preface

Part 1 Introduction

Chapter 1: The Changing Role of Agriculture and Future Agricultural Policy
Section 1: Why is agriculture multifunctional?
1.1 Changes in the economic status of agriculture
1.2 Changes in national awareness
1.3 The Era of Future Sustainable Development
1.4 Limitations of the Free Trade System and Food Security
1.5 The Advent of the Era of Advanced Technology Agriculture
Section 2: Why Direct Payment Agricultural Policy?
2.1 GATT Protectionist Agricultural Policy and Price Support
2.2 WTO liberal agricultural policy and direct payments
Section 3 Agriculture and Agricultural Policy in a Future Sustainable Society
The multifunctionality and public value of agriculture

Part 2: The Multifunctionality and Public Value of Agriculture

Chapter 2: Introduction to the Multifunctionality of Agriculture
Section 1. The significance of the multifunctionality of agriculture
1.1 Definition of concepts
1.2 Definitions of this book
1.3 Non-commodity agricultural output
Section 2 Types and Classification of Multifunctional Agricultural Systems
2.1 Positive functions
2.2 Negative functions
Section 3: International Discussion on the Multifunctionality of Agriculture
3.1 The Uruguay Round and the OECD Discussions
3.2 WTO Agreement on Agriculture and NTC
Section 4. The multifunctional and public functions of agriculture
4.1 Public function of agriculture
4.2 Sources of public interest
Section 5: Examples of the pluralistic public interest functions of agriculture
5.1 Rice paddy farming
5.2 Field and Pasture Agriculture

Chapter 3: Multifunctional Agriculture and Combined Production
Section 1: The Concept of Combined Production and Agriculture
1.1 Concept of combined production
1.2 Multifunctionality and Combined Production in Agriculture
Section 2 Factors of Cohesion
2.1 Technological Interdependence
2.2 Sharing of indivisible factors of production
2.3 Divisible factors of production
2.4 The problem of associativity in multifunctional systems and its characteristics
Section 3 Determining the supply of joint products
3.1 Optimal production of joint products
3.2 Selection of joint outputs in multi-functions
3.3 Complexity of Combined Production Relationships
Section 4. Multifunctional production in agriculture
4.1 Production of positive externalities
4.2 Production of negative externalities
Section 5 Food Security and Production Integration
5.1 Concept and Requirements of Food Security
5.2 Food and Food Security
5.3 Relationship between domestic production and trade
5.4 National and Global Food Security
5.5 Food Security and Non-Commodity Combined Outputs of Agriculture
Section 6 Policy Implications of Combined Production
6.1 The Policy Importance of Connectivity
6.2 Economies of Scope

Chapter 4: The Multifunctionality and Externalities of Agriculture
Section 1. The meaning and types of externality
1.1 The meaning of externality
1.2 Types of externalities
Section 2 Externalities and Market Failure
2.1 Market Function and Pareto Efficiency
2.2 Factors of market failure
2.3 Externalities and Market Failure
Section 3. The Diversity of Agriculture and Externalities
3.1 Rural landscape
3.2 Food Security
3.3 Other non-commodity combined outputs
Section 4 Correcting Market Failure
4.1 Coase's Theorem
4.2 Government Regulation and Public Policy
4.3 Government Failure
Section 5: Characteristics of External Effects in the Multifunctionality of Agriculture
5.1 Atypicality of external benefits
5.2 External Marginal Benefits and Market Failure
5.3 External marginal benefits of food security
Section 6: The Diversity of Agriculture and Correction of Market Failure
6.1 Correcting External Benefits and Market Failures
6.2 Limitations and Policy Implications
6.3 Regional extinction and market failure

