MAFRA’s 2027 Budget at 22.2215 Trillion Won… 10.4% Increase, ‘Largest Since 2000’

The budget of the Ministry of Agriculture, Food and Rural Affairs has increased from 2024 18 trillion 3392 billion won, 2025 18 trillion 7416 billion won, 2026 20 trillion 1362 billion won. The annual increase was 2025 4024 billion won, 2026 1 trillion 3946 billion won. 2027 government budget proposal sharply departs from this trend. It is 22 trillion 2215 billion won, up 2 trillion 853 billion won(10.4%) from the previous year, making both the amount and rate of increase the largest since 2000. The previous highest growth rate was 2002 9.4%, and the previous largest increase was 2026 1 trillion 3946 billion won.

The source of the funding was the Special Tax for Rural Development. Special Rural Tax revenue rose from a cumulative 2025 July total of 4 trillion 6376 billion won to a cumulative 2026 July total of 12 trillion 9876 billion won, an increase of 8 trillion 3500 billion won(180.1%) . MAFRA allocated this fiscal room to expanding existing core projects and to new projects.

There is also debt settlement not included in the budget proposal. About 3 trillion 1000 billion won in debt accumulated by the Farmland Management·Agricultural Product Price Stabilization·FTA·Livestock Development 4 funds will be repaid in a lump sum in 2027. Including this, MAFRA’s 2027 budget scale becomes 25 trillion 3081 billion won, up 25.7%(5 trillion 1719 billion won) from the previous year. 2026 As of August, the balance of deposits borrowed from the Public Capital Management Fund by these funds stood at around 3 trillion 1000 billion won, and the annual interest burden alone was estimated at around 1200 billion won.

By type of expenditure, discretionary spending increased from 16 trillion 524 billion won to 18 trillion 289 billion won, up 12.3% . Rigid budgets, combining personnel expenses and mandatory spending, increased from 4 trillion 838 billion won to 4 trillion 1926 billion won, up 2.7% . New projects total 40 projects worth 1 trillion 7551 billion won(20 subprojects worth 8294 billion won·20 detailed projects worth 9257 billion won); compared with the 2026 main budget of 53 projects worth 5305 billion won, the number of projects fell by 13 while the budget expanded 3.3 times.

Era of 3 trillion won in direct payments…Price stabilization program introduced for the first time with 91 billion won
The public-interest direct payment budget will increase from 2 trillion 9703 billion won to 3 trillion 615 billion won, entering the 3 trillion won range. For basic direct payments, the payment rate for fields in non-promoted areas will be raised by up to 25% from 1.38 million to 1.50 million won per ha to 1.70 million to 1.87 million won, bringing it in line with the support level for paddies. Strategic crop direct payments will increase from 4196 billion won to 4568 billion won, and green manure, which has a practical fallowing effect, will be newly introduced on a scale of 3000ha(ha at 1.5 million won) . Eco-friendly agriculture direct payments will rise from 407 billion won to 641 billion won, and animal-welfare livestock direct payments will be piloted for laying hens·pig farming at a scale of 34 billion won.

The agricultural product price stabilization program, which compensates all or part of the difference when the average price of major agricultural products falls below the reference price, was included for the first time at 91 billion won(new). The price stabilization program was classified as mandatory spending.

In the disaster area, support for agricultural disaster insurance will increase from 8871 billion won to 9568 billion won, and quasi-crop insurance will be newly established at 77 billion won for 4 product groups for which insurance operation is difficult. The coverage level of farmers’ safety disaster insurance will be raised to the level of industrial accident insurance, expanding from 956 billion won to 1228 billion won. The budget for improving pumping station facilities to respond to drought increased more than 10-fold, from 246 billion won to 2509 billion won.

Joint farming corporations from 6 sites→36 sites, essential agricultural materials support system newly established
The number of joint farming corporations will be increased from a cumulative 6 sites to 36 sites, and support for building facilities·equipment will expand from 26 billion won to 228 billion won. In addition, low-interest loans(new·504 billion won)) will support operating·investment funds.

2027 In line with the implementation of the Essential Agricultural Materials Act in December, 12 billion won(new) has been allocated to build a support system that constantly collects·analyzes price·supply and demand information. For research·demonstration to design the appropriate scale·operation method of public stockpiling of inorganic fertilizer, 10 billion won(new), and 11 billion won(new) to create 3300ha of demonstration districts for improving the fertilizer use system were reflected. The scale of loans for purchasing fertilizer raw materials will increase from 2000 billion won to 5000 billion won.

