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Research Reports

KREI publishes reports through medium- and long-term research related to agricultural and rural policies, and through studies in various fields to promptly respond to current issues.

Valuation of Organic Farming Technologies and Demand Projections for Its New Technology

2012.12.30 45760
  • Author
    Kim, Changgil
  • Publication Date
    2012.12.30
  • Original

Background of Research
The demand for basic technologies of organic agriculture that meet farmers' needs is expected to increase. Especially, it is expected that it will be necessary to develop and find better ways of putting into actual use the application technologies of organic agriculture that combines crop cultivation and livestock farming and green manure crop cultivation technologies. In this note, this study aims to evaluate the economic values of organic farming technologies from the standpoint of farmers and find out the demand for the technologies in response to changing circumstances. Based on this analysis, this study attempts to present a road map and directions for the development of organic farming technologies.

Method of Research
The research method used in this study is a literature review of domestic and foreign development of organic farming technologies and Japan's policies on organic agriculture. Based on the literature review, Korea's related policies were analyzed and the application state of such technologies was examined through a questionnaire survey of farmers. An evaluation of organic farming technologies was made, and the priorities for the development of organic farming technologies were evaluated through an AHP analysis based on expert opinions. A roadmap for technology development of organic agriculture was also presented after holding an experts seminar and policy council meetings, and the necessary funds to conduct research for the technology development were calculated.

Research Results and Implications
By using the willingness to pay (WTP) for a specific technology of organic farming, the total value of organic farming technologies was calculated. The annual amount of WTP per farm was 704,310~854,660 won. The calculation of the total value of organic farming technologies showed that if only the organic farms are counted the total value will amount to 9.4~11.4 billion won. If the conversion of pesticide-free farms into organic farms is taken into account, the value of organic farming technologies will amount to 72.6~88.1 billion won.
The development priorities of organic farming technology are calculated by using the AHP methodology, and the results showed that the resource recycle technology of agriculture residues and livestock manure including compost, liquid manure, and organic fertilizers was found to have the highest priority of 0.219, followed by bio-pesticide application technology (0.125) and green manure crop cultivation technology (0.119).
Roadmaps are presented for each field of technology development of organic agriculture. Specifically, roadmaps are created for the construction of following systems: an environment-friendly organic agriculture recycle system for crop and livestock farming, an environment-friendly organic soil management system, an environment-friendly weed management system, an environment- friendly organic disease and pest management system, and an environment- friendly organic seed and seedling production system. In addition, directions for detailed technology development for the period from 2013 to 2022 are presented.
The research cost of developing technologies for organic agriculture for the 5-year period from 2013 to 2017 was calculated for each field of research, and the estimated costs, which amount to 50 billion won in total, are as follows: 2.5 billion won for soil and nutrient management technology, 6 billion won for weed control technology, 10 billion won for disease and pest control technology, 10 billion won for organic seed production technology, and 1.5 billion won for organic food verification technology.
Increasing the investment for technology development of organic agriculture is an important task for sound development of organic agriculture, and in order to promote sound technology development, it is necessary to identify key tasks that meet farmers' and experts' needs for new technologies and work on the tasks continuously and step by step.


Researchers: Chang-Gil Kim, Hak-Kyun Jeong and Dong-Hyun Moon
Research Period: 2012. 1 ~ 2012. 12

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2012 FANEA Annual Report
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Farmers' preparation for aging and alternative policies