NongHyup Launches 220 Billion Won ‘Cheer Up! Our Agriculture’ Project… Subsidies for Fertilizer, Feed, and Free Labor Supply

Comprehensive Group-Wide Support from NongHyup
for Reducing Farming Costs, Expanding Financial Aid,
and Improving the Business Environment

NongHyup is launching a support program worth 220 billion won to stabilize the business operations of farmers, providing price subsidies for agricultural supplies such as mineral fertilizers and feed, as well as the free supply of farm labor.

On July 13, NongHyup Central Headquarters announced the official launch of the “Cheer Up! Our Agriculture” project, a 220 billion won initiative established as part of the major transformation announced on July 8. The project focuses on three main pillars: alleviating farm management costs, reducing agricultural product distribution and financial burdens, and supporting future growth.

Front view of the NongHyup Central Headquarters.

A NongHyup official commented, "This project aims to provide comprehensive support centered on four key areas to protect farmers facing challenging business conditions such as high inflation and high interest rates. It is a group-wide initiative by NongHyup, offering support for reducing farming costs, expanding financial support, and improving the overall business environment."

First, NongHyup will allocate 113.4 billion won to ease the burden of production costs for farmers. This includes subsidizing the prices of agricultural supplies such as mineral fertilizers and feed and providing farm labor free of charge. For mineral fertilizers, NongHyup will defer price increases for one month to accommodate peak season demand and, together with the government and local authorities, will cover 80% of the price increase, providing a total benefit of 49.5 billion won in reduced purchasing costs.

To ease the feed cost burden for livestock farmers, NongHyup will apply a price increase rate that is 23% lower than competitors, resulting in a total production cost saving of 45.3 billion won. Additionally, to stabilize the production of vegetables and fruit, fertilizers and pesticides will be supplied to farmers at discounts of up to 50%. NongHyup will also provide free labor to approximately 250,000 farm workers during the second half of the year through nationwide farm labor support initiatives and collaborations with the Ministry of Justice.

To reduce the distribution costs of agricultural and livestock products, NongHyup will invest 17.7 billion won to strengthen logistics support and diversify agricultural product sales channels. For joint logistics shipments of horticultural products, up to 18% of the logistics costs will be subsidized for shipments over 10 million won. In response to price drops caused by natural disasters or flood-related shipments, NongHyup will sign business agreements (MOUs) between wholesale markets and local NongHyup cooperatives to compensate for the difference if the auction price falls below the agreed price.

To further alleviate the management burden for livestock farmers, NongHyup will maintain cattle slaughter fees at a level 7.6% lower than private sector rates. To expand agricultural product exports, NongHyup will promote marketing to global markets, host agricultural product sales events in partnership with NongHyup Financial Group, and develop related products to diversify sales channels for agricultural products.

NongHyup will also invest 74 billion won to ease the financial burden on farmers. For farmer members, young farmers, and returning farmers, NongHyup will launch low-interest loan products that provide up to a 2.5 percentage point interest subsidy, offering financial benefits worth 42.1 billion won. Additionally, a special preferential deposit product with an annual bonus rate of 0.2 percentage points will be offered, allocating 10 billion won, and the maximum interest rate on farmer loans will be reduced by up to 0.5 percentage points, providing support worth 17.6 billion won. For diligent interest-paying customers, NongHyup will support partial principal repayment, and for farmers affected by disasters or calamities, 3.7 billion won will be set aside to quickly provide emergency interest-free financial support.

Support worth 14.9 billion won will also be provided to help stabilize the business environment for farmers and enhance the competitiveness of future agriculture. For livestock farmers facing temporary management gaps, NongHyup will launch a helper program to support feed supply and barn management. Additionally, to improve farmers' business environment, crop disaster insurance surcharges will be waived for unavoidable disaster damages.

Furthermore, NongHyup plans to invest 13 billion won in existing greenhouses and open fields to supply more than 1,680 affordable smart farms equipped with information and communication technology (ICT), while also offering agricultural finance consulting to strengthen the long-term income base of farm households.

A NongHyup official stated, "This project is a support measure prepared by the entire NongHyup group to provide practical assistance to farmers facing complex challenges such as abnormal weather and high oil prices. Moving forward, we will make it our top priority to help farmers achieve an annual income of 30 million won, enhance their real benefits, and concentrate all our efforts on building a sustainable foundation for future agricultural growth."

This content was produced with the assistance of AI translation services.