A city·county integrated agricultural machinery rental office will be newly operated at a scale of 1 site·12 billion won so that farmers can jointly use expensive·large agricultural machinery such as tractors that individual farms find difficult to procure.

Rural basic income to 35 counties…national funding ratio 50%
The budget for the rural basic income pilot project has increased sharply to 1 trillion 1658 billion won. The target will expand from 10 counties in the 2026 main budget and 17 counties including the supplementary budget to 35 counties in 2027. This is about half of the 69 counties designated as population-decline areas. Residents in target areas will receive 150,000 won per month in local-love gift certificates. The national subsidy rate will rise from 40% to 50%, while the burdens on metropolitan·basic local governments will each fall from 30% to 25%.

For the Rural Coexistence Cooperation Fund, which has mainly been created through private contributions, government contributions of 2000 billion won were reflected for the first time. Rural-type transportation services will increase from 290 billion won to 724 billion won to spread an AI -based demand-responsive transportation model to 82 counties. The farmland pension will expand from 2766 billion won to 3444 billion won.
 

3 funds integrated to establish the ‘(tentatively named)Agricultural Development Fund’ 
MAFRA will establish the ‘(tentatively named)Agricultural Development Fund’ by integrating three funds—the Farmland Management Fund·Agricultural Product Price Stabilization Fund·FTA Fund 3—after legislation is enacted within the year. Among the 7 funds operated by MAFRA, funds whose purposes·targets are limited or for which integration has no practical benefit will remain as they are.

The integrated fund will secure transfers from the Special Account for Rural Structural Improvement as a new source of revenue, in addition to existing resources such as farmland conservation charges, TRQ importer charges. Transfers from the special rural account will increase from the 2026 main budget of 7040 billion won(revised 8128 billion won) to the 2027 proposal of 4 trillion 7819 billion won. At the time of integration, past debts will be settled in a lump sum,, 2027 and expected deficits will be covered by transfers of surplus funds from the special rural account. MAFRA explained that it will operate the fund directly, while entrusting fund management to the Korea Rural Community Corporation·aT·the Seed and Variety Service and others, and that it will be operated as a single account for substantive integration rather than a merely formal one.

Based on the 2027 budget proposal, the integrated fund will amount to 8 trillion 8332 billion won, up 38.9% from the 2026 main budget of 6 trillion 3580 billion won. Total expenditure will be 6 trillion 2851 billion won(14.6% increase) . Major expenditures include customized farmland support of 2 trillion 3057 billion won, comprehensive funds for production-area distribution of 6179 billion won, comprehensive agricultural development funds of 2164 billion won(net increase), and a contribution of 2000 billion won(net increase) to the Korea Commission for Corporate Partnership in Agriculture and Fisheries between large·small and medium-sized enterprises.

The Livestock Development Fund was excluded from integration. 2027 Its operating scale will be 2 trillion 7766 billion won, up 147.6% from 2026(1 trillion 1215 billion won) , of which 1 trillion 5377 billion won is government internal expenditure, including repayment of Public Capital Management Fund principal(1 trillion 5138 billion won)·interest(239 billion won) .

Agricultural food vouchers to 180,000 households…push to establish Animal Welfare Promotion Agency
Agricultural food vouchers will increase from 740 billion won to 866 billion won, expanding the target from 161,000 households to 180,000 households, raising the monthly unit price for single-person households from 40,000 won to 50,000 won, and adding seafood to eligible support items. The university student ‘1,000-won breakfast’ program will increase from 111 billion won to 174 billion won, expanding meals from 5.4 million to 5.7 million and raising the national support unit price from 2000 won to 3000 won. Support for eco-friendly agricultural products for pregnant women will increase from 158 billion won to 314 billion won, with the support period extended from 6 months to 12 months.

In the animal welfare field, ‘Animal Welfare Promotion Agency’ establishment efforts were allocated 10 billion won(new), ‘(tentatively named)Integrated Animal Medical Information Management System’ construction was allocated 39 billion won(new). 2027 The remaining 316 billion won needed to implement the end of dog meat consumption was also reflected.