[Opinion] Will the Nong-an Act and Grain Act Become the 'Nongmang Act'?

"The law that ruins the future of agriculture is the Agricultural Disaster Prevention Act."

Minister Song Miryeong of the Ministry of Agriculture, Food and Rural Affairs had a noticeably different expression than usual. Her voice was strong, and her gaze was resolute. This was at a press briefing held on the 20th at the Government Complex Sejong. Minister Song sharply criticized the opposition party's push to amend the Grain Management Act (Yanggok Act) and the Act on Distribution and Price Stabilization of Agricultural and Fishery Products (Nongan Act).

The amendment to the Yanggok Act includes a provision requiring the government to compulsorily purchase surplus production when rice prices plummet or are expected to plummet. The amendment to the Nongan Act centers on a ‘price guarantee system’ where the government pays producers the difference if agricultural product prices fall below a certain standard. Both bills essentially guarantee farmers' income regardless of crop conditions.

The opposition party cites food security and stabilization of farm household income as reasons for the legal amendments. Since rice accounts for 47% of the total cultivated area in South Korea, they argue that mandatory rice purchases can provide a stable income base for farmers. As of December 1 last year, among the total 999,000 farm households, 38.4% (384,000 households) cultivate paddy rice.

Despite the plausible rationale in the opposition's amendment, it carries many problems. First, rice, which should be reduced in production, will be cultivated even more. The government has been encouraging reduced rice production and promoting alternative crops due to declining consumption. Year after year, rice piles up in warehouses while imports of other crops like wheat and soybeans increase. Per capita rice consumption last year was 56.4 kg, down 10.8 kg from 67.2 kg in 2013, and only about one-third of the 136.4 kg consumed 30 years ago in 1984.

As of 2022, the mechanization rate for paddy rice production is about 99.3% on average, significantly higher than the 63.3% mechanization rate for field crops. If the Yanggok Act passes, farmers who previously produced other crops may switch to relatively easier rice production, potentially causing prices of other crops to skyrocket. There is a high risk of distortion in the agricultural product market.

There could also be controversy over preferential treatment for some farmers. If government funds are distributed in a handout manner only to certain farmers, issues of fairness with citizens engaged in other industries will arise. From the perspective of fishermen or small business owners, guaranteeing fair prices and purchasing surplus production only for farmers is unfair. The complaint "Are only farmers citizens?" is understandable.

The Democratic Party is expected to forcibly pass the amendments to the Nongan Act and the Yanggok Act at the National Assembly plenary session scheduled for the 28th. President Yoon Seok-yeol is certain to exercise his veto immediately. Is there any possibility that the gap between the ruling and opposition parties will narrow in the 22nd National Assembly?

Minister Song said she could never accept the provision of ‘mandatory’ purchase. If it is for food security and farmers are in difficulty, the government should certainly consider additional support. However, the moment ‘mandatory’ is attached to the law, it becomes an inescapable quagmire. What if fishermen engaged in fisheries or self-employed business owners protecting local markets demand mandatory government support based on the same logic? This is a question the opposition party should ask itself.