Jeonbuk Province Encourages Enrollment in "Agricultural Income Security Insurance"

Expected to Contribute to Stabilizing Farm Income

Jeonbuk Special Self-Governing Province is encouraging farmers to enroll in the "Agricultural Income Security Insurance" to help mitigate the decline in farm income caused by the diversification of disaster patterns due to abnormal weather and falling market prices.

According to Jeonbuk Province on May 7, the "Agricultural Income Security Insurance" is a policy insurance that, in addition to covering natural disasters and pest damage as provided by the existing Crop Disaster Insurance, also compensates for economic losses caused by a drop in market prices.

Agricultural Income Security Insurance Eligible Items and Coverage. Provided by Jeonbuk Province

In particular, if a farm's income from a specific item falls below a certain level compared to the reference income, the insurance pays out the difference, thereby supporting real income stability. Depending on the coverage level, compensation can be provided for up to 85% of the loss.

The reference income is calculated by multiplying the farm's average yield over the past five years by the Olympic average market price over the past five years.

This year, the Agricultural Income Security Insurance was fully expanded and revised, and now covers a total of 15 items, including nine items implemented nationwide and six items piloted in specific regions.

In the province, farmers in all 14 cities and counties can enroll in the nine main items, while in Namwon and Imsil, peaches have been added as a pilot item, allowing enrollment in up to ten items.

Eligible applicants are individuals or corporations who cultivate insured crops within the province, have completed agricultural business registration, and cultivate at least 1,000 square meters of each item.

Farmers who wish to enroll can submit an application at the local Nonghyup office where their farmland is located. However, since the insurance is sold sequentially according to the planting season and enrollment period for each item, farmers must check the schedule for each item and complete enrollment within the designated period.

For example, sweet potatoes and corn must be enrolled between April and June.

Since some coverage overlaps between the Agricultural Income Security Insurance and the existing Crop Disaster Insurance, farmers must choose one of the two. However, if a farmer wishes to be compensated not only for natural disasters but also for income losses caused by falling market prices, the Agricultural Income Security Insurance is more advantageous.

Choi Jaeyong, Director of the Agricultural Life and Livestock Industry Bureau, stated, "The Agricultural Income Security Insurance is an important policy tool that can respond to the complex risks of abnormal weather and price fluctuations," and added, "We hope that many farmers will actively enroll so that this can provide real help in stabilizing farm income."