Chapter 5: Multifunctionality and Public Goods of Agriculture
Section 1: Concept and Characteristics of Public Goods
1.1 The concept of public goods
1.2 Public goods and market failure
Section 2 Determining the optimal supply level of public goods
Section 3 Classification of Public Goods
3.1 Diversity and Complexity of Public Goods
3.2 Imperfect public goods
Section 4. Multifunctionality and Public Goods of Agriculture
4.1 Significance
4.2 Public Good Characteristics of Agriculture's Multifunctionality
4.3 Policy Implications

Chapter 6: Valuing and Limitations of the Multifunctionality of Agriculture
Section 1 Meaning
Section 2 Use value and non-use value
Section 3. Monetary value estimation methods and their limitations
3.1 Estimation method
3.2 Limitations of Estimation
Section 4: The Value of Multifunctionality in Korean Agriculture
Section 5: Limitations of Estimating the Multifunctional Value of Agriculture
5.1 Essential and Inherent Limitations
5.2 Limitations according to individual differences and situations
5.3 Methodological limitations
5.4 The problem of negative externalities
Section 6: The True Value of Multifunctional Agriculture
6.1 GDP Problems and the Multifunctionality of Agriculture
6.2 The multifunctionality of agriculture and its value
6.3 The value of agriculture and agricultural products

Chapter 7: Multifunctionality of Agriculture and Government Policy
Section 1. Criteria for Judging Policy Interference
1.1 Efficiency and Market Failure
1.2 Equity
1.3 Non-economic goals of the country
Section 2: The Multifunctionality of Agriculture and Conditions for Policy Intervention
2.1 Combined production relationship
2.2 Economies of Scope
2.3 Market Failure
Section 3. Choice of Policy Tools and Future Agricultural Policy
3.1 Selection Criteria
3.2 Policy Implications: Non-Linked Targeted Payments
3.3 Limitations of implementing efficiency-based policies
3.4 Multifunctionality of Agriculture and Future Agricultural Policy
Section 4: Effects of Policy Intervention

Part 3 Agriculture and Direct Payment Policies

Chapter 8: Basic Discussion of Direct Payments
Section 1: Background of the emergence of direct payment
1.1 Global Agricultural Reform and Changes in Agricultural Policy
1.2 The changing role of agriculture and the increasing complexity and diversification of agricultural policy goals.
Section 2 Agricultural Policy Structure and Payment Policy
2.1 Basic Structure of Agricultural Support and Agricultural Policy
2.2 Two Axes of Agricultural Support Policy
2.3 Changes in payment policy and direct payment
Section 3: The Concept of Direct Payment
3.1 Direct payment of agreement
3.2 Direct payments in a broad sense
3.3 Direct payment in the broadest sense
3.4 Direct Payments under the WTO Agreement on Agriculture
3.5 Direct Payment in this Book
3.6 Components of Direct Payment
Section 4 Direct Payments and Decoupling
4.1 The concept of decoupling
4.2 Measurement of decoupling degree
Section 5 Policy Objectives of Direct Payments
5.1 Stabilization of farm income
5.2 Promoting Agricultural Restructuring
5.3 Promoting the Multifunctionality of Agriculture
5.4 Other various policy objectives
Section 6 Direct Payments and Price Support
6.1 Mechanism of Price Support and Payment Policies
6.2 Advantages of Direct Payment
6.3 Criticism of Direct Payments

Chapter 9 WTO Agreement on Agriculture and Direct Payments
Section 1. Requirements for Permission of Domestic Support Measures and Direct Payments
1.1 Provisions of the Agricultural Agreement
1.2 Basic Requirements
1.3 Detailed criteria
Section 2 Market Distortion Mechanism of Price Support
2.1 Market distortion due to domestic policy
2.2 Market distortion due to trade policy
Section 3 Types and requirements for direct payments exempt from reduction obligations
3.1 Non-linked income support
3.2 Income Insurance and Income Safety Net Support
3.3 Natural Disaster Relief Payments
3.4 Restructuring Support
3.5 Payment for implementation of environmental policies
3.6 Payment for regional support policies
3.7 Other direct payments
Section 4 Direct Payment Conditions for Production Restrictions
Section 5: Agricultural Agreements and Support for Multifunctional Agriculture
5.1 Direct Payment
5.2 Government Service for Public Stockpiling for Food Security

