Research Reports
Farm Mechanization Policy for Strengthening the Agricultural Competitiveness and the Development Direction of Farm Machinery Industry
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AuthorKang, Changyong
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Publication Date2005.07.01
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Original
This study was carried out to find the way out of difficulties in farm machinery industry, which has fallen into depression with national downward trend since the mid-1990s. By comparing with the Japan's mechanized farming policy's characteristics and changes, because Japan's condition is similar to Korean's, this study suggests the Korean government's aim of mechanized farming policy hereafter and business' direction of farm machinery industry.
The past farm mechanization policy focused on raising the mechanization rate through wide-supplying the farm machines. However, farm mechanization policy should be set up and put in practice giving priority to cutting down expenses of farm machines, developing the new farm machines, and assuring stability of agricultural work in order to give practical benefit to the farm household economy. In addition, it's the time mechanization of non-rice crop neglected up to now and enlargement of farm machines including materials of various facilities were started. The range of the research is as follows: The changes of Korean's farm mechanization policy, The changes of Japan's farm mechanization policy, The mechanization rate of Korean crop per species and The present state of Korean farm machinery industry and research of export possibility.
The separate support for farm machines only as a central government policy is disappearing while total fund system has been introduced. Still the importance of farm mechanization problem exists. Therefore, the central government's effort to develop various policy menu in order that local self-governments are able to use should be necessary. Local self-governments and farmers can choose the essential menu in each business plan of investment and loan. For example, business of rent and use farm machines, business of reusing used farm machines, selecting the proper scale and kinds of machines, and so on should be more specific.
In fact, it's difficult to enlarge the size of farm running easy enough to buy the expensive farm machines. Small-sized farm houses can't buy the farm machines single-handed and earn high income. Europe countries and Japan continue supporting the farm houses in case of buying farm machines. So the government grants should exist in the businesses of government's investment and loan. When a farmer chooses the farm machine in the businesses, government gives assistance to him. It doesn't mean distortion of market price. In Japan, in most cases of purchasing farm machines, there is 50 percent grants.
There are still many small-sized farm houses although the efforts of enlarging the scale of farm running for several decades. For increasing their incomes, it is necessary to develop cheaper small and medium-sized farm machines. The fund for development of farm machines and grants for reducing cost of using farm machines should be required together. Development of small and medium-sized farm machines also helps the enterprises as well as buyers of farm machines. Large-sized farm machines would rather be imported. In Japan, large-sized farm machines’ supply depends on imports rather than domestic development. It is because developing cost is very high and demand is too limited.
For local specialized crops, farm machines being in limited demand should be developed and supported through cooperation of central government and local self-governments. In Japan, a few but necessary farm machines' development is supported by special business(ginpro). It's high time more environmentally-friendly machines preparing for the Kyoto protocol with raising safety should be developed.
It is also required as follows:
activating the reuse of used farm machines, settling the period of supporting tax-free oil, admitting that the youths replace being in a military service as irrigation engineer, operating and mending a recall system, arranging a farm machine accident insurance(fraternal insurance) system.
Researcher: Chang-Yong Kang, Hyun-Tae Park
E-Mail Address: cykang@krei.re.kr
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