Minister Song Mi-ryeong visits the kimchi processing company Domi Sol Food located in Paju City, Gyeonggi Province, on Dec. 12 to check on the supply and storage trends of winter cabbage and is receiving an explanation from CEO Park Mi-hee. /Courtesy of Ministry of Agriculture, Food and Rural Affairs

The government will increase the basic area payment unit price by 5% to raise the baseline income level for farmers. The criteria for granting direct payments will also be relaxed from the current farm income limit of 37 million won. Additionally, the government will fully introduce agricultural income stabilization insurance that guarantees management risk from disasters and price fluctuations. To alleviate the burden on farmers resulting from the surge in exchange rates, the government will support allocated tariffs on raw materials for fertilizers and feed, which are heavily reliant on imports.

Regulations related to farmland will also be significantly relaxed. The scope of use will be expanded to allow farmland to be utilized for weekend experiential agriculture and agricultural industry, while ownership qualifications and acquisition procedures will be simplified. The government is considering tax incentives alongside marketing support to promote the spread of 'joint farming', a precursor to corporate agriculture. Over 100 billion won will be invested in the growth of new industries such as food technology and green bio.

◇ Area payment, 1ha 1 million - 2.05 million won → 1.36 million - 2.15 million won

On the 13th, the Ministry of Agriculture, Food and Rural Affairs reported the 2025 business plan at the 'Major Issue Solutions Meeting - Economic Sector 2', presided over by Acting President Choi Sang-mok, who is also the Minister of Strategy and Finance. The Ministry of Agriculture's report can be summarized as stabilizing livelihoods and the '4+4 Structural Reform and Innovation Project.'

First, the area payment unit price will be significantly increased. The unit price for area payments will rise from the current range of 1 million to 2.05 million won per hectare (ha, 1 ha is 10,000 m²) to a new range of 1.36 million to 2.15 million won. The current income limit for direct payment beneficiaries, which is set at 37 million won, will also be relaxed. This is aimed at ensuring that more farmers can receive higher direct payments.

In addition, the government will comprehensively introduce agricultural income stabilization insurance that multilaterally safeguards management risks from disasters and price fluctuations. To reduce the burden on farmers due to rising exchange rates, allocated tariffs will be supported for raw materials for fertilizers and feed that depend on imports. The government will also expand loan support for purchasing feed and fertilizers.

The government has also decided to strengthen supply and demand management at each stage of production and distribution for 10 key agricultural and livestock products that significantly impact livelihoods. The ten items selected for supply and demand management include napa cabbage, radishes, garlic, onions, apples, pears, Korean beef, pork, chicken, and eggs. The contracted cultivation volume for key vegetables will be expanded from 25% to 30%, and a model for overseas agricultural development will be established to ensure timely imports of vegetables such as napa cabbage.

The government will also implement policies to alleviate the burden of management costs on small businesses in the food and restaurant sectors. The government plans to establish a public delivery app platform in March to reduce delivery fees from 9.7% to below 2%.

◇ Restructuring rice production to focus on 'quality over quantity'… K-Food+ export goal of $14 billion

The government identified 'land reform' as the first task in the four major structural reforms for agriculture and rural areas. It will expand the scope of land use, which has only been utilized for crop production, to include weekend experiential farming and agricultural industry. The government will also relax ownership qualifications and acquisition procedures, while reforming the leasehold system, which has been allowed only under strict conditions, to promote reasonable use.

The authority to convert agricultural land outside of agricultural promotion areas will be significantly expanded to local governments. Even within promotional areas, local governments' administrative powers will be enhanced based on the establishment of basic plans.

The government plans to restructure the overproduction of rice with a focus on 'quality over quantity.' It will cooperate with local governments to actively implement measures to reduce the cultivated area by 80,000 hectares, while also pilot operating high-quality rice production complexes in one location per province. Efforts to enhance rice quality, including mandatory protein content labeling, will also be pursued.

Tax support measures will be examined to promote the spread of joint farming (contract farming, land leasing, mixed, and shareholder types) as a new alternative for scaling up and incorporating agriculture.

The four key projects for the industrialization of agricultural futures are ▲smart agriculture ▲food technology ▲large-scale research and development ▲K-Food+ export expansion.

First, the proportion of smart agriculture production will be expanded from 16% to around 20%, and the use of advanced technologies such as agricultural AI and robots will be integrated with upstream and downstream industries. To accelerate the growth of new industries like food technology and green bio, 12.12 billion won will be invested in production and research infrastructure.

Focusing on investment efficiency and integrated cooperation, a mid- to long-term roadmap for agricultural research and development investment will be established by March, and a 'private proposal fund' will be newly created with a size of 10 billion won to stimulate investments in new agricultural sectors.

The export target for K-Food Plus (K-Food+ agricultural industry-based technology) is set at $14 billion, with plans to explore new markets. Centering on ten key agricultural export strategy items, grapes and strawberries will be premium products while rice processed foods will receive support for product development. The government plans to support large-scale marketing for ramen.

Minister Song Mi-ryeong noted, 'This year, stabilizing livelihoods will be our top priority, and we will focus on resolving the difficulties of farmers and pushing for livelihood tasks for the people in the first half of the year.' She added, 'We will also carry out tasks for the future of agriculture and rural areas that we have been preparing without any setbacks.'