'High Oil Prices Squeeze' Facility Horticulture Agricultural Corporations Charged 130 Won per Liter for Fuel Costs

[Asia Economy Sejong=Reporter Kim Hyewon] The Ministry of Agriculture, Food and Rural Affairs announced on the 27th that it will provide temporary fuel price-linked subsidies to about 50,000 facility horticulture farmers (corporations) struggling with high oil prices.

The Ministry of Agriculture, Food and Rural Affairs decided to support fuel price-linked subsidies because the prolonged high oil price situation has worsened the management of facility horticulture farmers, whose heating costs account for more than 20% of their operating expenses, and there is concern about price inflation if some farmers give up cultivation as a result.

Accordingly, the Ministry secured 15.1 billion KRW from the 2022 general contingency fund and will support up to approximately 130 KRW per liter for the total amount of duty-free fuel purchased and used for heating by facility horticulture farmers from October to December this year (3 months).

To receive the fuel price-linked subsidy, facility horticulture farmers must visit the duty-free fuel management Nonghyup branch for each farm around January next year and submit an application form for the subsidy. Afterwards, the subsidy amount for each farm will be deposited into the dedicated payment account for duty-free fuel purchase cards.

The Ministry of Agriculture, Food and Rural Affairs and Nonghyup will require supporting documents from facility horticulture farmers if necessary and conduct on-site inspections to prevent fraudulent claims of the fuel price-linked subsidy. If inspections or requests from the Ministry and Nonghyup are refused, the subsidy may not be paid.

Kim Jong-gu, Director of Distribution and Consumption Policy at the Ministry of Agriculture, Food and Rural Affairs, said, "We have launched this temporary fuel price-linked subsidy program to ease the burden on facility horticulture farmers who are struggling with high operating costs. We will continue to make efforts to stabilize farmers' management, as we have done through consultations with budget authorities."