Pursuit to Deregulate 21,000 hectares of Agricultural Promotion Area = The government plans to reorganize small plots of farmland left after developing agricultural promotion areas into roads, housing sites, and industrial complexes. These small plots, seen as less efficient for mechanized farming compared to larger, consolidated farmland, will have their designation as agricultural promotion areas lifted to remove land use restrictions. The intention is to allow cultural, welfare, and sports facilities, as well as amenities for nearby industrial complexes, to be built on these plots, thereby improving living conditions and attracting industries to revitalize the regional economy.

The Ministry of Agriculture, Food and Rural Affairs (MAFRA) estimates that there are 21,000 hectares of such small plots within agricultural promotion areas, accounting for 2.7% of the 774,000 hectares of agricultural promotion area farmland as of 2021. The government plans to announce a "Small-Scale Agricultural Promotion Area Reorganization Plan" in the first half of the year and will solicit development needs from local governments, proceeding with deregulation after feasibility reviews.

While there are expectations that this measure will make it easier for farmers to exercise property rights, there are also concerns about potential side effects. In a context where farmland is decreasing annually, relaxing regulations on high-quality farmland could negatively impact food security.

There are also worries about farmland speculation and unregulated development. Agricultural promotion areas are well-organized and easy to develop, and the land is inexpensive. If regulations are lifted, land prices and rents could rise due to development expectations, and non-farmers might own farmland for speculative purposes, posing challenges for young farmers and others struggling to secure farmland.

Han Hoon, Deputy Minister of MAFRA, stated, "Public land prices are determined by various factors such as the use of surrounding areas rather than just being in an agricultural promotion area, so I don't see much risk of land speculation if the designation is lifted. Additionally, even if the designation is lifted, it would be converted to non-agricultural promotion area farmland, so it wouldn't directly lead to a reduction in farmland area."

Some predict that the effectiveness of this regulatory improvement may be low. In 2016, the Park Geun-hye administration also attempted to deregulate 100,000 hectares of small plots within agricultural promotion areas for similar reasons, but with little success. Park Seok-doo, a research fellow at GS&J Institute, pointed out, "Past attempts to deregulate small plots of farmland for economic revitalization actually worsened the rural economy." He questioned, "Given that facilities and businesses don't enter rural areas primarily due to population decline and location issues, can deregulating farmland truly revive the regional economy?"

◆ Removing Restrictions on Farmland for Vertical Farms = Currently, container-type and building-type vertical farms require farmland conversion or temporary use permits to be established on farmland, unlike greenhouses or glasshouses. For container-type vertical farms, temporary use permits are limited to a maximum of eight years, after which the land must be restored to its original state. Vertical farm operators have criticized these regulations as unreasonable.

Yoon Won-sup, Director of Agricultural Policy at MAFRA, said, "We plan to amend the 'Farmland Act Enforcement Decree' in July to extend the temporary use period for container-type vertical farms." He added, "By the second half of this year, we plan to amend the 'Farmland Act Enforcement Decree' to allow all types of vertical farms to be established on farmland within specific districts under the 'Act on Restructuring and Revitalization of Rural Spaces' without additional restrictions." The government envisions that this regulatory improvement will lead to increased profitability and investment in vertical farms, realizing high added value in agriculture.

As discussions on redefining agricultural justice continue, the government's move to promote vertical farms is seen as a positive signal for recognizing smart farm activities, including registering agricultural management entities. However, there are concerns that indiscriminate installation of vertical farms could damage farmland.

◆ Temporary Stay Facilities for Non-Farmers on Farmland = The government announced plans to introduce "rural stay shelters," temporary stay facilities on farmland for urban residents or weekend farming participants. Given the increasing demand for mixed urban-rural lifestyles like the "5-Day City, 2-Day Rural" model, the plan aims to allow urban residents to experience rural living without purchasing a house or incurring significant costs, thereby increasing the living population.

Last year, the government attempted to amend the "Farmland Act Enforcement Rules" to clearly prohibit residential use of farm sheds but faced strong backlash from prospective return-to-farm and return-to-village residents. The new concept of rural stay shelters reflects urban residents' demand for rural living. Implementing rural stay shelters will require amendments to the "Farmland Act" and its enforcement decree.

Although the government is preparing specific plans, there are voices calling for a cautious approach, given the potential side effects such as a decrease in rural housing transactions and encroachment on farmland if temporary stay facilities are introduced. Choi Beom-jin, head of policy coordination at the Korea Young Farmers Association, pointed out, "There need to be measures to prevent non-farmers from indiscriminately encroaching on farmland with temporary stay facilities." He added, "As farmland is a crucial living space for farmers, institutional improvements should also include provisions for farmers, such as allowing accommodations for foreign workers on farmland."

Reporter Ha Ji-hye

Source: 농민뉴스