Farmers' land lease trusteeship commission to be abolished starting next year

(Naju=Yonhap News) Reporter Jang A-reum = The entrustment fee for the farmland leasing trust business targeting farmers will be completely abolished starting next year. According to the Korea Rural Community Corporation on the 29th, the farmland leasing trust business is a service where the corporation entrusts land from farmers who find it difficult to manage it themselves, and leases it to full-time farmers or actual cultivators for a long term. The corporation has been promoting this business through the farmland bank since 2005, and has been charging an entrustment fee of 2.5% to 5% of the annual rental fee to the owners for post-management, etc. Since January of this year, the fee rate for farmer owners has been reduced from 5% to 2.5% to alleviate the burden on farmers. However, due to the recent increase in agricultural material prices and other difficulties in agricultural management conditions, it was decided to completely abolish the fee to support income preservation and business stability. Not only new contracts, but also farmers who are currently maintaining existing contracts will be exempt from all fees charged after January 1st next year. The Rural Development Administration plans to hold an explanatory meeting through its branches in January of next year to inform about the 2026 farmland bank business plan and the reform of the farmland leasing trust business. Kim In-jung, President of the Korea Rural Community Corporation, said, "We expect that the abolition of the entrustment fee will greatly help improve the farming conditions for farmers" and "We will lead the way in providing support to farmers through rational system improvements."