"Land Lease Consignment Service Commission" for Farmers to Be Fully Abolished Starting Next Year

Exemption Benefits Also Apply to Existing Contract Holders

Starting next year, the "land lease consignment service commission" for farmers will be completely abolished. Even farmers who are currently maintaining contracts will receive the same exemption for commissions charged after January 1, 2026.

The Korea Rural Community Corporation announced on the 29th that, beginning January 1 of next year, it will fully abolish the consignment commission for land lease consignment services for farmers.

Overview of the Korea Rural Community Corporation headquarters.

The land lease consignment service is a program in which landowners who find it difficult to cultivate their land themselves entrust their farmland to the corporation, which then leases it long-term to professional farmers and other actual cultivators. Since 2005, the corporation has been operating this program through the Farmland Bank to promote the efficient use of farmland. To manage the program, including post-management, the corporation has charged landowners a consignment commission of 2.5% to 5% of the annual rental fee.

A representative from the Korea Rural Community Corporation stated, "To reduce the burden on farmers, the corporation had already significantly lowered the commission rate for farmer consignors from 5% to 2.5% as of January 2025. However, with the increasing costs of agricultural materials and the worsening conditions for farm management, we have decided to completely abolish the commission for farmer consignors in order to help preserve farmers' income and support management stability."

With this revision, if the consignor is a farmer, the land lease consignment commission will be fully exempted. This exemption will apply not only to new contracts signed after the effective date, but also to commissions charged to farmers maintaining existing contracts after January 1, 2026.

Kim Injoong, President of the Korea Rural Community Corporation, said, "The abolition of the land lease consignment commission for farmers is expected to greatly help improve farming conditions for farmers during these difficult times," adding, "We will continue to take the lead in implementing rational policy improvements that support farmers."

This content was produced with the assistance of AI translation services.