Under short-and long-term agricultural financial condition rapidly changed, the current systems for support and management need to be improved in agriculture. The goal of this study is to find out our way for utilizing functions of financial institutions, investigating agricultural finance systems in several countries-Japan, USA, France, Germany, Australia and New Zealand.
In agricultural governmental financing system, it has been most important to diversify the way of farm household's financing. The system should include the developed credit management system for risk management. Therefore the investigation of developed agricultural finance system is the key role in this study.
In chapter 2, we examine the current status of policy-based agricultural financing. Annual new supply reached by end of 2010 to 9 trillion won which has been increased since 2006. On the balance scale, the agricultural policy financing was 23 trillion won by the end of 2010. As its scale was expanded, financial resources and management institutions have been spread out in complicate. Inefficiency issue is brought eventually. We suggest evaluating the role and challenges of ‘Credit Guarantee Fund for Farmers and Fishermen’. Its purpose is to assist in the balanced development of agricultural and fishery economies by guaranteeing the loans for agricultural, forestry and fishery workers who need the business fund from financial institutions but do not have ability to provide collaterals.
In the case of Japan, it has the unique system that headed a task force incorporated into the financial system. The system includes the general public, small and medium enterprises, agriculture, forestry and fisheries. Their interest rate is legally fixed and the market interest rate is subsidized by government.
Financial supply to agriculture in USA, in principle, leaves the financial market. For new farmers and vulnerable groups, they are specially supported by the FSA. The system establishes a clear role of each institute and is operating consumer-oriented funding programs.
In chapter 5, the agricultural financing systems in France and Germany are reviewed. Both countries experience the recent decline of agricultural governmental financing. In France, only agricultural successor support program (DJA) remains. The role of Rentenbank is reviewed as a main part of policy in Germany where many parts of governmental agricultural financing are transferred to local government.
In Australia and New Zealand, the government focuses on risk management and the supporting program for low income farm households, abolishing the agricultural subsidy and emphasizing the role of private sector.
Exploring the agricultural financial system related to government in developed countries, several implications are presented. First, the system needs to be clarified for higher efficiency. Second, the policies related to agricultural finance should provide considering heterogeneous beneficiaries. The specific challenges have been proposed to improve the Korean system in the final chapter.

Researchers: Joon-kee Park, Seong-jae Park, Mee-bok Kim
Research period: 2011. 9. - 12.
E-mail address: jkpark@krei.re.kr