chang-gil kim - agnet.org · chang-gil kim . korea rural economic institute, seoul, korea . e-mail:...

International Training Course on Smart Use of Fertilizers toImprove Crop Production and Soil Conservation

CHANG-GIL KIM

Korea Rural Economic Institute 117-3 Hoegi-Ro Dongdaemoon-ku

Seoul 130-710, Korea Ph: 82-2-3299-4265 FAX: 82-2-965-6950

E-mail: [email protected]

EDUCATION: Ph.D. IN AGRICULTURAL ECONOMICS Aug. 1995- Oklahoma State University, USA Dec. 1997 Major field: Resource-Environmental Economics and Econometrics Dissertation: An Integrated Decision Model for Evaluating Alternative Swine Waste Management Systems under Environmental Constraints M.S. IN AGRICULTURAL ECONOMICS Aug. 1992- University of Illinois at Urbana-Champaign, USA Oct. 1995 M.A. IN ECONOMICS Mar. 1983- Sung Kyun Kwan University, Seoul, Korea Feb. 1985 Thesis: "An Economic Analysis on the Potentiality of Cattle Production in Korea." B.Sc. IN AGRICULTURE Mar. 1979- Sung Kyun Kwan University, Seoul, Korea Feb. 1983 EXPERIENCES Korea Rural Economic Institute, Seoul, Korea Jan. 1998- Research Director (Current Position) Present * Dept of Natural Resources and Environment Research * Conducted a project on green growth strategies in agriculture * Conducted a project on developing strategies for climate change

In agriculture * Conducted a project on analyzing polluter-

pays-principle for developing sustainable agriculture in Korea * Conducted a project on developing policy

instruments for environmentally- friendly agriculture Oklahoma State University, Stillwater, USA Oct. 1995-

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mailto:[email protected]


Research Associate Dec. 1997 * Analyzed economic efficiency and effectiveness of livestock waste management systems * Assisted a project on economic analysis of U.S. swine-pork industry

University of Illinois at Urbana-Champaign Jan. 1994- Research Assistant Aug. 1995

* Assisted a project on synthetic fuels: contingent valuation of quality-differentiated factors of production"

* Assisted a project on the environmental program evaluation PROFESSIONAL and GOVERNMENTAL ACTIVITIES Policy Evaluation Committee Member, Prime Mar. 2012-

Minister’s Office Present Chair, Joint Working Party, Committee on Nov. 2013 Agriculture and the Environment, OECD Dec. 2015 Vice-Chair, Joint Working Party, Committee on Nov. 2007-

Agriculture and the Environment, OECD Oct. 2013 Expert Committee Member, Presidential Commission Jan. 2009- on Green Growth Present Member, Editorial Committee, Korean Journal of Jan. 2002- Agricultural Economics Present Executive Board Member, Korean Association of Jan. 2004- Livestock Management Present Executive Board Member, Korea Environmental Feb. 2006- Economics Association Present

Executive Board Member, Korea Organic Feb. 2007- Agriculture Association Present Executive Board Member, Korea Agricultural Feb. 2009- Economics Association Present

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PUBLICATIONS

Kim, Chang-Gil and Song Soo Lim. “An Evaluation of the Environmentally Friendly Direct Payment Program in Korea. Journal of International Economic Studies, No. 29(March 2015): 3-22. Kim, Chang-Gil and Hak-Kyun Jeong. “Factors for Dissemination Intention of Nutrient Management Projects Based on Soil Testing in Korea. Journal of the Environment-Friendly Agricultural Research, Vol. 16, Number1-2(December 2014): 71-90. Kim, Chang-Gil and Tae-Hoon Kim. “Analysis of Carbon Productivity in Korea Agriculture”. Korean Journal of Agricultural Economics, Vol. 55-1(March 2014):1-27. Kim, Chang-Gil, et al. Establishment of Sustainable Agriculture System in Korea. Research Report No. 732. Korea Rural Economic Institute. 2014. Kim, Chang-Gil. et al., Impact and Countermeasures of Climate Change on Food Supply. Research Report R663. Korea Rural Economic Institute. 2013. Kim, Chang-Gil and Ji-Hoon Jeong. “Conversion Strategy for Science and Agricultural Meteorology Using Climate Change Scenario.” Journal of Science and Technology Policy, Vol. 6-2(December 2013): 59-76. Kim, Chang-Gil and Mun Su Lee. “Comparison of Analytical Models of Climate Change Impacts in Agriculture. Journal of the Environment-Friendly Agricultural Research. Vol. 15, No.2(December 2013): 67-91. Jeong, Hak-Kyun, Chang-Gil Kim and Dong-Hyun Moon. “Impacts of Abnormal Weather Factors on Rice Production. Climate Change Researc, Vol. 4-4(December 2013): 317-330. Kim, Chang-Gil. “Food Security under Climate Change.” Review of Rural and Environment, Vol.119(June 2013): 24-37. Kim, Chang-Gil and Dong-Hyun Moon. “Policy Priority of Green Growth in Agriculture and Rural Sectors Using the Analytic Hierarchy Process.” Journal of Rural Development, 353-5(December 2012): 45-64. Kim, Chang-Gil and Hak-Kyun Jeong. "Eco-Efficiency Analysis of Organic Agriculture in Korea." Journal of Organic Agriculture, Vol. 19-5(December 2011): 87-95. Mendelsohn, R., E. Massetti and Chang-Gil Kim. "The Impact of Climate Change on US Agriculture." Journal of Rural Development, 34-2(June, 2011): 19-43.

