직접지불제 개편의 배경과 바람직한 방향

Background of the Reform for the Direct Payments Program & Its Future Desirable Directions

The purpose of this study is to examine the background and causes of the reform for the direct payments program (DPP) in agriculture along with the effects of the reform, and to suggest some future desirable directions, focussing on the rice industry. The study demonstrates that price support effects clearly work due to the variable DPP where the payment is directly linked to target price, which in turn leads to serious excess supply problems in rice market. The study also analyzes the impacts of the elimination of variable DPP. Furthermore, this study demonstrates that market orientation, i.e. market-oriented fixed DPP is the core in order for the reform to succeed. Also, the newly reformed DPP should be carefully designed, based on the market orientation, so as to achieve the critical goal of income stabilization for farm households and enhancement of social benefits through multifunctionality of agriculture.