This system was promoted to form a double-cropping cultivation system to enhance paddy utilization and stabilize rice supply. It is based on the "Act on the Operation of Direct Payment System for the Promotion of Public Functions of Agriculture and Rural Areas." Farmers who apply for the strategic crop direct payment will receive the payment in December after compliance inspections on a plot-by-plot basis regarding the cultivation of target crops and maintenance of paddy shape.
The Ministry of Agriculture, Food and Rural Affairs decided to provide an additional opportunity to apply for direct payments for summer crops until the 10th of next month. This decision was made in response to requests from farmers who could not apply due to administrative and procedural issues. A ministry official said, "For example, some farmers applied on time but the local government failed to input the data, and some farmers leasing reclaimed land could not apply because the lease renewal confirmation came after the application deadline." He added, "Considering these additional applications, the number of farmers and the area participating in the Strategic Crop Direct Payment System are expected to increase."
The budget allocated for the Strategic Crop Direct Payment System this year is 112.1 billion KRW. A ministry official stated, "Even if the cultivation area exceeds the target and the current budget is exceeded, there is sufficient capacity to pay through consultations with the Ministry of Economy and Finance." The government is actively encouraging strategic crop cultivation, such as deciding on the 25th to purchase 20,000 tons of domestic wheat this year, a 21% increase from the previous year (165,000 tons).
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Han Hyung-yeong, Director of Food Policy at the Ministry of Agriculture, Food and Rural Affairs, said, "The Strategic Crop Direct Payment System is expected to greatly contribute to stabilizing rice supply and improving the self-sufficiency rate of crops like wheat and soybeans, which have depended on imports." He added, "Along with the Strategic Crop Direct Payment System, we will expand support for the establishment of specialized production complexes for glutinous rice, wheat, and soybeans to further boost food self-sufficiency."
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