Inventory of Sustainable Agricultural Policies

CHAPTER 2. Concepts and Theories of Sustainable

4. Inventory of Sustainable Agricultural Policies

The policy means for establishing sustainable agricultural systems are classified into five categories: economic means; regulatory means; information provision, R&D and education; agri-environmental resource management, and governance <Table 2-6>.

Representatives tasked with pursuing the economic means are levying en-vironment taxes (enen-vironmental improvement charges) on specific agricultural activities, ensuring the enforcement of emissions trading, managing the direct payment system for cross-compliance, providing support for agricultural risk management, and offering financial support for agricultural facilities and equipment. These actions are intended to discourage those actions that may bring about socio-economic and/or environmental damages and to encourage those actions that may bring benefits by providing economic incentives.

Representatives tasked with pursuing regulatory means are to present certain standards and enforce them. Such means are advantageous in that they can keep pace with the rapid changes in agricultural practices necessary to achieve the environmental changes. Even so, they are financially neutral policy measures. Their role is to set, regulate and enforce certain criteria, for example the amount of pesticide to be applied, the nutrient quota, how livestock manure is to be treated, and installing decontamination facilities.

Policies connected with the closely interlinked measures of information provision, technology development, education and support enhance farmer resilience in coping with various environmental changes by providing the farmers practicing the sustainable agriculture with the information about the agricultural environment required for farming activities. However, in order for farmers to utilize this information they also need to be educated. It is also possible to provide consumers with information on whether agricultural food is safe and excellent, by marking or certifying it. In addition, it is necessary to develop agricultural technology, prepare and distribute guidelines to farmers on its use and conduct field training so as to increase the effectiveness of education.

Agricultural resource management concerns the construction of agricultural infrastructure at a scale that farmers cannot manage by themselves. Currently,

South Korea is promoting agricultural resource management projects primarily through the RDA and Rural Community Corporation (RCC).

A final important component of sustainable agriculture involves conserving wild vegetation, seeds, genetic diversity and agricultural landscapes that provide ecosystem services. This is in addition to managing land, soil and agricultural water.

Table 2-6. Inventory of policies to establish sustainable agricultural systems

Means Characteristics Main Programs

Economic Means

• Provide economic incentives to agricultural activities

• Induce the change of relative prices of production factors and products

• Limitations in measuring costs-benefits for selecting policy measures

• Eco-taxes and environment improvement levy

• Emissions trading

• Direct payment

- Expand the direct payment for eco-friendly farming - Introduces menu-mode direct payment

(cross-compliance)

• Support for agricultural risks

- Support for part of the casualty insurance premium

• Investments in & financing for agricultural facilities and equipment

- Support the installation of pollution reduction facilities - Support the installation of efficient agricultural water

facilities

Regulatory Means

• Induce prompt change of the agricultural economic activities required for the environmental change

• Financially neutral policy means

• Regulation of the amount of pesticide use

- Set the Pesticide/fertilizer agency registration systems and the allowable pesticide residue level

- Strengthen the standard of eco-friendly agricultural materials

• Nutrient quota

• Restriction on livestock

Information Provision, R&D, Education&

Support

• Enhance the consumers’

recognition and reliability, marketing promotion

• Provide scientific information

• Promote R&D for sustainable agriculture

• Increase productivity through spreading/ training the production technologies

• Transfer know-how and support problem-solving

• Certification for eco-friendly agricultural produces/low-carbon agricultural/livestock produces

• Good Agricultural Practices (GAP)certification system

• Develop/operate the integrated agri-environmental information system

• Training for the agri-environmental information system

• Develop sustainable farming (organic

farming/environment-friendly farming) methods

• Manuals like Best Management Practices (BMP)

• Green recording

• Agricultural business consulting

Table 2-6. Inventory of policies to establish sustainable agricultural systems (continued)

Means Characteristics Main Programs

Agricultural Resource Management

• Construct agricultural infrastructure of a scale that farmers cannot manage on their own

