South Korea: The area intended for rice cultivation is expected to decrease by 2%

Published 2024년 1월 29일

Tridge summary

The Korea Rural Economic Institute forecasts significant impacts on the rice and soybean markets in 2024 due to the direct payment system for strategic crops. The system improvements are expected to reduce the rice cultivation area, keeping rice prices higher than the previous year. Meanwhile, the soybean cultivation area is expected to increase by 1.9%, with prices lower than the previous year. The first half of this year will see a lower yield due to increased supply, particularly in carry-over storage potatoes, open field spring potatoes, and highland potatoes. The cultivation area for open field spring potatoes is predicted to increase by 1.1% in 2024, while the area for highland potatoes will decrease by 2.5%.

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Original content

In its ‘Agricultural Outlook 2024’, the Korea Rural Economic Institute predicted that the direct payment system for strategic crops, now in its second year of implementation, will have a significant impact on the rice and soybean markets this year. The key question is how much impact the system improvements that will be applied starting this year, such as increasing the unit price of direct payments and expanding the target items, will affect the reduction of rice cultivation area. ◆Rice = The Korea Agricultural Research Institute predicts that rice prices in the first half of 2024 will remain at a higher level than the previous year (179,000 won per 80 kg bag). It is explained that rice supply and demand conditions will improve compared to last year's harvest season as the government purchases 50,000 tons of new private grain stock for overseas aid. Unlike previous years, there was no separate forecast for the price of rice for the short season (July to September 2024) in 2023. ...

Source: Nongmin