Jeonnam Province Makes Full Push to Switch Paddy Soybeans to ‘Rice for Supply-Demand Adjustment’ Amid Oversupply Concerns

Applications Accepted Until May 29

Direct Payment of 5.5 Million Won Per Hectare


Additional Government Rice Stockpile Incentives

for Conversion from Paddy Soybeans or Table Rice

Jeonnam Province has begun expanding the cultivation of ‘rice for supply-demand adjustment’ in an effort to address concerns over the oversupply of paddy-grown soybeans (nonnkong) and to stabilize the supply of table rice.

On May 18, Jeonnam Province announced that applications for cultivating rice for supply-demand adjustment will be accepted at the Administrative Welfare Centers in each town, township, and neighborhood where the farmland is located, until May 29.

Rice for supply-demand adjustment is intended exclusively for processing industries, such as rice snacks, rice cakes, and traditional rice liquor, rather than for table rice. It is managed separately from table rice, thereby reducing the amount supplied to the market, and is being promoted as a measure to stabilize rice prices.

In particular, the government and Jeonnam Province plan to actively encourage the conversion of paddy soybean cultivation areas, where concerns about falling prices have arisen due to recent increases in production, to rice for supply-demand adjustment.

Promotion Material for Proper Production of Non-GMO Soybeans.
Photo by Jeonnam Province

To this end, the range of strategic crop direct payments and various incentives will be expanded. Farmers who cultivate rice for supply-demand adjustment will receive a total of 5.5 million won per hectare, including a strategic crop direct payment of 5 million won and an additional 500,000 won in paddy field alternative crop cultivation support from Jeonnam Province.

Additional allocations of government rice stockpiles will also be provided.

If farmers convert from paddy soybeans to rice for supply-demand adjustment, they will receive 186 bags per hectare as an incentive. Conversion from paddy soybeans to table rice will result in 125 bags per hectare, and switching from table rice to rice for supply-demand adjustment will provide 61 bags per hectare, with each incentive clearly defined.

Farmers wishing to participate in the program must first apply for the strategic crop direct payment, then select or designate a government-supported Rice Processing Complex (RPC) recommended by the city or county, and enter into a supply contract.

Jeonnam Province also plans to expand the production base for rice for supply-demand adjustment in the mid-to-long term. Starting in 2027, the province will foster production corporations by including ‘corporations cultivating at least 10 hectares of rice for supply-demand adjustment’ as an eligibility requirement for participation in the establishment of strategic crop (soybean) specialized production complexes and in the support project for nurturing small-scale field management entities.

Jeong Wonjin, Director of the Food and Horticulture Division at Jeonnam Province, stated, “The active participation of farmers is crucial to prevent the oversupply of paddy soybeans and to stabilize rice prices. Participating farmers will benefit from priority in cultivating rice for supply-demand adjustment each year and will be guaranteed stable sales channels. We hope for strong interest and participation from all farmers.”

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