[2024 Budget] 3 Trillion KRW Era for Rural Direct Payments... 1.5 Trillion KRW Support for Young Farmers

The government will invest 3.1 trillion won in agricultural direct payment budgets to stabilize farm income. Agricultural direct payments are amounts the government provides directly to producers as income support. The direct payment unit price for small-scale farmers will increase from 1.2 million won this year to 1.3 million won next year.

According to the '2024 Budget Plan' announced by the Ministry of Economy and Finance on the 29th, the government increased the budget for supporting agricultural and fishing villages from 4 trillion won this year to 4.8 trillion won next year. Agricultural direct payments rose from the existing 2.8 trillion won by 300 billion won, ushering in the era of 3 trillion won. The Ministry of Economy and Finance stated, "The agricultural direct payment budget will be gradually expanded to 5 trillion won by 2027."

The small-scale farmer direct payment, paid to small farmers, was raised by 100,000 won for the first time in four years. A budget of 707 billion won will be invested for this purpose. The income guarantee insurance, previously limited to seven items, will add apples, pears, and tangerines, which have high price volatility, starting next year. The income guarantee insurance budget increased from 2.5 billion won to 8.1 billion won.

Support for young farmers will increase from 1 trillion won to 1.5 trillion won in stages. First, support for young farmers will expand from the existing 1,875 hectares to 3,500 hectares. A 'retirement direct payment for elderly farmers' system will be introduced, allowing elderly farmers who transfer prime farmland to the younger generation to receive 4.8 to 6 million won per hectare annually. The budget for the 'young farmer support fund,' which pays up to 1.1 million won per month, increased from 55.1 billion won to 94.3 billion won.

Efforts will also be made to improve living conditions in rural areas. A new budget of 5 billion won has been allocated for regional specialized projects utilizing vacant houses, and 20 private-led themed rural tourism programs will be launched. Direct payments to farms cultivating strategic crops will increase from 112.1 billion won this year to 186.5 billion won next year.

[Image source=Yonhap News]

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