| A Study on Actual Conditions of Farm Asset Utilization | |||
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| Author | Lee, Douyoung | ||
| Views | 43307 | Publication Date | 2020.05.21 |
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This study analyzed the farming activities of farmers based on their asset utilization performance from 2008 to 2018. We used three criteria to analyze farm households: profitability, stability, and the growth rate of farm assets. They were categorized into highly profitable or slightly profitable farm households according to whether the ratio of agricultural income to assets (profitability) exceeded 4.5%. Also, farm households were divided into slightly stable or highly stable farms by 55.0% or more. In addition, farm households were divided into fast-growing or slow-growing farm households depending on whether the growth rate exceeded 8.0%. Thus, farm households were classified into eight categories according to the three criteria above mentioned. According to the analysis results, the proportion of highly profitable farm households decreased between 2008 and 2018, the proportion of highly stable farm households did not show much change, and the proportion of fast-growing farm households increased. However, concerning the case of growth, the value of the assets increased through the increase of nominal value, not through the expansion of the farming scale of the farm households. This is because the average farmland ownership area and the average land area of fast-growing farm households among slightly profitable farm households, which accounted for a large number of farmers, all decreased. Specifically, slightly stable farm households, evaluated by the ratio of debt to assets, remained low less than at 2.0 percent of the total between 2008 and 2018. This result shows that the farm household debt problem, which had been one of the critical problems in the past, is no longer a central problem for the entire farm household economy, but a problem for few farm households. The proportion of highly profitable farm households decreased from 31.0 percent in 2008 to 25.1 percent in 2018. Meanwhile, fast-growing farm households increased from 33.3 percent in 2009 to 38.3 percent in 2017. On the other hand, the proportion of profitable and fast-growing farms decreased, and the proportion of slightly profitable and ffast-growing farms increased. The growth of farm assets was not achieved through the expansion of farming scale, but by the rise in the nominal value of assets such as farmland and increased cash holdings. (The rest is omitted. See the attached file for details.) Researchers: Lee Douyoung, Park Joonkee, and Ha Inhye Research period: 2019. 5. ∼ 2019. 12. E-mail address: douyounglee@krei.re.kr |
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