Nonghyup launches W220b project to ease farmers' financial burden

Nonghyup is launching a 220 billion won ($146 million) farm management support project aimed at reducing farming costs and easing the financial burden on agricultural households. The initiative covers a broad range of measures — from fertilizer and feed price support to low-interest loans and smart farm expansion.

The National Agricultural Cooperative Federation announced Monday it would roll out the 220 billion won "Cheer Up! Our Agriculture" project. The initiative centers on lowering farm operating costs, cutting agricultural distribution expenses, providing financial support and building a foundation for future growth.

The largest share of the funding — 113.4 billion won — goes toward reducing production costs. Nonghyup will cover 80 percent of mineral fertilizer price increases in partnership with the central government and local authorities, and will supply feed at prices below those of competitors. Discounted nutrients and pesticides will also be provided.

To address the rural labor shortage, Nonghyup will provide a cumulative 250,000 farm workers free of charge in the second half of the year.

The retail sector will receive 17.7 billion won. The federation will subsidize logistics costs for joint-shipment distribution and, through agreements between wholesale markets and local agricultural cooperatives, compensate farmers for the difference when produce prices fall below a set threshold. Agricultural export marketing will also be expanded.

Financial support accounts for 74 billion won. Nonghyup will launch a farm loan product offering interest rate support of up to 2.5 percentage points and cut lending rates for farmers by up to 0.5 percentage point. Farmers hit by natural disasters will be eligible for emergency interest-free financing.

Alongside this, Nonghyup plans to spend 14.9 billion won to add more than 1,680 affordable smart farms, while also supporting farm management stability and long-term competitiveness through a livestock farm assistance program and crop disaster insurance support.

"We have put together federation-wide support to provide real, practical help to farmers struggling with extreme weather and high energy prices," a Nonghyup official said. "We will focus our efforts on boosting farmers' actual income, with the goal of reaching 30 million won in agricultural income."