쌀소득보전직불제가 농지 임차수요에 미치는 영향

The Direct Rice Income Compensation Payment Program and Its Effects on the Demand of Farmland Rental Markets

In this paper, we investigated the impacts of direct rice income compensation payment program on the rental behavior of individual farms in Korea. In particular, we decomposed the effect of changes in rice price on the farmland rental demand into two parts, i.e., direct effects and indirect effects. The former represents the shift of rental demand curve caused by a rice price change, and the latter the movement along the demand curve caused by a rent change that is induced by rice price change. We found significant effects of rice price on the farmland rental demand. We also found that these effects differ by farm size. Specifically, a large-size farm (greater than 3 ha) is estimated to increase farm size through farmland rental markets in order to compensate his/her farm income decrease caused by an expected rice price drop. This implies that the implementation of direct income compensation program may have adverse impacts on the structural improvement of rice farms. Due to the direct income compensation program, farmland rental demand is estimated to decrease about 24.4 %~30.3% for a large-size farm at the year of 2015 compare to the situation without such a program.