• Build/manage the agricultural production basis through RCC

• Improve the agricultural resilience by using agro-ecosystem services and conserving biodiversity

• Farm road paving

• Farmland informatization including farmland scale-up/improvement

• Expands soil test/fertilizer prescription projects

• Irrigation facility modernization (maintenance/repair), water control capacity improvement

• Agricultural water quality improvement, automated agricultural water management

• Wild life, vegetation and landscape management

• Protect/manage of seeds/crop genes

Governance

• Prompt response to disasters in the local community

• Increase the reliability among subjects of the value chain, reduces the costs, and secure stable markets

• Enhance the recognition of environmental issues

• Agri-environmental status monitoring

• Raise responsibility through thorough monitoring and penalty

• Agreements among related parties

- Farmer-farmer agreement → Transfer of farming technologies, stable production, conflict mediation

• Voluntary agreement between the agricultural food value chains

- Farmer-distributor agreement, farmer-consumer agreement

• Integrated subsidy management system

• Environmental performance monitoring system

• Policy evaluation feedback system

- Strengthen the penalty for fraud acceptance of subsidies

Source: Kim Chang-gil ,et al. (2014), pPrepared on the basis of OECD (2010a) data.

Governance is the medium that enables each economic agent to perform their own roles well in building a sustainable agricultural system. Smooth cooperation and strong agreements between the parties related to agriculture help enhance the system’s capability to promptly cope with evolving market conditions and emergency situations through self-regulating and strategic agreements between the various parties. Farmer-farmer agreements improve the stability of agricultural production and provide additional solution options in solving any conflicts that may arise. Additionally, agreements may be made between actors within the agricultural food value chain (producer-distributor-consumer) stage. Moreover, thorough monitoring and evaluation systems should be established in order to identify and incorporate improvements to the sustainability of agriculture. Continuous monitoring and evaluation are

meaningful in that they highlight changes in the agricultural environment. Such knowledge guides adaptation that contributes to the conservation of the agricultural environment. It is also important by virtue of the fact that if farmers receive subsidies contingent upon their improvement of the agricultural environment, then monitoring and evaluation increases their accountability as well. Continuous monitoring and evaluation would also enhance the operation of an integrated subsidy management system since effective monitoring would allow for the identification and prosecution of fraudulent claims.

Empirical Analysis of Sustainable Agriculture

⁵

_Chapter 3

It is a given that empirical analysis is an important part in the development of a convincing sustainable agricultural system. Thus, it was an integral part of the first year study, in which the status of soil, agricultural water and nutrients were diagnosed from their environmental aspects. For the economic analysis, an integrated analysis was attempted so as to verify the compatibility between the environmental perspective and economic efficiency perspective. While analysis of the social aspects examined the social factors and social conditions of sustainable agriculture, summarized the empirical analysis and suggested implications.

5 Please note that the empirical analysis of sustainable agriculture is a recapitulation of the first-year research results (Kim Chang-gil, et al. 2013).

1. Environmental Aspect Analysis

1.1. Soil Variability

⁶

Soil plays an important role in promoting proper ecosystem management and increasing agricultural productivity. Proper soil management is crucial if a sustainable agriculture, one that guarantees environmental and economic efficiency, is to be achieved. However, for proper soil management to be achieved a rigorous scientific diagnosis and evaluation of the soil variability must first be undertaken.

The chemical properties of soil can be evaluated according to its characteristics, such as soil acidity, organic matter, effective phosphoric acid, and exchangeable cations like potassium, calcium and magnesium (Kim Chang-gil, et al., 2013). An analysis of changes in the soil environment reveals that the effective phosphoric acid level exceeds the optimal range by 1.3 times for rice paddies, by 1.4 times for fields, by 2.1 times for orchards, and by 2.1 times for protected farming in glasshouses and polyturnnels. For protected farming, the organic matter content of the soil is 1.2 times the optimal range, implying that the accumulation of nutrients as well as effective phosphoric acid has deteriorated considerably <Table 3-1>.With organic matter contained in the soil variability as a representative indicator of their contents was established as in Eq. (3-1) and estimated using OLS method, using 2012 soil test data which is internal data from the Soil and Fertilizer Department of RDA.

