Providing FTA Damage Compensation Direct Payments to Oat Farmers

Application Deadline May 12... "No Closure Support Funds Available"

[Sejong=Asia Economy Reporter Moon Chaeseok] The government will compensate oat farmers affected by market opening following Free Trade Agreements (FTA).

The Ministry of Agriculture, Food and Rural Affairs announced on the 22nd that oats have been confirmed as a target for direct compensation payments for damages this year. Closure support payments will not be provided. From the 23rd until next month 12th, the ministry will conduct an administrative notice period for the draft announcement on the selection of items eligible for this year's FTA damage compensation direct payments and closure support payments.

As the number of FTAs with foreign countries increases and pressure to open agricultural markets intensifies, including the signing of the Regional Comprehensive Economic Partnership (RCEP) at the end of last year, the government supports certain items under the "Special Act on Support for Farmers and Fishermen due to FTA Conclusion".

This year, the Korea Rural Economic Institute's FTA Implementation Support Center selected support targets based on a total of 155 items, including 42 items monitored for import damage and 113 items applied for by farmers and producer organizations. The selection criteria include last year's annual price and import volume.

As a result of the analysis, only one item, oats, was decided as eligible for direct payment this year. The import contribution rate for oats is 100%. The payment ceiling for direct payments is 50 million KRW for agricultural corporations and 35 million KRW for farmers.

The Ministry of Agriculture, Food and Rural Affairs will post the analysis results, supported items, and import contribution rates on its website and accept objections from farmers and producer organizations from the 23rd until next month 12th. If there are objections, opinions can be submitted to the ministry's Agricultural Policy Division using the form in the "Legislation and Administrative Notice" section on the ministry's website.

After the objection process and review by the support committee for farmers and others, the ministry plans to finalize the list of items eligible for direct payments and closure support around June this year.