Background
The elements that make sustainable agriculture vary according to previous studies. However it is common in most of studies that sustainable agriculture implies that it can reproduce economically, maintain broader relationships with other sectors, including the agricultural sector, and utilize natural capital sustainably without the overburden of the environment and ecosystem. In this study, we examine the reason for degeneration of Korean agricultural sustainability. It could be due to the pressure of market opening and aggravation of terms of agricultural trade as well as the changes in social demand for the function and role of agriculture.
The problem about the sustainability of Korean agriculture leads to the question of how to make the balance between economic, social and environmental sustainability. In order to answer this question, we have to decide whether we shift our focus to one of the various functions and roles performed in the agricultural sector. Now it is a time to consider whether the function, role, and direction of Korean agriculture should be changed.

Research Objective
The objective of this study is to propose the direction and tasks needed to expand the multifunctionality in agriculture in the sense that the sustainability and multifunctionality in agriculture can make a virtuous cycle.

Sustainability and Multifunctionality in Agriculture: Theoretical Review
In this study, the key elements of multifunctionality are defined as 1) public goods which are jointly produced by agricultural activity; 2) it brings positive and negative externalities but is not sufficiently provided due to the market failure; 3) thus market intervention is required to provide it at the socially optimum level. Accordingly, agricultural activity produces a variety of positive and negative externalities, but if there is no government intervention, positive (negative) externalities are provided less (more) than social demands. In particular, this study explicitly includes negative externalities coming from agricultural activity to define multifunctionality in agriculture. Taking this redefinition, the expansion of multifunctionality in agriculture implies shifting the direction of agriculture by providing incentives in the public sector to increase (decrease) the positive (negative) externality, thereby changing the farming system in a desirable way.

Policy Direction for Multifunctionality in Agriculture
In this study, we insist that priority should be given to the environmental aspect, especially the environmental multifunctionality in agriculture. Since environment-friendly agriculture that has been done is not sufficient to expand environmental multifunctionality in agriculture, we suggest that new policy should be based on the environmental stewardship. In other words, farmers need to act as 'stewards' to fulfill their obligation to supply agri-environmental public goods on behalf of the social members. Also it is necessary for the social members to shift to the way of paying the farmers for the social benefits.

Policy Agenda for Multifunctionality in Agriculture
First, we should strengthen the practice of environmental stewardship by taking agri-environmental policy as a starting point, but we must gradually expand the range and definition of multifunctionality so as to respond to changes in conditions and raise agricultural sustainability. In addition to traditionally important agricultural functions and categories such as food security and environment-friendly agriculture, urban agriculture, food safety, animal welfare and biodiversity can be new functions. Second, if the eligibility criterion is applied, farmers that obtain their income by focusing on farming, young farmers, and small farmers who are able to participate in joint activities for expanding multifunctionality should be included in the policy object. Third, the priority of compliance set by current laws or regulations should be set as a reference level. And then the scope and level of compliance will be stepped up in consideration of agricultural conditions, legislative status, feasibility check, and farmers' acceptance of policies. Fourth, there is a need to revise the definition and scope of multifunctionality in agriculture and the responsibilities of related entities within the Constitution and the Framework Act on Agriculture, Rural Areas and the Food Industry. Fifth, it is necessary not only to adjust the proportion of government budgets to reflect changes in social demands but also to change the characteristics of budget. It is possible to review measures regularly to adjust the proportion of the budget for a particular period based on the 'Agriculture, Rural and Food Industry Development Plan'. Sixth, there is a need to change the basis of support for agriculture to request social investment instead of the way of emphasizing the need to support the value of functions that the agricultural sector carries out but not evaluated and compensated. Finally, it is necessary to reduce the top-down / public offering methods and reinforce the bottom-up / autonomous selection measures at the action stage. The feedback process also needs to be changed. Evaluation indicators should be made in such a way as to assess whether they have achieved the policy objectives and to improve them in such a way as to accumulate for a sufficient period of time. Also it is necessary to shift some of the indicators from a performance-based to a driving-force-based approach.


Researchers: Rhew Chanhee, Cho Wonjoo, and Kim Seonwoong
Research period: 2018. 1. ~ 2018. 10.
E-mail address: chrhew@krei.re.kr