Nonghyup is pursuing a support package that will reduce farmers' management burden by a total of about 220 billion won, including cutting fertilizer and feed prices and loan interest rates.
On the 13th, the National Agricultural Cooperative Federation (Nonghyup) said it would begin full-scale implementation of its "Cheer Up! Our Agriculture" project, which covers reductions in farm production costs, agricultural and livestock product distribution costs, and financial costs.
The area with the largest support is easing the burden of agricultural production costs, with a support effect estimated by Nonghyup at 113.4 billion won. Nonghyup will delay price increases for inorganic fertilizer for one month and, together with the government and local governments, will support 80% of the increase. The resulting reduction in farmers' burden is expected to be 49.5 billion won.
For livestock farms, Nonghyup will apply a price increase rate 23% lower than competitors, reducing feed cost burdens by about 45.3 billion won. It will supply nutrients and pesticides to vegetable and fruit farms at discounts of up to 50%, and in the second half of the year, it will provide farming labor free of charge to a cumulative total of 250,000 people through rural labor assistance and other programs.
Easing the financial burden is expected to have a support effect of 74 billion won. For farmer members, young farmers, and returning farmers, Nonghyup will provide up to 2.5 percentage points in farm loan interest support and will also lower existing farmers' loan interest rates by up to 0.5 percentage points. It will also provide emergency interest-free financial support to farmers affected by disasters and calamities.
Nonghyup will provide 17.7 billion won to reduce distribution costs for agricultural and livestock products. When jointly shipping horticultural products, if logistics costs exceed 10 million won, it will support up to 18% of the cost. If auction prices at wholesale markets fall below a predetermined price due to natural disasters or surge shipments, it will also make up the difference.
Nonghyup will also invest 14.9 billion won to secure future agricultural competitiveness. It plans to distribute more than 1,680 affordable smart farms combining information and communication technology in existing greenhouses and open fields, and to exclude unavoidable natural disaster damage from crop disaster insurance premium surcharges.
The 220 billion won presented by Nonghyup is a combined figure that includes not only direct support but also farmers' cost savings from price increase restraint, interest rate cuts, and fee freezes. By area, the figures are 113.4 billion won for easing production cost burdens, 74 billion won for easing financial burdens, 17.7 billion won for reducing distribution costs, and 14.9 billion won for improving the management environment and supporting future growth.
