Farmland Pension Plans

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Farmland pension plans are growing in popularity, as they ensure stable earnings for elderly farmers in rural areas. Here are the details.

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Farmer Sohn Jong-won receives nearly 1,700 U.S. dollars in pension benefits every month thanks to his field measuring 10,000 square meters held as collateral. He plans to offer more of his farmland as collateral and switch to a lifelong scheme benefiting both him and his wife next year.

[Soundbite] Sohn Jong-won(Chungcheongbuk-do Prov. Resident) : "No one can be sure about the success of a year's farming until harvested. But this is a monthly salary, as it is paid every month. I have received it for nearly three years."

Sohn can receive pension benefits thanks to a farmland pension plan. Any farmer aged 65 or older is eligible for the farmland pension plans, which were introduced five years ago. Offered as either fixed-period or lifelong programs, pensions are calculated at 80 percent of the collateral farmland's appraised value. The pension programs ensure financially stable lives for elderly farmers who can also continue to farm on the collateralized land or buy it back if they want.

[Soundbite] Ryu Young-sun(Korea Rural Community Corporation) : "It has a dual benefit, as farmers can earn money by farming themselves or leasing out farmland while receiving a specific amount of pension with the farmland as collateral."

Farmland pension plans are drawing attention as a new welfare model for elderly farmers.