6 For analysis of the soil variability, the data from the Agri-environmental Change Monitoring Project performed by the National Academy of Agricultural Science (NAAS, 2012, 2013) is used. The Agri-environmental Change Monitoring Project has been conducted since 1999, based on Article 3 “Agricultural Resources and Agricultural Environment Survey” of the Environment-friendly Agriculture Promotion Act. This Project provides the basis for soil improvement policies for the farmlands and prepares a framework to ensure the sustainability of agriculture and the safety of agricultural produce through the quality-control of agri-environmental resources such as soil, water and microorganisms, improvement of fertilizer use, and agricultural pollution monitoring (Korean Soil Information System <soil.rda.ro.kr/>).

Table 3-1. Changes in Chemical Properties of Soil over the Years

Soil Type Acidity Organic Matter

range 5.5~6.5 25~30 80~120 0.25~0.30 5.0~6.0 1.5~2.0

Field

range 6.0~6.5 20~30 300~500 0.5~0.6 5.0~6.0 1.5~2.0

Orchard

‘93~’98 5.7 27 662 0.80 5.3 1.4

‘06 5.9 27 696 0.94 6.7 1.8

‘10 6.3 29 636 1.00 6.5 1.9

Optimal

range 6.0~6.5 25~35 200~300 0.3~0.6 5.0~6.0 1.5~2.0

Protected Farming ‘91~’93 6.0 31 861 1.07 5.9 1.9

‘95~’00 6.2 33 1,040 1.37 6.8 2.8

‘08 6.4 35 1,072 1.52 10.4 3.4

‘12 6.6 37 1,049 1.58 10.6 3.3

Optimal

range 6.0~7.0 25~35 350~500 0.7~0.8 5.0~7.0 1.5~2.5 Note: Data before 1999 is taken from the past soil test data, and data for rice paddy since

1999, for field since 2001, for orchard since 2002, and for protected farming since 2000 is taken from the soil variability monitoring data.

Source: A recapitulation of the data from Kim Chang-gil et al. (2013).

, , , (3-1)

where, represents the organic matter content (g/kg) of test point t; EFA dummy variable for the type of farming (1 is for environment-friendly agriculture and 0 for conventional farming; PA effective phosphoric acid content (mg/kg); LNADUSE dummy variable for the land use (1 for protected farming and 0 for fields); and REGION dummy variable for region (1 for Jeollanam-do region and 0 for other regions).

The result of estimation by the organic matter content function shows that the environment-friendly agriculture improves soil fertility. Also, compared to conventional agriculture which uses chemical fertilizers, the environment-friendly agriculture using organic fertilizer makes the soil more fertile.

Furthermore, protected cultivation has demonstrably higher organic matter content. It seems that, in the case of protected farming, nutrients are being returned to the soil more intensively than for field crops. This has a positive impact on soil organic matter content.

1.2. Water Resource Variability

1.2.1. Water Quality Variation⁷

Water quality variation can be evaluated using the following indicators:

hydrogen exponent value expressed in pH, dissolved oxygen (DO), biochemical oxygen demand (BOD), chemical oxygen demand (COD),total phosphorus (T-P), and suspended solids (SS) (Chang-Gil Kim et al., 2013).

River water quality has been at a satisfactory level suitable for the agricultural water quality standards (Living Environment Standard Grade IV, Environmental Policy Framework Act) for the past 10 years. SS, COD and TP has displayed the tendency of being gradually reduced over time.

7 The water quality variation data presented here is based on the Agri-environmental Change Monitoring Project performed by the NAAS (2012, 2013).