Chapter 10: Direct Payments and Global Agricultural Policy Change
Section 1 OECD's Agricultural Policy Evaluation
1.1 Evaluation Indicators PSE and %PSE
1.2 Calculation of PSE
Section 2 Composition of PSE and Direct Payment
2.1 Basic structure of PSE
2.2 Components of PSE
2.3 PSE and Direct Payment
Section 3: Global agricultural policy changes and direct payments
3.1 OECD agricultural policy changes and direct payments
3.2 EU agricultural reform and direct payments
3.3 Agricultural reform and direct payments in the United States
3.4 Agricultural reform and direct payments in Switzerland
3.5 Japan's Agricultural Reform and Direct Payments

Chapter 11: Direct Payments and Agricultural Policy Changes in Korea
Section 1 Background and Significance of the Introduction of the Direct Payment System
1.1 Introduction Background
1.2 Implications for Korean Agricultural Policy
Section 2. Current Status and Characteristics of the Direct Payment System
2.1 Status of direct payment system
2.2 Purpose and nature of the direct payment system
Section 3 Reform of the Direct Payment System and the Public Service Direct Payment System
3.1 Evaluation of the Direct Payment System
3.2 The emergence of a new direct payment system
Section 4 Achievements of Agricultural Reform and Direct Payments

Chapter 12: Direct Payments for Rice and the U.S. Product Payment Policy
Section 1: Why is the Direct Payment System for Rice Important?
Section 2 Background of the introduction of the direct payment system for rice
2.1 Protectionist agricultural policies and the status of the rice industry
2.2 Rice Industry Reform and Direct Payments
Section 3 Deficit Payment System
3.1 Basic structure and effects
3.2 Institutional Characteristics
Section 4 Price Fluctuation Response Payment System and Import Conservation Payment System
4.1 Basic Structure and Effects of CCP
4.2 Conceptual Review of the CCP Effect
4.3 Character of the CCP
4.4 Price Loss Compensation PLC
4.5 Import Conservation Payment ACRE ARC
Section 5 Structure and Characteristics of the Direct Payment System for Rice
5.1 Structure of the Direct Rice Payment System
5.2 The nature of the rice direct payment system and total AMS
Section 6 Effects of the Direct Payment System for Rice
6.1 Price Support and Production Effects
6.2 Trade Effects
6.3 Welfare Changes and Income Redistribution Effects
6.4 Effects of Policy Variable Changes
6.5 The Effects of the Direct Payment System for Rice and Decoupling
Section 7. Comparison of the Direct Payment System for Rice with the DPP and CCP
Section 8: Evaluation of the Direct Payment System for Rice and Policy Implications
8.1 Systemic Problems
8.2 Operational Issues
8.3 Summary and Policy Implications

Chapter 13 Korea's Public Direct Payment System
Section 1. Significance of the public interest function of agriculture and rural areas
1.1 Public function of agriculture
1.2 Public service functions in rural areas
1.3 Negative externalities and public welfare functions of agriculture
Section 2 Status of public interest functions as indicated in laws and regulations
Section 3 Scope and Types of Agricultural and Rural Public Interest Functions
3.1 Legal definitions and types
3.2 This book's position
Section 4 Direct Public Payment System
4.1 Purpose and Structure of the Public Service Direct Payment System
4.2 Basic public direct payment
4.3 Optional public service direct payment
Section 5 Producer Responsibilities and Obligations
5.1 Mutual compliance obligations
5.2 Mutual compliance obligations under the law
Section 6 Evaluation of the Public Service Direct Payment System
6.1 The effectiveness of promoting public interest functions
6.2 Farm income stability and equity issues
6.3 Market Orientation Issues
6.4 The problem of public perception

