• Journal of the Korea Academia-Industrial cooperation Society
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• v.21 no.10
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• pp.406-414
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• 2020

The Farm-Closure Assistance (FCA) program is operated to compensate for lost farm income, to stabilize the management of low-competitive farms, and to enhance competitiveness of target items. The FCA, however, has several problems, such as the balloon effect and fraudulent receipts. Therefore, it is important to examine the operational problems of the FCA, establish improvement plans, and settle the measures. The objectives of this study are to analyze problems and suggest solutions for FCA, reflecting the viewpoints of local government officials who are in charge of actual tasks on the FCA front lines. The study analyzes whether characteristics of government officials lead to differences in setting the maximum amounts and extensions to FCA. Factors influencing the necessity of setting ceilings on FCA were work experience, recognition of agriculture's importance, and the FTA's impact on domestic agriculture, gender, and regions. Factors affecting the extension of FCA were the agency unit, work experience on the FTA, recognition of the effects of FTA direct payments and FCA, and recognition of the subsidy's direction. The results can be employed as a fundamental background that can set the direction for institutional improvement when the government tries to improve FCA.