Lowering Barriers for Eco-Friendly Agriculture... New "Youth District" Established and Expanded Support Items

MAFRA to Revise Eco-Friendly Agriculture Infrastructure Development Project System

The government has decided to lower barriers and expand support for young farmers entering the eco-friendly agriculture sector.

The Ministry of Agriculture, Food and Rural Affairs announced on January 7 that it will improve (revise) the Eco-Friendly Agriculture Infrastructure Development Project system.

The Eco-Friendly Agriculture Infrastructure Development Project (Cluster District Creation) is a program that supports various areas such as production, processing, distribution, education and experience facilities, consulting, design and product development, and market expansion for agricultural corporations or cooperatives, as well as farmer and producer organizations. The government and local authorities provide up to 80% of the project cost within a support limit of 2 billion won (approximately 2 billion won) per project district. Since designating 19 cluster districts in 2022, a total of 66 districts have been supported to date. The Ministry of Agriculture, Food and Rural Affairs plans to designate and operate more than 140 districts by 2030.

First, a new "Youth District" (tentative name) will be established to enable young farmers under the age of 40, who often lack initial capital and experience, to enter the eco-friendly farming sector through agricultural corporations or cooperatives. In addition, the minimum area requirement for applying to the infrastructure development project will be significantly eased, lowering the minimum application area by up to 50% compared to the previous standard. As a result, the minimum application area for rice will be reduced from 10 hectares to 5 hectares, and for horticulture and processing from 5 hectares to 3 hectares.

The required documentation period for new applicants, such as financial statements, farming status, and sales slips, will be reduced from five years to three years. Young farmers will also receive additional points in the project selection evaluation, actively encouraging their participation in eco-friendly agriculture.

Furthermore, the range of eligible items for support will be greatly expanded for businesses selected for the eco-friendly agriculture infrastructure development project. When constructing production, processing, or distribution facilities, site preparation costs and design/supervision fees will be added as eligible items. The use of software, such as education and consulting for smart farm cluster districts and social network service (SNS) promotional expenses, will also be clearly specified in the guidelines to enhance policy effectiveness and actively promote project participation.

Lee Si-hye, Director-General for Agri-Food Innovation Policy at the Ministry of Agriculture, Food and Rural Affairs, said, "We hope that this system improvement will provide tangible benefits to eco-friendly farmers and further vitalize the eco-friendly agriculture sector. We will continue to communicate actively with the field and pursue ongoing system improvements so that the eco-friendly agriculture infrastructure development project can faithfully fulfill its role as a national policy task and serve as a cornerstone for implementing the 6th Five-Year Plan for Eco-Friendly Agriculture Promotion."