Chapter 14: The Future of Public Direct Payments and Product Policy
Section 1: Future Direction of the Public Service Direct Payment System
1.1 Strengthening public interest functions
1.2 Stabilizing farm income and improving equity
1.3 Enhancing market orientation
1.4 Expansion of the direct payment system
Section 2 Public Direct Payment System and Income Redistribution
2.1 The Importance of Income Redistribution Policy Intervention
2.2 Regressive payment unit price of area-based direct payment
2.3 Searching for a New Regression Model
2.4 Income Distribution and the Public Welfare Function of Agriculture
Section 3 Food Security and Direct Payment System for Commodities
3.1 The necessity of a direct payment system for items
3.2 Type 1 Area Direct Payment + CCP
3.3 Type 2 Area Direct Payment + DPP

Part 4: Agriculture and Agricultural Policy in a Future Sustainable Society

Chapter 15: Climate Change, Agriculture, and Direct Payments
Section 1 Global Warming and Climate Change
1.1 Significance of Climate Change
1.2 Causes and effects of climate change
1.3 International Discussion
1.4 Korea's Response and the Carbon Neutrality Basic Act
Section 2 Carbon Neutrality
2.1 Definition of carbon neutrality
2.2 Theoretical Considerations of Carbon Neutrality
Section 3: Climate Change and Agriculture
3.1 Impact of Climate Change on Agriculture
3.2 The Impact of Agriculture on Climate Change
Section 4: Climate Change Policy Response and Direct Payments
4.1 Policy Responses to Climate Change and Agriculture
4.2 Problems with the agricultural production structure
4.3 Carbon neutrality in agriculture
4.4 Climate Change and the Role of Direct Payments
Section 5: Climate Change and Global Market Failure

Chapter 16: Limits to Growth and Future Agricultural Policy
Section 1 Limits to Agricultural Growth
1.1 Slowing agricultural growth and stagnant income
1.2 Limitations of Growth-Oriented Agricultural Policy
1.3 The Duality of Technological Progress
Section 2: Redefining the Future of Agriculture and Its Role
2.1 The Advent of the Era of Advanced Technology Agriculture
2.2 Smart Agriculture and Its Pros and Cons
2.3 Redefining the Role of Future Agriculture
Section 3 Future Direction of Agricultural Policy
3.1 A major shift in agricultural policy: moving away from growth-first thinking
3.2 Agricultural restructuring and rural restructuring
3.3 Stabilizing farm income and improving equity
Section 4: Establishment of a Direct Payment-Centered Agricultural Policy System
4.1 Necessity
4.2 Establishing a direct payment-centered agricultural policy system

Chapter 17: Sustainable Agricultural Development and Integrated Agricultural Policy
Section 1: Introduction to Sustainable Agricultural Development
1.1 The significance of sustainable development
1.2 Sustainable agricultural development
1.3 The Correlation Between Growth and Happiness
Section 2: Sustainable Agricultural Growth and Steady-State Balance
2.1 Macro Perspective on Sustainable Agricultural Growth
2.2 Long-term balance of agricultural growth
Section 3 Conditions for Sustainable Agricultural Development
3.1 Sustainable agricultural growth
3.2 Stabilization of farm income
3.3 Optimal expression of the multifunctionality of agriculture
Section 4: Present and Future of Korean Agriculture
4.1 Sustainability of Korean Agriculture
4.2 Future Sustainable Agricultural Development
Section 5 Sustainable Agricultural Development and Integrated Agricultural Policy
5.1 The Need for a Comprehensive Approach
5.2 Characteristics of integrated agricultural policy
Section 6: Elevation to Constitutional Value

References
Search

This book focuses on how Korea's agriculture and agricultural policy must change in the future era of sustainable development.
We are redefining the role of agriculture and moving beyond growth-oriented agriculture and agricultural policies to achieve sustainable agricultural development, and are exploring ways to achieve this.