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Moon Wandki, Won W, Koo and Chang-Gil Kim. "New Global Governance for Agriculture, Climate Change, and Food Security." Journal of Rural Development, 34-2(June, 2011): 45-73. Kim, Chang-Gil and Hak-Kyun Jeong. “Weather Impacts on Rice Production in Korea.” Korean Journal of Agricultural Management and Policy, Vol. 37-4(December 2010): 621-642. Kim, Chang-Gil. Strategies of the Agriculture Sector in Korea for the Post-Kyoto Regime. SEARCA Agriculture & Development Discussion Paper Series No. 2009-4, December 2010. Lim, Song-Soo and Chang-Gil Kim. “Measuring Agricultural Landscape Indicators for Policy Application.” Journal of Rural Development, 33-2(June 2010): 1-27.: Kim, Chang-Gil. “Countermeasures for post-Kyoto Regime in Korean Agricultural Sector (Korean).” Korean Journal of Agricultural Management and Policy.” Volume 37, No. 2(June 2010): 134-164. Kim, Chang-Gil. “Impacts of Climate Change on Agriculture Economy in Korea.” Meteorological Technology and Policy, 2-3(Sept. 2009): 30-42. Kim, Chang-Gil and Sang-Min Lee. “Economic Impact Assessment of Climate Change on Agriculture in Korea (Korean).” Korean Journal of Agricultural Economics, Vol. 50-2(June 2009):1-25. Kim, Chang-Gil, Sang-Gun Lee and Tae-Young Kim. “Efficiency Analysis of Organic Farm Management.” Korean Journal of Organic Agriculture, 17-1(Mar. 2009): 19-33. Kim, Chang-Gil and Sang-Gun Lee. “Development Planning for Regional Environment-Friendly Agriculture: Case of Jinan-Gunn in Jeollabuk-do.” Journal of Rural Development, 32-1(Mar. 2009): 63-87.

Current Ongoing Research Activities Strategies for Establishing Sustainable Agriculture System in Korea Modelling Impacts of Climate Change in Agricultural Sector Adaptation Policy Frameworks for Climate Change in Korean Agriculture Establishing Regional-Based Maximum Nutrients Loading System An Economic Analysis of Organic Agriculture

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PROMOTION OF ENVIRONMENTALLY-FRIENDLY AGRICULTURE IN KOREA

Chang-Gil Kim Korea Rural Economic Institute, Seoul, Korea

e-mail: [email protected]

ABSTRACT

As environmental problems, such as the pollution of water quality and soil deterioration, emerged as social issues in Korea pursuant to the intensive high input-high output agricultural production activities, the fostering of environmentally-friendly agriculture (EFA), which pursues a harmony between agriculture and the environment, was highlighted as a core task in the agricultural sector. This paper provides a review on EFA and agri-environmental resources management in Korea. First, the agri-environmental index, which diagnoses the state of the environment in the agricultural sector, is reviewed and then a diagnosis is discussed regarding the environmental load of the farmlands in Korea that was done using a nutrient balance indicator. Second, eco-friendly agriculture in regards to the status of production and distribution of eco-friendly agricultural products and the estimates and prospect of market size is reviewed. Third, the situation of agri-environmental resources management actually utilized in Korea and pertinent future tasks are suggested. Finally, our conclusions are presented. Keywords: Environmentally-friendly agriculture, Environmental Load, Agri-Environmental Indicators, Nutrient Balance Indicators, Direct Payment System, Agri-Environmental Management

