Research Reports
A Study on Introduction of Direct Payment measures for Upland Field
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AuthorKim, Taegon
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Publication Date2005.11.01
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Original
The purposes of this study are to design direct payment for upland field through analysis the structure of Korean upland field industry under the growing agricultural trade liberalization. In addition, this study explore institutes, alternatives regarding direct payment for upland field policies direction within the following diversity ways to enhance farm household income and to stabilize farm management.
Generally, the Direct Payment is the Support Earnings policy that the government grants subsidy directly to Farming producers, an opposite concept to the Support Price policy i.e. Harvest Grain Purchase. The advanced countries i.e. USA, EU are tending upwards the direct subsidy for Farming producers against the Support Price policy, which causes some problems like overproduction.
After the Direct Payment & Management Tranfered being inducted in 1997 in Korea, the Direct Payment for Environment_intimate Farming in 1999, the Direct Payment for Rice Farming in 2001, the Direct Payment for Rice Earnings Integrity in 2002, the Mediation Rice Farming in 2003 were being operated.(maf 2005)
In this study, there are two policy alternatives to design the direct payment for upland field. First alternative is to establish the system linking several agricultural policies to compensate lower income earning upland field farm households. Second one is to have increased operational efficiency of the upland field households through the main target policies. As follows, there are various components to design the direct payment for upland field. Those are ① target area, ② method, ③ price, ④ target size of land and farm, ⑤ application system, ⑥ compliance reinforcement, ⑦ application period etc.
Finally, the results of this study suggested several significant policy implications and the direct payment for upland field policies measures in korea. In order to carry out the direct payment for upland field, it is necessary to set up the system composed of key elements, such as goals, supporting groups, supporting conditions and methods, substantial farm supports, time, and the monitoring & evaluation system. Therefore, government should consider the need to enlarge the upland field direct payments for the expansion of the total farm income and support farm income within diversity ways.
Researchers: Tae-Gon Kim, Bae-Sung Kim and Byoung-Hoon Lee
e-mail Address: taegon@krei.re.kr
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