The government has significantly reduced the budget for major projects such as supporting the end of dog meat consumption, public interest direct payment, and drought preparation water development in the Ministry of Agriculture, Food and Rural Affairs budget for the next year. This is interpreted as an expenditure restructuring focused on items with decreased demand and concerns about waste.
According to the relevant ministries and the Ministry of Agriculture, Food and Rural Affairs on the 3rd, the budget for supporting the closure and transition of dog farming households has been cut by about 70%, from 48.5 billion won this year to 15.3 billion won next year. A Ministry of Agriculture, Food and Rural Affairs official noted, "This year, 70% of all farming households have already closed, drastically reducing the number of support targets," adding, "Support will continue focusing on the remaining 30% of farmers after next year."
The project to end dog meat consumption has garnered attention since the early days of the Yoon Suk-yeol administration, when Kim Keon-hee showed interest. The government has decided to completely ban the breeding, slaughtering, and distribution of dogs for consumption purposes by February 2027, and has prepared a budget to support farm closures and transitions.
As a result of implementing the project, there were many early closures, adding to this year's budget of 54.4 billion won, along with 83.4 billion won in contingency funds. Consequently, the demand for closures next year is expected to be low. A government official stated, "This is not a reduction of the project, but a natural decrease due to the reduction in the number of targets."
The largest cut in the Ministry of Agriculture, Food and Rural Affairs budget for next year on a single item basis is the budget for the basic public interest direct payment. It has been reduced from 26.334 trillion won this year to 24.534 trillion won next year, a decrease of 1.8 billion won. The government provides basic direct payments to farmers with an annual comprehensive income of less than 37 million won based on area and small-scale farming.
A Ministry of Agriculture, Food and Rural Affairs official explained, "The public interest direct payment is determined by the designated farmland and farmers, and when eligibility is lost, the farmer automatically falls out of the program," adding, "Cases where farmers do not meet the requirements due to land conversion or increases in non-agricultural income have increased, leading to a reduction in payment size."
While the government reduced the budget for the basic direct payment, it increased the budget for optional direct payments conditioned on eco-friendly and low-carbon agriculture or the cultivation of strategic crops such as wheat and corn from 320.1 billion won this year to 516.4 billion won next year.
The budget for drought preparation water development has decreased from 10.6 billion won this year to 10.1 billion won next year. Despite ongoing drought damage in areas like the east coast of Gangwon Province, the budget has been slightly reduced. A Ministry of Agriculture, Food and Rural Affairs official stated, "The budget was fully allocated in the first half of the year and has already been executed, and additional measures are being covered by earmarked tax (special) from the Ministry of the Interior and Safety and reserves from local governments," adding, "This is not a reduction of the project, but a result of prioritizing adjustments."
The budget for international agricultural cooperation (Official Development Assistance) has been cut from 202.4 billion won this year to 72.7 billion won next year, a decrease of 129.6 billion won. The main reason is the reduction in rice aid. In the past, when there was a surplus of domestic rice, 150,000 tons were sent abroad as aid, but from next year, this will be reduced to 50,000 tons. A Ministry of Agriculture, Food and Rural Affairs official stated, "Due to the domestic supply-demand situation not being abundant, we adjusted the aid amount to increase reserves."
The budget for imported grain has also decreased. The rice procurement cost for tariff allocation (TRQ) has been cut from 592.2 billion won this year to 548.2 billion won next year, a decrease of 44 billion won. This is due to a recent drop in international rice prices, which has lowered the unit import cost.
The government explained that this expenditure restructuring is not simply a reduction but an adjustment considering "feasibility and efficiency." Conversely, it plans to expand lifestyle-related support programs, such as providing 40,000 won per month for meals to industrial park workers and small business employees under the "Reliable Meal for Workers," and the "1,000 Won Breakfast" for university students, aiming to accelerate agricultural policy reform.
Professor Kim Han-ho of the Department of Agricultural Resource Economics at Seoul National University stated, "Expanding the optional direct payment instead of the basic direct payment aligns with efforts to diversify the rice-centered agricultural structure and increase the cultivation of strategic crops," adding, "The reductions in funding for ODA and dog meat consumption are understandable from a fiscal efficiency standpoint, but complementary measures are needed to minimize field backlash during the agricultural policy transition process."