INTRODUCTION

Agriculture can play the negative role of being a potential environmental pollution source depending on the degree of influence agricultural production activities have on the environmental load, or the positive role of being responsible for environmental preservation. Agriculture is an industry which uses and manages natural resources, and the influence of agriculture can be either positive or negative to the environment depending on the kind of agricultural method applied and how agri-environmental resources are managed. Korea has implemented a policy of increasing food production as its core agricultural policy in order to support its large population on limited lands and to increase the farm household income. This policy of increasing food production of Korea has increased the environmental load in the following three ways: First, the intensive 'high input-high output' agricultural method is diffused and therefore the environmental load caused by these agricultural production activities has continuously increased. That is to say, the agricultural environment, i.e. the pollution of the soil and the water quality, has deteriorated as a result of the excessive use of chemical fertilizers and pesticides employed for the enhancement of productivity. Second, the generation of livestock manure has increased due to intensive and specialized livestock production which relies on large quantities of imported feeds and is separated from cultivation and sowing; the inappropriate disposal of livestock manure has increased environmental pollution. Third, the environmental load in the agricultural food sector is increasing due to the demand for the supply of agricultural products throughout the year, of the increased energy use in food processing, and the increase in waste.

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In the 1990's, as environmental problems, such as the pollution of water quality and soil deterioration, emerged as social issues in Korea pursuant to the intensive high input-high output agricultural production activities, the fostering of environmentally-friendly agriculture (EFA), which pursues a harmony between agriculture and the environment, was highlighted as a core task in the agricultural sector. In order to handle the environmental problems of the full scale agricultural ecology system at the government level, the government prepared the systematic foundations for the development of environmentally-friendly (or eco-friendly) agriculture. These preparations included such things as the establishment of the Agricultural, Fisheries and Environmental Policy toward 21C as a blueprint for the development of eco-friendly agriculture in 1996, the enactment of the Environmentally-friendly Agriculture Promotion Act in 1997, and the introduction of the Direct Payment System for Eco-Friendly Agriculture in 1999 starting with the newly established 'Department of Sustainable Agriculture' in the organization of the Ministry of Food, Agriculture, Forestry and Fisheries in December 1994. Since then, the government has been establishing and implementing the '5-year Plan for Fostering Eco-friendly Agriculture' every 5 years starting from 2001 (Kim, Oh and Kim, 2003). 'Eco-friendly agriculture' in Korea is defined as sustainable agriculture which pursues harmony between agriculture and the environment and produces safe agricultural and livestock products all the while maintaining and preserving the agricultural ecology system through the minimal or non-use of agro-chemical materials such as synthetic pesticides, chemical fertilizers, anti-biotic and anti-microbial agents, and the reutilization of the by-products of agricultural and livestock products (Article 2 of the Environmentally-friendly Agriculture Promotion Act). That is to say, an environmentally-friendly agri-environment utilizes agriculture which simultaneously pursues the securing of the economy and safety of agricultural products and the preservation of the ecological system.

DIAGOSIS OF THE ENVIRONMENTAL STATE IN AGRICULTURAL SECTOR Agri-Environmental Indicator for the Environmental State Diagnosis Agri-Environmental Indicators (AEIs) are utilized for the diagnosis of the environmental state of the agricultural field. Agri-Environmental Indicators are values in which the representative values that can best explain the reality among the environmental factors for an agricultural ecology system are calculated based on a certain standard (see Table 1). The indicators are metrical values which help explain how environmental factors are changing depending on the regional characteristics and time. The AEI ranges can be largely divided into space and time domains. The spatial range is divided into farmland, farm, watershed, eco-zone, region, and nation, whereas the time range is divided into short, mid, and long-term depending on the environmental influence (Kim, et al., 2010a).

