The government has selected garlic and onions as the first items for the agricultural price stabilization system, deciding to compensate for the difference up to 80 percent of the average wholesale price if the average agricultural price falls below the standard price.

The Ministry of Agriculture, Food and Rural Affairs announced that it held the 1st Agricultural Price Stabilization Deliberation Committee today (the 10th) at the aT Center in Yangjae-dong, Seoul, chaired by Vice Minister Kim Jong-gu, to deliberate on detailed operation plans including this measure.

The agricultural price stabilization system is a scheme where the government supports all or part of the difference when the average price of target agricultural products falls below the standard price.

This year, garlic and onions, which exhibit high price and production volatility depending on crop conditions, were selected as the primary target items.

The target items are planned to be expanded annually, taking into account their impact on the public diet, the establishment status of a preemptive supply and demand management system, and the availability of objective production cost statistics.

The standard price is set at 80 percent of the average wholesale price, fully incorporating management costs and reflecting all or a certain proportion of self-labor costs.

The average price is based on the harvest-season price of the respective crop, reflecting all prices for high, medium, and low grades.

For items with high price volatility, the support level will be raised step by step while simultaneously implementing supply and demand stabilization measures such as adjusting cultivation acreage and production volume.

Eligible recipients are farmers and agricultural corporations who cultivate 10a (1,000 square meters) or more of the same crop and have completed agricultural management entity registration or farming reports.

If income stabilization insurance payouts have been received, the supported amount will be deducted by that corresponding amount to prevent overlapping support.

For preemptive supply and demand management, the government requires farmers wishing to receive support to report their actual cultivation acreage during the sowing or planting season.

To ensure that self-help fund organizations perform their supply and demand management roles, farmers who have not paid into the self-help fund will have 20 percent deducted from their first-year payout, with the deduction rate to be increased step by step thereafter.

Local governments that fail to implement legal supply and demand plans, such as cultivation acreage adjustments, will receive differentiated support and allocation of related projects and price stabilization budgets.

The committee decided to hold an additional meeting within the year, reflecting the results of the National Assembly's budget deliberation, to expand the target items for 2027.

The target items and the differential payment ratio will be finalized through a future notice by the Ministry of Agriculture, Food and Rural Affairs.

Ministry of Agriculture, Food and Rural Affairs Vice Minister Kim Jong-gu stated, "We will operate the price stabilization system so that it not only stabilizes farm management but also leads farmers to participate in preemptive supply and demand management, thereby contributing to the stabilization of agricultural product supply, demand, and prices."

(Photo courtesy of the Ministry of Agriculture, Food and Rural Affairs, Yonhap News)