◇ (Goal) Strengthen public benefit functions of farming and agricultural villages to meet needs of citizens, consumers and farmers, and manage so that direct payments are paid to actual cultivating farmers
① Strengthen public benefit enhancing activities to preserve the environment and ecosystem, and to restore the community
② Strengthen management of the direct payment application and management system and upgrading of farmland policy
◇ (Expected Effect) Spread public benefit functions of agriculture and strengthen income safety net of small- and medium-sized farms
* Positive Assessments of Urban Citizens to Public Benefit Functions of Farming & Agricultural Villages: (’19) 64.2% → (’20) 68.2%
A. Related Status
Since the 'Act on Direct Payment for Public Benefit' was passed in the National Assembly (December 27, 2019), 6 out of 9 existing direct payment systems have been integrated into the 'direct payment system to enhance public benefit of agriculture and agricultural village'
* Separately operating management transfer direct payment aimed at improving the structure, FTA closure support and direct payment to preserve FTA damage
Need to provide detailed measures in terms of unit price and compliance by hearing opinions of broad entities such as farmers, farming groups, experts, consumer groups and local governments
(Increase Inclusiveness) Design payment unit price in a way that it strengthens balanced production between rice paddy and dry field crops and income stabilization of small- and medium-sized farms
(Improve Public Benefit) As a creator of public benefit in terms of environment, ecosystem, community and food safety, expand the roles of farmers and improve public benefits of agriculture and agricultural village as a living sphere, workplace and a shelter
In preparation to the possibility of increased illegal demand of direct payment of non-farmers, improve the direct payment management method and repair farmland system
B. Implementation Plan
Provide Detailed Measures to Direct Payment for Public Benefit and Provide Education and Promotion
(Policy Implementation) Hear opinions of farmers and experts to confirm measures (February 2020), and amend enforcement ordinance and enforcement rule (April 2020) * Form a bond of sympathy through 50 discussions and briefings such as local briefing with related agency participated by farmers, farmers' groups and local governments, and operating consultative group and TF to discuss on direct payment system - Afterward, through application and submission (April - May) and obligatory inspection (July - October), pay direct payment at the year-end
□ Summary of Detailed Implementation Measures
○ Payment Structure with Strengthened Inclusiveness
For small farms of 0.5 ha or less, pay KRW 1.2 million a year regardless of the land area (direct payment for small farms) - Pay only to farmers who meet certain requirements such as 3 years or more living in farming village and engaged in farming, and below certain level of non-farming income
For other farms, pay higher unit prices for farms with smaller land area - To balance supply and demand of rice and to preserve excellent farmland, differentiate into 3 grades - 'rice paddies and dry fields within agricultural promotion area', 'rice paddies outside the agricultural promotion area', and 'dry fields outside the agricultural promotion area'
Determine unit price so that the payment does not decrease from the past payment level and the estimated increase in unit price
○ Strengthen Public Benefit Enhancing Activity
For people to feel the public benefit roles of agriculture and agricultural villages in their life, strengthen compliance to environmental management, farming village management, agricultural activity, food safety and preservation of ecosystem
For new introduction of community activity, apply alleviated obligations and reduced amount by considering field conditions, and strengthen activity level by year
ㅇ (Field Promotion) Operate a preparatory group for implementing the direct payment system for public benefit (MAFRA) and preparatory municipal and provincial TF (from January 2020) to ensure soft-landing of the system - Utilize various farmers' education, online and offline promotional materials and local discussion groups, educate farmers and promote on changes in policies (first half of 2020) * Promote key messages through videos, advertisements and professional education programs in each stage of direct payment system
Strengthening Management in Each Stage of Application, Inspection and Follow-up Management of Direct Payment System
(Application) Combine basic business information necessary for application into the business registration system (March 2020) to prevent the possibility of illegal payment - Compare the past history of policy fund supports and if the recipient of other subsidies in the same farmland is different, check in the application stage
(Inspection) Efficient inspection by securing field inspection manpower* and using drones** * Operating Status of Inspectors: (’18) 754 persons → (’19) 702 → (’20) 956 ** Drone Usage: (’18) 34 units → (’19) 99 → (’20) 131
(Follow-up Management) Introduce honorary inspectors and special judicial police management system to strengthen inspection, strengthen punishment to illegal payment* and increase reward for reporting illegal payment** * (Present) Additional collection of double the amount received + restriction of registration within 5 years → (Improved) Additional collection of less than five times the amount received + restriction of registration within 8 years ** (Present) KRW 500,000/case, up to KRW 2 million/year → (Improved) At least KRW 500,000 - 30% of the collected amount, abolished the annual limit
(Management Agency) Designated the National Agricultural Products Quality Management Service as the "management agency" for executing, inspecting and providing follow-up management of direct payment
Strengthen Lease Management by Upgrading Farmland Policy, etc.
Strengthen management of new acquisition and farmland owned by farmers outside the region by expanding farmland use survey* * (’19) Farmland within 3 years of acquisition + Transfer farmland owned by farmers outside the region → (’20, draft) Farmland within 5 years of acquisition + Farmland owned by farmers outside the region + Farmland targeted for prior inspection
Inspect farmland with possibility of illegal lease and promote consignment of farmland bank * During consignment, approve the existing lease relationship, abolish land area restriction, and promote direct information between urban citizen and tenant
Expand farmland acquisition and lease to strengthen public management of farmland * Percentage of Farmland Bank in Farmland Lease Market (based on area, %) : (’18) 9.5 → (’19) 9.6 → (’20) 10.2