The representative agri-environmental indicators which identify the agri-environmental state are the nutrient

balance indicators. Nutrient balance indicators refer to the value of the remaining nutrient quantity after taking out the quantity of agricultural products produced from the nutrient quantity using chemical fertilizer or livestock manure (nitrogen and phosphorus) input to farmlands. That is to say, it is the value calculated by deducting the output quantity from nutrient input per unit area, as shown in Figure 1. The input nutrients are chemical fertilizers, livestock manure, organic fertilizers, biologically fixed nitrogen, and nutrient input rain water to atmosphere. The output nutrients are the harvested crops and nutrients such as nitrogen and phosphorus in plants. The value of the nutrient balance indicators shows the deterioration of soil fertility due to insufficient nutrients and the degree of environmental pollution which causes pollution to the soil, water and atmosphere due to excessive nutrients.

Nutrient balance indicators can be calculated for national, regional, town, and farming household levels

depending on the target area. The value of an average nutrient indicator from a certain farmland in a national unit is an important indicator which represents the spatial variation by country. The nutrient balance indicators

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concerning regional units are utilized for the development of agri-environmental policy by region. A nutrient balance indicator is an indicator which evaluates the degree of potential environmental loading and is not an indicator which represents the degree of direct environmental deterioration, such as actual water quality pollution or the depletion of agri-environmental resources. This indicator provides, however, general information useful in environmental evaluation, such as the development of a model to evaluate the influence of agriculture and agri-environmental policy has on the environment.

For convenience's sake, patterns of agri-environmental indicators can be grouped together using land, soil,

water, and biodiversity indicators as indicators related to the stock of natural resources influenced by agriculture; the available indicators related to agriculture are environmental load, pertinent nutrient balance, atmosphere and climate change indicators, and farm management.

Diagnosis of the Environmental Load in Agricultural Sector We can diagnose the degree of environmental load in the agricultural ecology system in Korea using the nutrient balance indicators presented above. Agriculture can play the negative role of being a potential environmental pollution source depending on the degree of influence agricultural production activities have on the environmental load, or the positive role of being responsible for environmental preservation. In the case that agri-environmental resources are properly managed the nutrient balance indicators will be in good shape, as agricultural production activities are carried out within the range of the environmental capacity. However, in the case where agro-chemical materials are excessively input for the increase of productivity or where the treatment of livestock manure is inappropriate, the nutrient balance indicators will show an excessive level which represents the deterioration of the agricultural ecological system. An excessive level of nutrient balance indicators can also be interpreted as the deterioration of the agricultural ecological environment, such as the degradation of the water quality in ground and surface water.

The result of analyzing the nutrient balance of the arable land as of 2013 shows that the nutrients (nitrogen ingredient basis) put into the crop cultivation area of 1,730 kha are made up of about 350 ktons of chemical fertilizers and about 190 ktons of livestock manure. Of this, the amount absorbed through crop cultivation is about 310 ktons and the remaining 230 ktons can be considered as excess nutrients, the entropy which pollutes the groundwater and/or surface waters (see Figure 1). In terms of mass balance of the agro-ecosystem, about 31,330 ktons of total 35,320 ktons of manure generated from the livestock sector are sprayed on the arable lands in the form of compost or liquid fertilizer (Kim, et al., 2015).

Before the 1990's, Korea implemented intensive high input-high output agriculture techniques in order to

achieve food self-sufficiency and the increase of income for farming households. Thanks to the eco-friendly agriculture fostering policy instated in the 1990's, the quantities of chemical fertilizer use showed an overall decreasing trend due to the expanded use of low density compound fertilizer, tailored fertilizer (or bulk blending fertilizer), and livestock manure fertilizer. Based on the excess nutrients, the following trend of changes in the nutrient balance was identified: the excess nutrients per ha (nutrient balance) were nitrogen 130kg and phosphorous 52kg in 2001, which were reduced respectively to 98.7kg and 34.4kg in 2001 and then increased again to nitrogen 128.5kg and phosphorous 46.7kg in 2004 due to the increase in livestock manure generation and the increased usage of chemical fertilizers. Afterwards, due to the reduction in chemical fertilizer consumption, they were reduced to nitrogen 79.4kg and phosphorous 27.8kg in 2009. Accordingly the rates of excess nutrients per ha increased to 105.8% for nitrogen and 78.6% for phosphorous (average 87.6%) in 2004. In 2009, the lowest values of 66.0% and 46.4% respectively were recorded. Again, due to the recent increase in the number of livestock heads bred, the amount of livestock manure supply was increased to nitrogen 68.5kg and phosphorous 38.4kg in 2013, recording respective increases of 9.0kg and 5.3kg from 2009. As a result,

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despite the reduced usage of chemical fertilizers, the rates of excess nutrients increased to 84.1% for nitrogen and 48.6% for phosphorous in 2013, recording respective increases of 18.1%p and 2.2%p from 2009(see Table 2).

