Nonghyup Discusses Agricultural Price Stabilization Ahead of New Law Implementation

Nonghyup, South Korea's agricultural cooperative, convened a forum to discuss strategies for stabilizing agricultural product prices and establishing a robust supply management system. The discussions come as the nation prepares for the implementation of the revised Grain Management Act and the Agricultural and Fisheries Product Distribution and Price Stabilization Act (Agri-Food Act) on August 27.

The second Future Agriculture Forum, co-hosted by lawmaker Song Ok-ju and the Presidential Committee on Agriculture, Rural Development and Food, and organized by Nonghyup's Future Strategy Research Institute, focused on "Stabilizing Agricultural Product Prices and Establishing an Appropriate Production System." Key topics included the establishment of reasonable standard prices and conditions for price difference compensation under the new Agri-Food Act, as well as strengthening the roles of relevant agencies in managing agricultural product prices and supply.

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Presentations at the forum highlighted various aspects of agricultural policy. Jang Do-hwan, a research fellow at Nonghyup's Future Strategy Research Institute, discussed the contentious issues surrounding the price stabilization system and the need for a multi-layered safety net for farm households linked to item-specific supply stabilization policies. Park Young-gu, a senior researcher at the Korea Rural Economic Institute, proposed advancements in agricultural observation using drones and artificial intelligence (AI), emphasizing the importance of inter-agency cooperation to enhance the reliability of observational data.

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Leveraging advanced technologies like AI to improve the accuracy of agricultural supply forecasts and creating a virtuous cycle that supports stable production and reasonable pricing is the way forward for Korean agriculture.

Kim Hyun-sik, another research fellow at Nonghyup, presented a method for setting standard rice prices that reflects production costs and appropriate profits, offering an alternative to the existing Olympic average method amid rising production costs due to external environmental changes. During the comprehensive discussion, experts from government, self-help groups, farmer organizations, and Nonghyup agreed on the necessity of building a farmer-centric, autonomous supply system that integrates production, processing, consumption, and distribution, supported by an advanced database. They also suggested that detailed policy support is needed to ensure the price stabilization policies are practically effective in the field.

Lawmaker Song Ok-ju stated that leveraging advanced technologies like AI to improve the accuracy of agricultural supply forecasts and creating a virtuous cycle that supports stable production and reasonable pricing is the way forward for Korean agriculture. She pledged to reflect the forum's recommendations in legislative activities and policy formulation to build a multi-layered income safety net for farmers. Kim Ho, chairman of the Presidential Committee on Agriculture, Rural Development and Food, stressed the need for detailed guidelines and implementation infrastructure that farmers can feel, emphasizing support for a balanced approach between proactive supply control and post-hoc price stabilization.

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Revised Grain Management Act and the Agricultural and Fisheries Product Distribution and Price Stabilization Act have been passed, detailed guidelines and implementation infrastructure that farmers can feel must be meticulously prepared.