According to the result of agricultural water quality measurement for freshwater lakes and reservoirs in the country, the measured water quality has continued to deteriorate since 2006 with the number of water reservoirs holding water quality below the minimum standard for agricultural water quality increasing every year. Additionally measurements show that even among the reservoirs that meet, or exceed, the reference value with regards water quality , not one has been graded as Grade 1a (Very Good)⁸; this grade corresponding to the highest water quality level with a COD of 2mg/L or less. By contrast, since 2007, the number of reservoirs categorized as Grade IV (COD 8mg/L or less), the lowest level within the reference value, has increased year on year, 153 in 2006, 168 in 2007, 198 in 2008and 326 in 2009. Twenty percent (20.0%) of facilities, 29.8% of the benefiting area and 20.7% of the effective reservoir capacity have serious water pollution problems, such that they fail to comply with agricultural water quality standards.

1.2.2. Agricultural Water Demand

Agricultural water is the water required for farming; this primarily refers to the irrigation water required for rice paddies and fields but also includes the water needed for other agricultural activities such as pesticide application and livestock farming. In agricultural production, water is an essential factor. Most especially, to secure food produced by irrigation, a considerable amount of water is required, both in quality and quantity.

The water resource reserve of Korea (as of 2003) is estimated at 129.7 billion m³. When classified for water usage, stream water accounts for 22%

(7.5 billion m³) of the total water usage, household water for 23% (7.6 billion m³), industrial water 8% (by 2.6 billion m³), and the agricultural water 47% (16 billion m³)(Ministry of Land, Transport and Maritime Affairs, 2011).

Due to the reduction in the arable land area, the demand for agricultural water in 2020 is expected to be lower than at present. However, due to the fact that demand for agricultural water accounts for nearly 50% of the total amount

8 The water quality is measured based on COD(㎎/L), and classified into Grades la (2 or less), lb (3 or less), II (4 or less), III (5 or less), IV (8 or less), V (10 or less), and VI (over 10).

of current water use, it still accounts for a very large proportion of the total water use. In addition, Korea lacks the ability to cope with water shortages brought on by frequent droughts. Since the 1900s, Korea has experienced severe droughts every 5-10 years. Since the 1990s, with the onset of climate change, small- and large -scale droughts have occurred every 2 ~ 3 years and extreme droughts at a cycle of 7 years (A long-term Report on Water Resources 2011). Therefore, in order to establish sustainable agricultural systems, it is necessary to continuously secure and manage agricultural water.

Demand for agricultural water by each crop can be calculated by using the concept of a water footprint. The water footprint, in this case, being the amount of water needed for growing agricultural products. There are three categories of water footprint which can be calculated, namely green, blue and gray. For the water footprint of rice in Korea, the national average of green water footprint is about 522m³/t, the blue water footprint is about 885 m³/t, and the gray water footprint is about 48.5 m³/t. A comparison of the water footprint of each region shows that the water footprint of Jeollanam-do is the largest. This region has largest area under rice cultivation and thus the largest water usage.

With regards to the water footprints of food crops, each crop item consumes a different amount of water per unit of production. In case of legumes, the water footprint for mung beans is 4,085.6 m³/t, for soybeans 3,346.7 m³/t, and for red beans 3,166.9 m³/t. For barleys, the water footprint of buckwheat is 2,683.1 m³/t, for rye 1,741.5 m³/t, and for wheat 1,060.2 m³/t was the like. In case of root and tuber crops, the water footprint of sweet potato is370.0 m³/t and that of potatoes is 135.8 m³/t. This implies that the water consumption per unit production of crops is larger for legumes and barleys than for root and tuber crops.

In the case of vegetables, the water footprint of pepper is 1,133.4 m³/t, a figure considerably larger than the aforementioned crops. In terms of the water footprint over the years, the water consumption in 2004 and 2005 was the largest and in terms of water usage by regions, Jeollanam-do is found to have consumed the most water.

1.2.3. Status of the Agricultural Irrigation Facilities

In Korea, agricultural irrigation facilities have been installed mainly for the purpose of rice farming. As of 2013, area of rice paddies supplied with irrigation facility water from the irrigation facility stood at 777,280 ha, an area equal to 80.6% of Korea’s total rice area of 963,876ha.

