Gov`t to hike direct subsidies for rice farming

The government decided on Friday to increase its fixed direct subsidies paid to rice farmers by 100,000 won (98 US dollars) from 900,000 won (878 dollars) per hectare of rice paddy to 1 million won (980 dollars), as part of measures to prepare for tariffication of rice (market opening).

Joo Ho-young, the policy committee chairman of the ruling Saenuri Party, and Lee Dong-pil, Agriculture, Food and Rural Affairs Minister, held a party-government consultative meeting at the National Assembly on the day. Soon after the meeting, Joo told reporters, “To help ease a bit farmers’ concern about tariffication of rice and to increase farming households’ income, we have agreed to increase direct subsidies for rice farming,” adding, “I have strongly urged the government to impose the highest tariff rate allowed by the World Trade Organization in order for Korea to be prepared for rice tariffication.”

If the fixed direct subsidy for rice farming increases, 770,000 households, about 60 percent of all farming households nationwide, will benefit from it. Extra expense set aside in next year’s state budget due to a hike in direct subsidies for rice farming amounts to 84.5 billion won (82.4 million dollars). Also, direct subsidies for double cropping during the winter in rice paddies is set to increase 100,000 won (98 dollars) from 400,000 won (390 dollars) per hectare on average to 500,000 won (488 dollars) next year. Accordingly, the government decided to earmark 15.1 billion won (14.7 million dollars) in next year’s budget to cover this expense.

The party and the government also agreed to lower interests on 11 different policy loans for farmers and fishermen by a range of 0.5 percent to 2 percent. As a result, interest on loans for revival of farming and fisheries businesses will decline from 3 percent to 1 percent, interest on loans for farming machinery purchase will fall from 3 percent to 2.5 percent, and interest on loans for nurturing successors of farming and fisheries industries from 3 percent to 2 percent. The party and the government also decided to provide a portion of the cost needed to replace drinking water supply systems in 33 cities and counties nationwide, whose budgetary self-sustenance rate is 30 percent or lower.