Minister Song Mi-ryeong said on the 20th regarding the inauguration of Donald Trump's second administration that the impact on the agricultural and food industry will be limited.
On this day, Minister Song emphasized the specificity of the agricultural sector, stating at a regular meeting held at the government Sejong office that looking back at Trump's first term, there was actually no significant impact on the agricultural sector.
Minister Song noted, "Korea is in a position to export fresh agricultural products and processed foods to the United States, and we are ranked about 8th in export deficit countries with the U.S." He added, "While there is a possibility that the Trump administration may increase tariffs, food is a necessity and a cultural product that could have a significant impact on prices."
Minister Song continued, "We are preparing various scenarios in anticipation of uncertain situations," adding, "Tomorrow, I plan to review potential difficulties and countermeasures through discussions with major food corporations."
The Ministry of Agriculture, Food and Rural Affairs has set this year's export target for agricultural and food products along with upstream and downstream industries at $14 billion (20.3 trillion won). This marks an increase of $500 million compared to last year's target. However, some have pointed out that the export conditions may worsen due to the inauguration of Trump's second administration and have urged caution in setting targets.
In response, Minister Song stated, "The target for upstream and downstream industries remains at $3.5 billion, and the K-food target has been raised by $500 million to $10.5 billion." He noted, "Although these are challenging targets, I believe growth is possible," adding, "If the export of ramen increases, there will be a ripple effect with an increase in exports of kimchi and desserts, and we have developed a strategy to expand export markets to India and Latin America."
Minister Song provided a detailed explanation of the government's policy direction regarding the relaxation of farmland regulations. He stated, "We will reform the farmland law, which has been in place for over 30 years, to enhance the utilization of farmland, promote relaxation of ownership and leasing regulations, and expand local autonomy to improve farmland structure." He emphasized that while maintaining the basic principle of land preservation, we will seek efficient farmland utilization measures that match the changing times, especially highlighting a focus on supporting modern agricultural activities such as vertical farms and rural residency facilities.
Minister Song pointed out that currently, one must farm for over 8 years to lease farmland, stating that relaxed regulations about farmland ownership and use are also necessary. He explained that, currently, to convert farmland of over 30 hectares in non-promoted areas or over 3 hectares in promoted areas, the Minister must individually approve it, suggesting that within the agreed framework between central and local governments, perhaps local governments should have some autonomy in conversion rights.
Regarding the rise in pear prices, Minister Song remarked, "Last year's heatwave decreased the storage of pears, but we are inducing price stabilization through adjustments in consumption during the Lunar New Year period." He added, "We are supplying packaged pears to reduce the number of pears served during the New Year ceremony." He followed with, "Outside of the New Year demand, we are focusing on managing supply and demand by expanding the supply of alternative fruits, noting that there are no issues with the supply of other fruits like apples and sweet persimmons and that their quality is good."
Concerning policies to support young farmers, Minister Song said, "This year, the budget will be increased to $1.5 trillion won to support young farmers in focusing on their agricultural activities in a stable manner." Minister Song explained that while last year's budget for successor farmers was reduced from $800 billion won to $600 billion won this year, he suggested through an urgent issues solution meeting to secure additional budget for an increase. He affirmed, "We will ensure the sustainability of agriculture through policies such as fostering successor farmers, providing tailored farmland, and supporting housing."
Additionally, Minister Song noted regarding the repeal of the Rice Control Act revision, "The government has prepared alternatives and has begun discussions with National Assembly members," stating, "We plan to announce specific measures around the Lunar New Year period."
Minister Song emphasized regarding the reduction of rice cultivation area, saying, "This year, we have set a target of reducing 80,000 hectares, but since it is the first year, we will focus on increasing the farmers' acceptance." He explained that although there is a legal basis to impose penalties on farmers who do not participate in the reduction target, this year they will not apply coercive measures, opting instead to encourage voluntary participation.
The government plans to provide incentives to farmers reducing rice cultivation to create strategic crop cultivation complexes or support high-quality rice cultivation. Minister Song mentioned, "We will gather opinions from each city and county at the provincial level to achieve the reduction targets in various ways," adding that "we are providing additional explanations in regions where agricultural organizations have misunderstood."
Minister Song further highlighted that "It is contradictory to demand an increase in rice prices without reducing the cultivation area," stating, "For rice prices to rise steadily, high-quality rice production and area reduction should proceed simultaneously."