In Korea, any plot of land supplied with irrigation water is assumed to be a rice paddy, the irrigation of which is fundamental to farming in Korea. That being said, about 20 percent of rice paddies experience unstable irrigation conditions. This figure worsens when Korea experiences a 10 year drought, falling to 74.0% of the irrigated rice paddies, which equals59.7% of the total rice paddy area, sharply down from 80.6%.

It is clear from this that agricultural irrigation in Korea is highly vulnerable to the onset of climate change. Under the current situation where local droughts and once in a 100 year floods are occurring much more frequently, the capacity of Korea’s agricultural irrigation facilities to cope with such disasters is significantly lower than Japan, where almost 100% of rice paddies are irrigated rice paddies. In addition, although the government had made efforts to expand field irrigation(including a project to maintain about 94,000 ha of fields under irrigation by 2011), the percentage of the field under such irrigation still amounts to only 13% of the total field area (Chang-Gil et al., 2013). The conclusion to be drawn from this is that in order to cope with ongoing climate change and ever increasing weather related crises, the modernization and redevelopment of irrigation facilities is urgently needed.

On the other hand, the percentage of irrigated rice paddies to which water supply would be available during a once every ten year drought amounts to96.7%

of the areas managed the Korea Rural Community Corporation (KRC) but only 26.2% of the areas managed by the local governments. This implies that the capacity of local governments to adequately respond to crises of this sort is in a serious condition.

The main problems facing agricultural irrigation facilities are aging, their small-scale and their mis-management. The scale of the agricultural irrigation facilities is small scale to the extent that 72% of agricultural irrigation facilities have a water supply area less than 10 hectares. Meanwhile, the total length of irrigation channels/drains is accounted to be 186,604km as of the end of 2013.

Of this, the length of the water channel is 117,415km (62.9%) and that of the drain is 69,189km (37.1%). Of the 117,415km of water channels, the length of the earthwork channel is 56,255km (47.9%) and that of the structured channel is 61,160km (52.1%). Of 69,189km of the drain, 48,583km (70.2%) is earthwork and 20,606km (29.8%) is structured. In order to reduce the costs for maintaining and repairing the irrigation facilities and to prevent water loss, restructuring the open water channels and drains into pipes is urgently needed.

In terms of facility age, of the existing 70,043 irrigation facilities, 41.8% are less than 30 years old, 31.3% are between 30 to 50 years old, and 26.9% are 50 years old or older. Together these facilities provide irrigation water services to a total of 778,362ha of the rice paddies <Table 3-2>.

Table 3-2. Types and Ages of the Irrigation Facilities

Unit: each

Total 70,043 100.0 29,305 41.8 21,898 31.3 18,840 26.9 778,362 Reservoir 17,477 100.0 831 4.8 4,498 25.7 12,148 69.5 453,010

Pumping

Station 6,691 100.0 3,685 55.1 2,697 40.3 309 4.6 168,374 Pumping/

Drainage 126 100.0 78 61.9 35 27.8 13 10.3 29,275

Drainage 912 100.0 838 91.9 62 6.8 12 1.3 -

Intake

Port 18,108 100.0 2,995 16.5 8,929 49.3 6,184 34.2 71,599 Collecting

Source: MAFRA, KRC (2013).

1.3. Nutrient Balance of the Arable Land

Of the nutrients put into arable land, the nutrient balance refers to the nutrients not up taken by plants in the process of growing and thus is comprised of the nutrients remaining in the soil, the nutrients dissipating into the air, or leaking outside of the soil by other avenues. In terms of the relationship between input and output, the nutrient balance of a certain area is an indicator of nutrients being applied beyond what is required to grow the crop. Therefore, a high nutrient balance equates to an increased environmental load. The nutrient balance can be measured according to the range in which the managed substances are applied. When the nutrient balance is measured for individual farms, it is called farm-gate balance. When it is measured for each region, it is

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