Information on the policy of target price for rice
The rice target price is the reference price for the variable direct payment from the direct payment for rice income compensation
This policy has been introduced as a safety net for farm businesses after the abolishment of the purchase policy in 2005 in preparation for the rapid price fall in rice
When the local price of rice during the harvesting season falls below the target price, the variable direct payment which is the deduction of the already paid fixed direct payment from 85% of the difference between the target price and the local price
* Variable Direct Payment = (Targeted Price - Local Price) x 0.85 - Fixed Direct Payment
From 2005 to 2012, the target price was KRW 170,083 per 80kg rice, and from 2013 to 2017, the target price was KRW 188,000.
Since the introduction of the policy in 2005, a total payment of KRW 5.91 trillion has been paid in 9 installments.