직접지불금의 임차료 귀속과 규모별 쌀소득

Incidence of Direct Payments on Rents and Rice Income by Farm Size

In this paper, we investigated the impacts of rice direct payments on the income of rice producers in Korea after taking into account the potential incidence of directs payments on rent (thus affecting landowners income). In particular, a special attention was given to the possible heterogeneity of these impacts by farm size. We found significant effects of direct payments on rice industry in Korea: (1) The incidence rate of direct payments on rents is estimated as 30%, which is predicted to have stronger impacts on the income of a large-size farm than a small-size farm (contributing to the negative impacts on the scale effects in rice farming); (2) Under the scenario (constant target price+120,000 KRW /80kg rice price at 2015), a group of farmers with 2.5-3.0ha farm size are estimated to earn the highest 10a rice income (722,101 KRW); and (3) The government budget required for direct payments for rice farmers is estimated to be between 780,700 Million KRW and 2,183,000 Million KRW depending on the target price level (constant vs. variable target price scheme).