South Korea: Income stabilization insurance will be put into full-scale operation next year

Published Dec 2, 2024

Tridge summary

The article announces the launch of the agricultural income stabilization insurance in full scale from the next year, covering nine crops initially with plans to expand to 30. This insurance aims to mitigate the impact of fluctuating market prices and crops lost due to abnormal weather by providing compensation for decreased income. Farmers can choose different coverage levels and insurance products based on either average or expected income. The Ministry of Agriculture, Food and Rural Affairs assures fair calculation and highlights the insurance as a way to enhance the stability of agricultural management for farmers.

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Original content

The agricultural income stabilization insurance will be put into full-scale operation starting next year. Attention is focused on whether the government’s proposed income stabilization insurance will be an alternative to strengthen the safety net for farm income in a situation where agricultural disasters due to abnormal climate and unstable agricultural product prices are threatening the sustainability of agriculture. Income stabilization insurance is an insurance product that compensates for the decreased income when a farm’s income by item falls below a certain level. While crop disaster insurance compensates only for the decreased harvest, income stabilization insurance compensates for the decreased income by considering both the harvest and the price. The nine items subject to the full-scale operation to be implemented nationwide next year are garlic, onions, cabbage, grapes, beans, autumn potatoes, sweet potatoes, corn, and barley. Six new items, including rice, sweet ...

Source: Nongmin