Budget for Land Bank Set at 1.8 Tln Won to Prioritize Nurturing Young Farmers

President Lee Byung-ho of Korea Rural Community Corp. (KRC). (Photos: KRC)

The cabinet on Aug. 29 approved the 2024 budget for the Land Bank Project Korea Rural Community Corp. (KRC).

The 2024 budget, the biggest ever in terms of spending, was set at 1,809.5 billion won, an increase of 345.6 billion won from 2023’s 1,463.5 billion won.

The budget will be used for major projects to nurture young farmers and restructure the agricultural sector.

An account for purchasing land parcels from retired farmers and using it as public rentals for young farmers has been set at 1.7 trillion won, a 40 percent jump of 305 billion won.

A combined 2,500 ha of land parcels will be purchased to offer preferential support to young farmers.

The support area for land purchase and long-term rentals targeting young farmers will be expanded to 1,630 ha. About 123 billion won, an increase of 44.6 billion won, has been appropriated.

In particular, the support unit price for young farmers will rise from 25,400 won/sq. meter to 26,700 won/sq. meter to ease their burden.

The support amount for general farmers has been expanded to 200 ha.

The support area for long-term rentals will rise to 1,250 ha, while a project to restructure the agricultural structure in a format of offering subsidies in return for land transfers will be ramped up.

Retired farmers who hand over their land for leasing and land transaction projects to KRC will be subsidized. An account for subsidizing retired farmers in return for their land transfer amounting to 12.6 billion won has been created.

Each retired farmer aged more than 65 will receive 500,000 won per month in direct subsidies per ha. Farmers will be given a direct subsidy and land pension in connection with long-term rental projects.

Korea Rural Community Corp. plans to provide support for young farmers’ smart farming.

In this case, farmers will receive 400,000 won in a monthly direct subsidy per ha, and a 5 percent land pension payout.

When the direct subsidy and land pension payment period ends, KRC will take over land parcels from related farmers and parcel them out to young farmers in a preferential fashion.

KRC will focus on implementing a new project targeting young farmers, which was launched this year.

KRC has set aside 17.1 billion won for next year, a 110 percent jump from 8.2 billion this year in a lease and buy projects, in which young farmers want to farm on their own land, but they lack funds.

Under the project, young farmers land parcels, pay out land money and acquire ownership.

They have seen their support area surge from 3 ha to 20 ha. The agricultural startup complex project, renamed “Youth Startup Smart Farming Complex,” calls for expanding each startup’s support area from 20 ha to 40 ha.

Beneficiaries will be selected in each local government’s contest. KRC plans to support 12 smart farms targeting young farmers at land parcels purchased for long-term rental.

Land Bank will appropriate 233.7 billion won for farming household management restoration, 242.3 billion won for agricultural pension and 27 billion won for the expansion of fruit farms.

Kwon Ik-hyun, head of the Lan Bank Division at KRC, said, “KRC has developed and implemented diverse projects to nurture young farmers and stabilize management of farming households, and we’re making thorough preparations for the upcoming parliamentary budget deliberation and the implementation of 2024 projects.”

A whole view of Korea Rural Community Corp. headquarters in Naju, Jeollanam-do.