Agriculture, once a central industry of the nation, now accounts for only 1% of GDP.
Since the mid-1990s, agricultural growth has been in a long-term stagnation phase, and farm household income has remained at around 10 million won for nearly 30 years.
Farm household income is reaching up to 60% of urban household income, and income inequality between urban and rural areas is deepening by the day.
Moreover, our food self-sufficiency rate is the lowest among OECD countries, so we always live with food security insecurity.
The government has consistently pursued agricultural growth policies over the past several decades, but has failed to reverse the major trend of agricultural decline.
From an economic perspective alone, our agriculture can no longer be said to be an important industry for the country.
It has only led to the destruction of rural landscapes and environments, the aging and hollowing out of rural areas, and the exacerbation of the problem of regional extinction.
This is the background against which we cannot help but ask again why we need agriculture now and what its reason for existence is.


The Korean Framework Act on Agriculture, Rural Areas, and Food Industry (Framework Act on Agriculture) defines the direction of national agricultural policy as sustainable development of agriculture and rural areas.
And it is stated that agriculture is a basic industry that performs economic and public functions and serves as the foundation for the country's economic, social, and cultural development.
Nevertheless, the government has so far stuck to growth strategies like other industries, under the slogan that agriculture is a future growth industry.
However, agriculture, which is based on nature and life, is not simply an industry that makes money, grows, and increases national wealth.
We must be able to provide a long-term, stable supply of safe food to the people and future generations, and at the same time, the sustainability of nature, the environment, and the ecosystem must be secured through agriculture.
The sustainability of rural landscapes and communities must also be ensured.
The role of agriculture must be expanded and reestablished as a public service and diversified function as stipulated in the Basic Agricultural Act.
Agriculture must go beyond its simple economic and industrial role and contribute to the realization of a sustainable society where all people, including future generations, can live happily together through sustainable agricultural development.
The basic framework of agricultural policy must also change from the past market intervention-based price support system to an agricultural policy system centered on direct payments based on national finances.
And we must shift from a linear industrial policy approach to a comprehensive agricultural policy that can address complex agricultural issues such as food security, environmental protection, resources and energy, and climate change.
Naturally, the public nature of agriculture is strengthened and a public role by a large government is required.


Against this backdrop, the book first sought to examine and systematize the multifunctionality of agriculture and the issues of direct payment.
And while exploring ways to achieve sustainable agricultural development in the future, we discussed issues such as climate change, limits to growth, new agricultural restructuring and rural restructuring, and comprehensive agricultural policy.
Furthermore, we are discussing the issue of elevating and defining sustainable agricultural development and the public and diverse functions of agriculture as constitutional values.

The income gap between urban and rural areas is widening, and rural areas are facing the threat of extinction due to aging and hollowing out.
The climate crisis, food security, and environmental destruction have become pressing issues of our time that can no longer be postponed.
Nevertheless, the government's agricultural policy still only calls for 'growth' and 'exports.'
This book poses fundamental questions to that old paradigm.

The author asserts that agriculture cannot be reduced to mere industry or economic logic.
Agriculture deals with nature and life, provides a stable supply of safe food for all citizens, and performs a public service role in protecting the environment and ecosystem.
Agriculture must now be redefined not as a means of making money, but as a public good that supports the sustainability of future society.

The book is divided into four parts, covering the multifunctionality and public value of agriculture, the necessity of direct payment systems and international comparisons, and a blueprint for sustainable agriculture and agricultural policy amid the climate crisis.
Rather than remaining a simple critique, it simultaneously contains academic depth and realistic alternatives in that it specifically seeks a new agricultural policy paradigm that is in line with the spirit of the Basic Agricultural Law.

Agriculture may be a small industry today, accounting for only 1% of GDP, but it determines the future of the nation and humanity as the foundation for a sustainable society.
This book forces us to face that uncomfortable truth and suggests a path we must choose before it's too late.
This is a must-read for anyone working in agriculture and agricultural policy, as well as anyone interested in environmental, political, and economic issues.