Expanded salary system draws praise from farmers

Posted on : 2017-12-26 13:58 KST Modified on : 2019-10-19 20:29 KST
A number of counties in South Jeolla Province advance pay to farmers during the off-season
Lee Ki-man
Lee Ki-man

Lee Ki-man, a 68-year-old farmer who owns a 16,500-square meter apple farm in Jangseong County, South Jeolla Province, received pay to his bank account last April. It was his first payment in the 43 years since he began farming at the age of 25.

“It’s because the county expanded the targets of its farmer salary system to include apple and strawberry farms,” he explained. Between April and October, Lee received monthly payments of 2 million won (US$1,840) from the county branch of the National Agricultural Cooperative Federation (Nonghyup). The 14 million won(US$12,800) was repaid in full with the pay he received after finishing the apple harvest last month. Interest was paid by the county.

“Apple farming carries a lot of personnel and other expenses before the harvest. Typically, I’ve borrowed at interest rates of 5–7% to cover the costs,” he said. “There’s less of a debt burden now that I can use the monthly payment to cover pre-harvest expenses.”

The expansion of the pay system to fruit as well as rice farmers has met with a positive response from the beneficiaries. According to accounts from South Jeolla and elsewhere on Dec. 18, the local governments implementing the farmer pay system include the cities of Suncheon, Yeosu, and Naju and the countries of Gokseong, Damyang, Jangheung, Jangseong, Haenam, and Jindo. Yeongam County also plans to implement the system as of 2018 after enacting an ordinance in October.

The farmer pay system was first introduced by Suncheon in 2013. Its chief targets are rice farmers. The local Nonghyup pays a monthly salary during the offseason, amount to agricultural earnings divided by a specified period of time. The pay typically ranges between 300,000 and 2,000,000 won (US$280–1,840). After enacting related ordinances, local governments cover interest payments for the amounts paid to farmers. Farmers repay the amounts received in advance with money from their post-harvest sales.

Jangseong County has become the first unit in South Jeolla to include fruit farms in the farmer pay system. For the first time this year, the county instituted a system to cover interest for 151 rice, apple, and strawberry farms, at a cost of 1.33 billion won (US$1.2 million).

The response from farmers has been very positive. A survey of 151 recipients of farmer pay conducted by Jangseong County in September showed 77% reporting themselves as “satisfied.” Many have called for the system’s introduction for other crops. As other potential targets for the system, respondents named persimmons (44.7%), grapes (23.7%), pears (15.7%), and berries (15.8%). The county is also currently considering an expansion of the system to other fruit farms.

Jangseong governor Yu Do-seok said the county would be “developing different policies to encourage farmers’ desire to practice farming.”

By Jung Dae-ha, Gwangju correspondent

Please direct questions or comments to [english@hani.co.kr]

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