The degree of excess nutrient input in Korea is clearly shown in the OECD's table of nutrient balance

indicators. In accordance with the comprehensive OECD Report on agricultural nutrient indicators, in the case of nitrogen balance indicators (N kg/ha) for the 3 year average from 2007-2010, Korea is positioned at the top level, in the order of Korea (226.4kg), Netherlands (193.3kg), Japan (180.2kg), and Belgium (117.0kg). This indicates that the environmental load on farmland is very high in our country (OECD, 2014). Accordingly, in order to promote eco-friendly agriculture, it is necessary to determine the proper measures for an effective nutrient management.

The nutrient balance structure of Korea has deteriorated due to the introduction of new high yielding breeds

pursuant to the Green Revolution after the mid-1970's and the excessive use of chemical agricultural materials. However, the structure has shown a decreasing trend since 2005 thanks to the eco-friendly agricultural policies implemented after the mid-1990's and the abolition of government subsidies for chemical fertilizers after 2004. Based on this, it is can be seen that the environmental problems in the Korean agricultural field are gradually improving.

ECO-FRIENDLY AGRICULTURE IMPLEMENTATION STATUS Current Status of Eco-friendly Agricultural Production Eco-friendly agriculture in Korea had been implemented mainly by civil organizations up until the early 1990's. When the eco-friendly agriculture fostering policy was fully implemented in the mid-1990's the number of certified farming households providing eco-friendly agricultural products significantly increased. The land area practicing eco-friendly agriculture was only 2,039ha in 2000, however it increased to 100,046ha in 2014, which represents an annual increase of approximately 35%. The land area practicing eco-friendly agriculture makes up approximately 5.9% of the total farmland area. In regards to the types of certifications issued for eco-friendly agricultural products, in 2000 organic cultivation was 14.5%, pesticide-free cultivation was 43%, low pesticide use was 42.5% whereas in 2014 organic cultivation was 18.3%, pesticide-free cultivation was 66.0%, and low pesticide use was 16.73% (National Agricultural Products Quality Management Service, 2014). This means that in 2014 the proportion of organic cultivation area was relatively decreased but the area of cultivation using no pesticides increased (see Table 3).

In regards to the shipping quantities of eco-friendly agricultural products by item, grains were 470,948 tons,

fruits were 603,021 tons, and vegetables were 1,030,875 tons; the shipping quantity of vegetables had the highest proportion at 43.7% of the total. Out of the total shipping quantity for grains (mainly rice), the certification for organic cultivation was 6.3%, no pesticide use was 34.4%, and low pesticide use was 59.3%; the certification for low pesticide use took up more than a half of the total certified amounts. Out of the total shipping quantity for fruits, the low pesticide certification took up a considerable portion at 86.2%. In the case of vegetables, organic cultivation was 5.2%, no pesticide use was 43.0% and low pesticide use was 51.8%; the cultivation using no and low pesticides had the lion’s share. In the case of special production (mainly mushrooms), out of a total shipping quantity of 154,604 tons, the cultivation with no pesticide use dominated at 90.2%.

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There are various practical agricultural methods which are utilized for the production of on site environmental agricultural products, such as the freshwater snail method, duck method, rice bran method, and microorganism method, all of which are classified based on eco-friendly agricultural materials.

The freshwater snail method is an agricultural method that can reduce the quantity of herbicides used through

biological prevention of weeds in a rice paddy during the rice cultivation period using the folivorous characteristics of freshwater snails. Since freshwater snails do not feed on the weeds at the water’s surface and but only ones underwater, the water supplied to the rice paddy should be as shallow as possible for rice planting so that the rice is not submerged and thus no damage is done to the rice by the freshwater snails. The duck agricultural method is a rice cultivation method which reduces the quantity of pesticides and chemical fertilizers used through the prevention of young weeds and some harmful insects by grazing ducks for a period beginning at 10~15 days after rice planting to the earing season. The method also utilizes the duck excrement as a fertilizer source. The rice bran agricultural method is a rice cultivation method that uses no chemical fertilizer by spraying rice bran onto the rice paddy for the propagation of effective microorganisms and by utilizing the merits of including abscisic acid in the rice bran for its weed germination control effect and sustained fertilizing effect. The microorganism agricultural method is a rice cultivation method using the activities of soil microorganisms whereas the germanium agricultural method refers to the agricultural method which makes the vitality of roots vigorous, improves the soil and helps active propagation of various microorganisms through the promotion of photosynthesis by spraying germanium onto agricultural products, soil, or on leaves. In addition, the rare-earth and barley stone agricultural methods are available for application.

