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This research examines an economic efficiency of growing forage crops instead of rice and establishes effective using-system of forage crops.
Continuous exceed supply of rice with its decreasing price is pointed out as a main factor of farm income decline. To mitigate such situation, it is necessary to replace rice acreages to other alternative crops. However, considering food security and North Korea’s food shortage problem, it is important to maintain certain amounts of paddy field acreages.
With government’s subsidies, producers’ net income from field corn and rice whole crop silage are 8,820,000won and 7,790,000won per a hectare each. These figures show higher net income than from food rice production. Without government’s subsidy, meanwhile, food rice growers’ net income much higher than forage crops. Thus, introducing more productivity and cost reducing technologies with direct payment for forage crops are necessary to facilitate replacing rice acreages.
This study interviewed livestock growers, rice farmers, and TMR companies to examine the possible approaches of enlarging forage crop productions in paddy fields. The outcomes showed that maintaining stable sources of forage crops supply and demand are most important to derive income. Livestock industry also demands upgrading forage crop qualities.
The research argues that a lack of market-based system is the main obstacle of restricting the growth of domestic forage crop production. To solve market inefficiency in domestic forage production and consumption, it is necessary to introduce the “forage crop exchange center” in a several regions. The “forage crop exchange center” will provides several functions such as forage crop wholesale market place, supplying information for reducing uncertainties and setting price signals, providing funding opportunities for small businesses.


Researchers: Woo, Byung-Joon; Jung, Min-Kook, Lee, Myung-Gi, Kim, Hyun Joong
E-mail address: bjwoo@krei.re.kr

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