For conclusion of the UR agreement in 1990, the Korean government introduced the Farmland Scaling Improvement Project for supporting specialized farm households and improving farmland scales to strengthen competitive power for the rice industry in Korea, which is the mother project for launching the Farmland Bank from the broader viewpoint. However, some people have opinions that the policy for supporting rice farming should be finalized in 2013 which is focused on expanding the scale of farm households dedicated to growing rice, because of achieving 80 to 90% of the target of supporting farmers dedicated to growing rice, excessive rice production and supply.
The conditions of supporting farmers dedicated to growing rice are significantly changing due to reduced income of the farmers dedicated to growing rice with dropping rice price and progressing discussion on rice tariff. Furthermore, it is predicted that rice price would drop in a mid- and long-term which is led by further opening the rice market and oversupply and production of rice. The pressing issue thus needed is to objectively review the mid- and long-term environmental changes in expanding the farm household scale project and the farmland bank project and to establish the direction of reorganizing the project.
The purpose of this study is to present the direction of mid- and long-term development of the farmland bank to cope with environmental changes for the farmland bank project. Details of the project to present the direction of mid- and long-term development are as follows: (1) review reorganization of the scheme for the farmland bank project to cope with changes in conditions for agriculture, e.g., rice tariff in the market, oversupply of rice, etc., (2) develop a project to carry out the farmland bank project to cope with changes in the rural conditions, e.g., rapidly aging workforce in rural districts, further scarcity of future agricultural workers (3) establish plans for performance analysis and inspection for improving the farmland scale and for efficiently carrying out the project, (4) identify and analyze details of policies related to the farmland bank project in major countries advanced in agriculture, and develop implications in terms of policy and plans for introducing them in Korea.
The key conclusion is described below.
Firstly, the project for improving the farmland scale should be reorganized in consideration for the changes in condition. There were shown many unwanted results and inefficiency because the existing farmland bank project (including the improvement of farmland scale) was promoted on a nationally standardized basis. It is necessary to promote the project in consideration for local characteristics to avoid the previous unwanted result. For example, it is necessary to differentiate the project of improving farmland scale and farmland bank project depending on the level of farmland price, considering difference in local farmland price and the like to enhance the performance of entire project. In association with this, it is necessary to apply different standards to the method of assessing the projects by local organizations (province headquarter, branches) under the Korea Rural Community Corporation (KRCC, Farmland Bank) to reflect characteristics of each region.
Secondly, it is necessary to discard the existing project promotion system monopolized by KRCC for developing a plan for using farmland, promoting the project of facilitating use of farmland, to achieve smooth and efficient promotion of farmland integration and use and to establish an appropriate role sharing system by the Korean Government, the municipalities, KRCC, etc. It is necessary to enhance non-systematic project promotion through municipalities’s participation, and to systematize farmland related information for each region to prepare a scientific basis for promoting the project.
Thirdly, there is a problem of ill-defined target in the other farmland bank project to result in staffs in charge of the project being unable to understand promotion of the project, as compared to the existing project of improving farmland scale. It is necessary to set a definite target and direction in terms of policy before developing a scheme for efficient farmland bank project including improvement of the farmland scale and for improving the system. For example, exemplary methods include establishing policies and project goals, e.g., provide fund support of low interest in order to keep 50% of the ratio of farmland owned by farm households for stabilized management of farm households dedicated to farming in relation to the farmland purchase support project; the Government manages farmland of approximately 5 to 10% in relation to the farmland purchase project for reserve; and manage the farmland lease of 50% in relation to the farmland lease and trust project.
Fourthly, it is necessary to perform model projects, e.g., the farmland integration and efficiency project, the farm lease project, etc., for smooth promotion of key new projects, including the farmland purchase support project, the farmland integration and efficiency project, the farm lease project, etc. In particular, develop the necessity of continuous promotion of the farmland integration and efficiency project and difficulties in the process of promoting the project by carrying out a model project per region in each province headquarter.

Researchers: Hongsang Kim, Soosuk Kim, Euisik Hwang, Gwangseok Chae
Research period: 2010. 8. - 2011. 4.
E-mail address: hskim@krei.re.kr