Status of Eco-friendly Agricultural Product Distribution Since eco-friendly agricultural products are collected and distributed using direct trade and specialized distribution companies due to the constraints found in production and consumption, most eco-friendly agricultural products are distributed without going through wholesale markets auctions, differing from general agricultural products (see Figure 3). Especially, since eco-friendly agricultural products are distributed on a small quantity and multiple-product basis and the quality in terms of appearance is usually inferior to general agricultural products, off-market distribution in the form of direct trade plays an important role in differentiating these markets and products.

Recently, since the market size for eco-friendly agricultural products has expanded due to the increase in production as well as demand, diversified distribution channels have come into existence, and production and distribution have come to closely cooperate in regards to the differentiation of eco-friendly agricultural products, which has resulted in the formation of diversified sales networks. Generally, there are three types of trade for eco-friendly agricultural products: direct trade between producers and consumers, trade between producer (NACF and other eco-friendly agriculture organizations) and consumer organizations (i.e. Hansalim and Saenghyup), and trade with consumers through producers i.e. specialized distribution company - department stores or specialized sales stores.

The composition ratios of certified eco-friendly agricultural products by destination show that the proportion

of direct trade is estimated to be approximately 10~15%, the trade through producers' organizations and large scale marts is approximately 50~55%, the proportion of trade through consumer organizations is approximately 15~20%, and the trade through specialized shops and the internet is approximately 20~25%. Recently, as the quantity of the trade of eco-friendly agricultural products has expanded, the proportion of direct trade and distributions connected with consumer organizations is decreasing whereas the proportion going to large scale marts and specialized distribution companies has an increasing trend (Kim, et al., 2010b). .

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Lately, the distribution of eco-friendly agricultural products is diffusing to general distribution companies such as large scale discount stores and supermarkets, and it is expanding to eco-friendly specialized shops in the form of non-chain stores and online shopping malls. On the other hand, large scale distribution companies are developing their own brands (PB), and the competition between department stores, discount stores and specialized shops is getting fiercer. The number of distribution companies, such as NACF shops, large scale discount stores, and department stores which handle eco-friendly agricultural products, has reached approximately more than 2,000, and recently opened specialized shops for eco-friendly agricultural products are significantly increasing. The Size and Projections for the Eco-friendly Agricultural Products Market There is a great deal of difficulty in identifying an accurate trade volume for eco-friendly agricultural products, as there is a big difference depending on the item and certification stage. A brief estimation regarding the size of the eco-friendly agricultural products market by applying hypothetical conditions, such as shipping quantity by certification stage of eco-friendly agricultural products, distribution ratio and distribution margin was done by Korea Rural Economic Institute (Kim Chang-Gil, et al., 2010b).

As of 2010, the distribution size of the eco-friendly agricultural products market was estimated to be USD

32.1 billion, which was an increase of approximately 1.6% over the previous year, being approximately 11% of the total agricultural products market.1 Out of this total, grains were estimated to be USD 17.2 billion (including USD 11.8 billion in rice), vegetables USD 926 million, fruits USD 769 million, potatoes USD 110 million, and special products, in which mushrooms made up the majority, USD 398 million.

The future distribution size of the eco-friendly agricultural products market will change significantly

