[Opinion] The Light of Hope for Rural Areas, Farmland Transfer Retirement Direct Payment Project

Kim Gijin, Head of Hwasun Branch, Korea Rural Community Corporation

Although interest in rural areas is increasing, especially among the younger generation who value work-life balance and small but certain happiness, it is not yet at a level that can be felt statistically. This is also reflected in the forecast released by the Korea Rural Economic Institute. According to the 'Agricultural Outlook 2023,' the rural population, which is about 9.76 million in 2024, is expected to continue declining to 9 million in 2040 and 8.45 million in 2050.

Despite this statistical decline, the reason why agriculture and rural areas are not being abandoned worldwide is to respond to resource and environmental crises, create safe food, and contribute to revitalizing the rural economy.

The Korea Rural Community Corporation is actively promoting the Farmland Transfer Retirement Direct Payment Project starting this year to address the crisis of rural extinction caused by aging agriculture and rural areas and labor shortages on farms.

The significance of this project lies in its win-win strategy: providing sufficient direct payments to farmers who have devoted themselves to agriculture and offering good farmland, which has achieved substantial agricultural results, to young farmers starting out and those engaged in agriculture.

Eligibility for application includes farmers aged between 65 and 84 who have managed agricultural operations for more than 10 years and own farmland that has been consolidated for more than three years in either agricultural promotion areas or non-agricultural promotion areas.

Depending on the farmland transfer method, there are two ways to receive direct payments: one is by selling owned farmland, and the other is by linking with farmland pensions. Applicants can receive up to 2 million KRW at 500,000 KRW per hectare, and if linked with farmland pensions, they can additionally receive rent and farmland pension payments.

This project is a restructured version of the existing Management Transfer Direct Payment Project, with support funds increased from 270,000 KRW per hectare to 500,000 KRW, and the eligible age expanded significantly from up to 74 years old to up to 84 years old.

Starting this year, the 'Farmland Transfer Retirement Direct Payment Project' directly supports the post-retirement life of elderly farmers, ensuring a stable old age for them, and will undoubtedly serve as an important turning point for overcoming the rural extinction crisis and achieving sustainable development of agriculture and rural areas.

The present of retired farmers is the future of young farmers. Although the project began as a means to provide economic stability for retired farmers and support farmland for young farmers, it will clearly become a new opportunity for young farmers and a starting point for restoring rural communities.

The Korea Rural Community Corporation will continue to work alongside agriculture and rural areas as a reliable guardian of the Farmland Bank on the path to creating vibrant rural areas where youth return, rural areas with stable old age, and rural communities that enhance not only simple food production but also the public value of rural areas, enabling all citizens to live well together.