쌀 고정지불금 인상의 효과와 적정수준에 관한 연구

A Study on the Effects of the Increase in Rice Fixed Direct Payment and Its Adequate Level

The purpose of this study is to examine the effects of the fixed direct payment on farm income and its adequate levels in Korean rice market. The results show that the increase in rice fixed direct payment significantly increases rice farm income although it has little effect on rice prices that farmers actually receive. For rice farmers, the higher the fixed direct payment the better since their income always rises with it. The adequate level of fixed direct payment obtained when the gap between target and market prices is fully compensated by it will continuously rise as the market price for rice is expected to fall in the long run with rapid expansion of trade liberalization. Furthermore, this study argues that the target level of one million won/ha that the government has proposed for fixed direct payment is too low compared to the adequate levels, and that the time will come soon when it should be increased much higher.