| A Study on Farm-household Income Support Policy by Local Governments: Current Situation and Policy Implication | |||
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| Author | Park, Joonkee | ||
| Views | 87757 | Publication Date | 2020.02.18 |
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Research Background Many rural areas are faced with population aging and declining. Also, agricultural profitability has been falling. To solve the problem, local governments have been implementing projects for farms such as the project for income preservation for monetary support and the other to reduce operating costs. Besides, local governments have discussed on the benefits for farmers. Local governments should provide public services in various forms to solve the problems faced by local areas. However, it is necessary to examine the feasibility of projects to provide support for income and business management implemented by local governments in terms of their original objectives and financial management principles. This study analyzes the budget planning for the agricultural sector and identifies problems by analyzing the management of financial support projects. Based on the analysis results, this study aims to present policy tasks in terms of restructuring roles among project proponents, rearranging funding and budget management methods, and reinforcing the roles of local governments. Research Methodology We first analyzed the farm economy data to find out the level of government subsidies in farm income. Next, to analyze the income support status of local governments, we analyzed the status of income and operation cost support projects using budget data for the municipalities in three metropolitan councils of Chungnam, Jeonnam, and Gyeongnam. The main contents of the analysis were the details of the farm income support project and the operation cost support project, the degree of farm support and the share of the agricultural and rural budget, and the issues and improvement tasks of the current support project were derived. A quantitative analysis of the impact of additional support for national projects was carried out on the additional support for fixed direct payment for farm and disaster insurance premiums support for farms. We conducted a survey targeting farmers and civil servants for agricultural issues and the preservation of income support projects. Also, we flew to the United States to examine crop disaster insurance and the roles of the federal and state governments. Findings We organized the issues about support projects and suggested ways to improve the preservation of income and operation support projects. First, we need to redefine the roles of the central and local governments. Second, in order to cope with income problems of local farmers, it is necessary to select and concentrate on linking the support targets and methods rather than equity. Third, it is necessary to clarify the purpose, method, and target of individual income support projects. Fourth, it is necessary to make a consultation and adjustment system to improve the budget execution efficiency of farm income support projects. Fifth, in order for local governments to play a leading role in supporting farm income and activating local farming, it is necessary to establish a foundation. As a policy task for local governments to improve their farm income support programs, first, the central government finds projects on a national and equity level. Therefore, local governments should reestablish their roles and conduct their projects to support local farmers. Second, local governments need to change their farm income support projects. For example, the local governments should reclassify the problem such as the aging population, insufficient funds, lack of farming, and the issue of new entry. Also, they need to reorganize the support system to respond to income and management expenses effectively. Third, it is necessary to reorganize the way to enhance the effectiveness of the operation support project implemented by local government financial resources. The support method should shift to the preservation of agricultural resources and the environment, such as policies to reduce fertilizers and pesticides. Fourth, it is necessary to establish a system for consultation and coordination among the stakeholders of farm income support projects. When promoting income support projects between the central and local governments, it is necessary to consider establishing and operating a farm support project coordination committee temoorarily, which has the authority to consult and coordinate. Lastly, in order to improve the income and operation support projects of local governments, it is necessary to establish the information system. A local agricultural information management system should be in place so that local governments will be able to understand farm problems accurately and carry out projects following local characteristics. Besides, in preparation for the decentralization of power, the government should focus on changes in farm conditions, local issues, and mid- to long-term issues. Researchers: Park Joonkee, Lee Douyoung, Park Jiyeon, Im Junhyeok Research period: 2019. 1. ~ 2019. 10. E-mail address: jkpark@krei.re.kr |
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