This research was carried out to draw out improvement plan of direct payment systems for environment-friendly agriculture with the objects of major product items based on systematic analysis of production cost and income differences per types of certifications of environmental friendly agricultural products and to prepare introduction plans of new environmental cross compliance (ECC) programs.
Organization of the report are composed of background and necessity of the research in the introduction of chapter 1 and purpose of research, reviews of preliminary researches and scope of research were suggested. Chapter 2 explains theoretical backgrounds of direct payment system for environment-friendly agriculture and ECC related theories. Chapter 3 diagnoses current status of direct payment system for environment-friendly agriculture and evaluates performance of the policy programs. Chapter 4 analyzes amount of unit price in direct payment system and survey results of production cost of environmental friendly agricultural products. Chapter 5 describes direct payment system for environment-friendly agriculture and operation examples of ECC in major countries. Chapter 6 suggests directions for improving direct payment system of environment-friendly agriculture and introducing environmental cross compliance programs. Finally, chapter 7 delivers summary and conclusion.
For investigation of production cost of environmental friendly agricultural products, with the objects of farmhouses recommended by National Agricultural Products Quality Management Service, production cost investigation was carried out with the objects of total 233 farmhouses such as 77 rice farmhouses, 64 vegetable farmhouses (potato 21, lettuce 20, tomato 23), 44 fruit farmhouses (apple 21, grape 23), 48 forest product farmhouses (chestnut 22, shiitake mushroom 26) and etc in consideration of year of certification, distribution per regions and etc.
Production cost per 10a of environmental friendly rice cultivation agricultural farm was investigated in about 1.4~1.5 times compared to conventional farming of 629,000 won as in no-pesticide 861,000 won and organic 967,000 won. On the other hand, in case of income per 10a, it was investigated in the level of no-pesticide 81.8% and organic 87.2% based on conventional farming of 467,000 won. It was found out that difference of production cost of organic cultivation was higher and income difference was smaller than no-pesticide.
Reviewing differences of incomes per year between environmental friendly rice farming practices and conventional farming, in case income of usual farmhouses was 467,000 won per 10a, the first year of environmental friendly farming practices was 262,000 won, second year was 299,000 won, third year was 345,000 won and fourth year was 448,000 won and income was reduced as number of years was elapsed and income of fifth year was 512,000 won and it showed 45,000 won higher difference which was 9.6% higher than conventional farming.
As income of environmental friendly vegetable cultivation agricultural farm per 10a, in case of potato, it was investigated in no-pesticide 92.4% and organic 91.3% based on conventional farming of 952,000 won, in case of lettuce, it was no-pesticide 92.8% and organic 90.0% based on conventional farming of 4,036,000 won, in case of tomato, it was investigated in the level of no-pesticide 98.1% and organic 97.6% based on conventional farming of 5,628,000 won and it was analyzed that income was reduced as it moved from usual to no-pesticide and organic cultivation.
As per income per 10a of environmental friendly fruit cultivation agricultural farmhouses, in case of apple, it was no-pesticide 96.4% and organic 95.9% based on conventional farming of 3,098,000 won, in case of grape, it was no-pesticide 93.4% and organic 88.8% based on conventional farming of 3,350,000 won and it was analyzed that production cost was higher and income was lower as it moved from usual to no-pesticide and organic cultivation.
As per income of environmental friendly forest product farmhouses, in case of chestnut, it was investigated in no-pesticide 91.3% and organic 75.3% based on conventional farming of 469,000 won and in case of shiitake mushroom, it was investigated in no-pesticide 90.0% based on conventional farming of 951,000 won and it was analyzed that income was reduced as it moved from conventional to no-pesticide and organic cultivation.
Looking at calculation method of direct payment of organic farms of main countries, in case of Czech Republic, total income per year and additional costs were considered and in case of Germany, it was based on changes of total incomes and elements because of differences of incomes and costs between usual farmhouses and organic farmhouses. Looking at direct payment system of organic farming, in countries such as Germany, Scotland, Austria and etc, conversion direct payment and maintenance direct payment were supported together and in local governments of Germany, Scotland, France, differential conversion direct payment system was operated.
It is necessary to improve environmental agricultural direct payment system positively by adjusting higher support unit price of direct payment and by providing incentives in case of practicing environmental friendly agriculture per region/district unit. It is desirable to adjust support unit price of environmental friendly agricultural direct payment system higher to the level of 1,200,00~1,300,000 won per ha in case of rice agriculture of no-pesticide cultivation and 1,000,000~1,100,000 won per ha in case of organic cultivation and to convert in a direction to pay differently according to number of years.
In case of practicing environmental friendly farming methods above no-pesticide cultivation per district unit, it is necessary to review plans to support more additionally about 10% of support unit price of environmental friendly direct payment. For managing production history records of environmental friendly agricultural products, database such as management results of farmhouses receiving benefits and etc must be established and inspection system of uses of supplies of farmhouses must be established too.
As the result of reviewing application examples of ECC of main countries such as England, Swiss, USA and etc, ECC policy was introduced from land management to other various fields such as protection of wetland, guidelines of wild birds and habitats, welfare of animals and etc and they tried to reduce transaction costs such as document inspection, random inspection and etc and strict penalties were levied on farmhouses which violated these.
Introduction of ECC policy programs of various menu methods is necessary for sound maintenance and preservation of agricultural ecology. ECC program menu can consider the current method (M1) which pays according to level of practices, support for representative farmhouses (M2) participating in preparation of online agricultural log and monitoring, supports for cultivation agricultural farmhouses of winter time soil erosion prevention farm products (M3) and support for water quality purification farm products cultivation agricultural farmhouses (M4). For introducing various ECC programs of menu methods, it must be prepared in advance in rational and systematic manner and support unit price must be also calculated properly.
For successful implementation of ECC, powerful mechanism must be established for investigating status of observation and strict penalties must be levied in case of violation of conditions. Document inspection and random inspection are more effective than regular site inspection for reducing transaction costs and in case of site inspection, it is desirable to inspect several items simultaneously. In addition, it is necessary to levy strict penalties in case of violation through monitoring and in early stage of the introduction, a plan is desirable to apply very light direct payment reduction ratio of 3~5% and to adjust reduction ratio as it is gradually settled down.
Direct payment system of environmental friendly agriculture takes an important position as a main policy program for expanding practicing farmhouses of environmental friendly agriculture. In case of main European countries, as an incentive measure for nurturing organic agriculture practicing farmhouses, direct payment system is utilized broadly and it is the reality that size of support money is expanding every year. In addition, it is a trend that environmental reciprocal observation programs, which are implemented in connection with environmental friendly measures of agricultural environmental resources management and alleviation of greenhouse gas and agricultural policy, are expanding broadly.
Direct payment system for environment-friendly agriculture with organic and no-pesticide farming practices shall be continuously improved and supplemented by reflecting changes of conditions in order for environmental friendly agriculture to be developed soundly as a growth engine of the future agriculture. In addition, in order to comply to national development strategy of green growth, policy integration, in which environmental reciprocal observation program is introduced to agricultural policy for expanding appropriate agricultural environmental resources management and greenhouse gas reduction and absorption capability, must be established positively.