The Current Status and Utilization of Agricultural Holdings Database in Korea

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1 18 th meeting of OECD Farm-Level Analysis Network The Current Status and Utilization of Agricultural Holdings Database in Korea OECD Headquarters Paris, France Woo-Seok Jeon Korea Agency of Education, Promotion and Information Services in Food, Agriculture, Forestry and Fisheries

2 2

3 I. Introduction - determine eligibility of farms for agricultural programs - decide appropriate size of agricultural projects - prevent duplicated subsidies - increase transparency regarding implementation of direct payment programs through integrated management 3

4 I. Introduction Survey cycle (data collection cycle) Number of subjects of survey(database) Agricultural workforce Responsible Agency for collecting data Agricultural Holdings Database report changes of information within 14 days after the changes occur All agricultural holdings(1,590 thousand) Agriculture Census Every 5 years All farms(1,089 thousand) 2,598 thousand 2,569 thousand National Agricultural Products Quality Management Service Statistics Korea Farm Household Economy Survey Every year Selected sample (2,600 farm households) Statistics Korea 4

5 I. Introduction Feb Agricultural Holdings Registration Scheme was suggested Dec for individual farms and agricultural corporations Sep ,506 farms registered 5

6 June 2008 Sep mandatory registration for holdings wishing to apply for loans or subsidies Aug

7 I. Introduction offices nationwide - operate agricultural holdings registration scheme - collect and verify information from registered agricultural holdings - analyze agricultural holdings database for improving utilization - Operate the integrated database for agricultural holdings 7

8 Tangerine farm, Jeju Island II. Current Status of Agricultural Holdings Database in Korea 8

9 II. Current Status Part 1 Part 2 Part 3 Part 4 Part 5 Part 6 General Information Agricultural production Direct Payment Livestock breeding facilities Distribution &Processing Estimated income, Assets, Debts Business Owner farming history other members job motivation full time /Part time agricultural land address ownership of agricultural land land use purpose agricultural land area cultivation area Agricultural land owner s name agricultural land address type of direct payment eligibility direct payments applying area recipient s name facilities status breeding information major products sales shares by customers processing information estimated agricultural income estimated nonagricultural income Assets Debts Source: Kang, H.(2016). An Analysis on current situation of farming successors and future challenges using agricultural holdings database Korean Agricultural Economics Association summer conference 9

10 II. Current Status number of holdings -1,589,795 individual farms -7,307 corporations (farming cooperatives: 62.0%, agricultural corporation company: 38.0%) -Total number of workforce: 2,583,217 (business owners: 1,589,795, other than business owners: 993,422) 10

11 II. Current Status Arable land area 1.49 ha per individual farm - less than 39 years old: 1.64 ha - 40~49 years old: 1.63 ha - 50~59 years old: 1.75 ha - 60~69 years old: 1.59 ha - more than 70 years old: 1.17 ha 11

12 II. Current Status cultivating commodities Type of holding Number of agricultural holdings Average number of cultivating commodities Individual farm 1,561, Age of business owner Number of agricultural holdings Average number of cultivating commodities Less than 40 years old 34, years old 153, years old 394, years old 448, Older than 70 years 530, Total 1,561,

13 II. Current Status cultivating commodities Rank commodity Share of area 1 paddy rice 53.2% 2 Beans 5.6% 3 Chili pepper 3.2% 4 Forage crop 2.9% 5 Apple 2.3% 6 Chestnut 2.1% 7 Perilla 1.8% 8 Barley 1.4% 9 Sweet Potato 1.3% 10 Persimmon 1.3% Rank commodity Share of area 11 Sesame Garlic Potato Plum Peach Citrus Ginseng Grapes Corn Onion

14 II. Current Status holdings that transferred from other industries Age of business owner Number of holdings Cultivation area per holding Share of area 39 years old or less 15, ha 5.9% , ha 21.0% , ha 35.7% , ha 26.2% 70-56, ha 11.1% Total 388, ha 100% 14

15 II. Current Status holdings that transferred from other industries by agricultural holdings that their owners transferred from other industries Rank commodity Share of area 1 paddy rice 40.5% 2 Beans 6.6% 3 Apple 3.9% 4 Chili pepper 3.8% 5 Perilla 2.8% 6 Chestnut 2.6% 7 Plum 2.3% 8 Persimmon 2.2% 9 Sweet potato 2.0% Rank commodity Share of area 10 Forage crop 1.9% 11 Peach 1.7% 12 Citrus 1.6% 13 Sweet persimmon 1.5% 14 corn 1.4% 15 potato 1.4% 16 Grapes 1.4% 17 Sesame 1.3% 18 Ornamental tree 1.2% 15

16 III. Utilization of Agricultural Holdings Database in Korea 16

17 III. Utilization of AHDB - Reduced administrative costs by KRW68.8 billion(usd 60 million) per year 17

18 - prevented direct payments being made to ineligible agricultural holdings and saved KRW 9.5 billion(usd 8.3 million) in

19 III. Utilization of AHDB -Enhance sustainability of agriculture and mitigate policy challenges (Ex. dualism in farm structure) - Increase efficiency of government financial operation - Make agricultural structure more competitive by reallocating resources between agricultural holdings through tailored approach 19

20 III. Utilization of AHDB - (specialized farm) 5 years or more farming experience(less than 65 years old), cultivation area by commodity rank in upper 30%, more than 50,000 dollars in gross farm receipts - (general farm) 5 years or more farming experience(less than 65 years old), but does not reach the level of management of specialized farm - (aging farm) 65 years old or more - (beginning farm) 5 years or less farming experience(less than 65 years old) 20

21 Farming experience Business owners age Management index mix Typology of holdings Detailed types of holdings Cultivation area rank in upper 30%+ gross farm receipts more than $50,000 Specialized farm Specialized farm Less than 65 years +gross farm receipts more than $50,000 Prospective specialized farm 5 years or more others General farm Diversified farm General farm Less than 5 years 65 years and more 75 years and more Less than 65 years 65 years and more - Aging farm Aging farm - Retiring farm - Beginning farm Beginning farm - Hobby farm Hobby farm 21

22 III. Utilization of AHDB New agricultural policy tailored to types of agricultural holdings Specialized farm Tailored program Farm modernization & scaling-up Current Average policy Prospective Specialized farm Diversified farm Tailored program Farm diversification General farm Tailored program Group farming Beginning farm Tailored program Growth Aging farm Tailored program Farm succession

23 Bell pepper farm IV. Conclusion 23

24 IV. Conclusion 24

25 IV. Conclusion (Challenge of agricultural holdings registration) government correct and improve the behaviors of some agricultural holdings which intentionally provide incorrect information (Plan for tailored policies according to farm typology) 25

26 Thank you Any questions? address: 26