Reducing Burden on Farm Management Recovery... Extending Payment Period to 10 Years When Reviving Farmland

Ministry of Agriculture, Food and Rural Affairs, Korea Rural Community Corporation, and Notice of Legislative Proposal for Amendment of Enforcement Rules of Farmland Management Fund Act

The repayment period for purchasing farmland, which was sold by the Farmland Bank when farmers facing temporary management crises such as increased debt sell their farmland and then buy it back, will be extended to 10 years. Annual installment payments will also become possible.

On the 3rd, the Ministry of Agriculture, Food and Rural Affairs announced that it will publicly notify the draft amendment to the "Korea Rural Community Corporation and Farmland Management Fund Act Enforcement Rules" for 40 days from the 4th to June 13th to improve the farmland purchase project supporting business rehabilitation.

The business rehabilitation support project is a program where the Farmland Bank purchases farmland from farmers facing temporary management crises, then leases it back to the farmers for up to 10 years, guaranteeing the right to repurchase (repurchase right) the farmland afterward.

Currently, when a farmer repurchases farmland from the Farmland Bank after the maximum 10-year lease period ends, they must first pay the initial repayment amount (at least 30%) of the total repurchase price, and the remaining amount (less than 70%) must be paid in installments up to three times within three years.

However, due to recent increases in farmland prices, labor costs, and agricultural material prices, the burden of repurchasing on farmers has increased, leading some to give up repurchasing or to repurchase through secured loans on the farmland. Consequently, there have been continuous calls to extend the installment payment period for the repurchase price.

Therefore, to alleviate the economic burden on farmers who must prepare the repurchase funds within a short period, the installment payment period for the remaining amount, excluding the initial repayment amount, will be extended from within three years and three installments to within 10 years and 10 installments. A Ministry of Agriculture, Food and Rural Affairs official stated, "If payments can be made annually whenever funds become available, the annual repayment burden on farmers will be somewhat eased."

The Ministry plans to collect public opinions from stakeholders through this legislative notice and complete the amendment process by the third quarter of this year.

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