Ministry of Agriculture Pays 120.3 Billion Won in Income Insurance to 20,700 Farms

▲ Agricultural Products

The Ministry of Agriculture, Food and Rural Affairs announced today (July 12) that 120.3 billion won in insurance payouts has been distributed to 20,700 farms for nine agricultural items whose harvest-season prices have been finalized, out of the 15 items covered by the agricultural income stabilization insurance sold last year.

Agricultural income stabilization insurance is a policy insurance that compensates for income losses caused not only by yield reductions due to natural disasters or fires but also by fluctuations in market prices.

If a farm's income for the current year falls below a certain level of its reference income, the difference is paid out as insurance money.

Due to the impact of price drops this year, 15.9 billion won was paid for early-maturing onions, and 12.2 billion won was paid for cabbage.

The Ministry of Agriculture, Food and Rural Affairs explained that while the net insurance premiums for agricultural income stabilization insurance were higher than those for crop disaster insurance, the compensation level was relatively higher because the income stabilization insurance covers both natural disaster risks and price fluctuation risks.

In addition, 2.2 billion won in insurance payouts was provided for items such as autumn cabbage, where yields decreased due to natural disasters and prices subsequently rose.

For the remaining six items sold last year (barley, peaches, sweet persimmons, grapes, garlic, and mid-to-late maturing onions) and items sold this year, insurance payouts will be calculated and distributed as soon as their harvest-season prices are finalized.

The Ministry of Agriculture, Food and Rural Affairs is adding five items (apples, pears, open-field green onions, greenhouse green onions, and greenhouse watermelons) to the agricultural income stabilization insurance program this year and expanding the coverage area for autumn cabbage and radishes nationwide.

NH NongHyup Property & Casualty Insurance is responsible for the sales, damage assessment, and insurance payout operations for the agricultural income stabilization insurance.

The Ministry of Agriculture, Food and Rural Affairs serves as the overarching body managing and supervising the project, providing government subsidies for insurance premiums and operating expenses.

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