depending on the changes in consumer demand for eco-friendly agricultural products and the speed of the development of eco-friendly agriculture. If we assume that the current increasing consumption trend will gradually decrease, the volume of eco-friendly agricultural products trade in 2010 is estimated to be USD 33.8 billion representing an approximately 7% increase over the previous year, USD 36.7 billion in 2011 representing a 8.7% increase over the previous year, USD 45.0 billion in 2014 representing a 7.3% increase, and USD 49.2 billion representing a 9.2% increase in 2015. If we assume that the certification system for low pesticide use will be completely abolished in 2016 and thereby encouraging some farming households to convert their cultivation method to the no pesticide or an organic cultivation method (for the conversion rate of low pesticides cultivation farming households, the result of a telephone survey by the Eco-friendly Agriculture Department of the Ministry of Food, Agriculture, Forestry and Fisheries has been utilized for the basic data), the distribution volume of the eco-friendly agricultural products market for 2016 was estimated to be USD 43.0 billion representing a 12.5% decrease from 2015. After 2016, as the farming households employing low pesticide cultivation methods convert to the no pesticides organic methods, the distribution market size will start to gradually restore itself and in 2017 the size is estimated to be USD 47.8 billion representing an 11.1% increase over the previous year, USD 52.5 billion in 2018 representing a 9.8% increase over the previous year, USD 57.0 billion in 2019 representing an 8.6% increase over the previous year, and USD 61.4 billion in 2020 representing a 7.6% increase over the previous year which will make up 19.7% of the total agricultural products market at that time.

1 The currency rate of Korean Won (KRW) is applied to 1 USD = KRW 1,080 (April 27, 2015).

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Policies for Promoting Eco-friendly Agriculture Vision for the Eco-friendly Agriculture Promoting

We can set the "Enhancement of the quality of life of people (including the present and future generations) through harmony of agriculture and environment" as the vision for the eco-friendly agriculture fostering policy for Green Growth. That is to say, through the conversion to the eco-friendly agriculture system we can maintain a clean and beautiful land by managing and preserving the national land at a low cost and have agriculture take on the aspects of a bio-industry that manages the national land and supplies safe foods. We can set tasks, such as Greenhouse Gas mitigation through the eco-friendly management of agri-environmental resources, the preservation of the ecological system, the securing of the safety of agricultural products, and the maintenance of profitability of farming households, as objectives for the establishment of pertinent system (see Figure 4). In order to accomplish these objectives, an appropriate combination of policies, including government support, environmental controls, and compensation system, needs to be done; the government has to continue to implement them based on an active policy based will.

Policy Based Projects by Sector for Fostering Eco-friendly Agriculture2 The 5-year Eco-friendly Agriculture Fostering Plan Pursuant to the eco-friendly agriculture Fostering Act, the government has been setting policy objectives and the basic plan for the development of eco-friendly agriculture every 5 years and then implementing the plan. The first 5-year plan for fostering eco-friendly agriculture was established and implemented for the period of 2001~2005. The second 5-year plan was established for the period of 2006~2010; many programs were implemented for the respective sectors, such as the production · distribution · consumption · system for eco-friendly agriculture. The policy objective set for this second 5-year plan was to reduce the quantity of pesticide and chemical fertilizer usage by 30% of the 5 years usage average from the period of 1999~2003 and to expand the proportion of the production of eco-friendly agricultural products to be 10% of total agricultural production.

Five items were presented for the basic scope of the second 5-year fostering plan: the settling down of the

agricultural resource circulation type through the harmonious joining of agriculture and the environment, the enhancement of the quality of life through the supply of high quality safe agricultural foods, the enhancement of the competitiveness of domestic agricultural products through eco-friendly agriculture, the increase in revenue and maintenance of profitability for farming households practicing eco-friendly agriculture, and the preservation of the national land environment through eco-friendly management of agri-environmental resources.

The third 5-year Plan for Eco-friendly Agri-environmental Promotion (2011~2015) set its vision to consist of

the 'Materialization of eco-friendly green industry where people and nature are together'. In order to achieve this the government plans to implement seven strategic tasks: the creation of a production base, the activation of distribution and consumption, the activation of the processing and agricultural material industries, the cultivation of specialized manpower, the fostering of the eco-friendly livestock industry, the fostering of forestry, and the establishment of an agri-environmental resource management system. For the sound fostering of the eco-friendly agriculture, above all remarkable changes in the perception of environmental issues in the agricultural sector are required.

2 Major contents of the policy programs for promoting environmentally friendly agriculture was drawn from the policy material prepared by the Department of Environmentally Friendly Agriculture in the Ministry of Agriculture, Food and Rural Affairs (Ministry for Food, Agriculture, Forestry and Fisheries, 2011 and Ministry of Agriculture, Food and Rural Affairs, 2013).

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The core tasks for the conversion from conventional agriculture to the eco-friendly agriculture system are related to the safe production of agricultural products while mitigating greenhouse gasses, ensuring that the agricultural activities do not damage natural resources, habitats, biodiversity, and the landscape, all the while maintaining a sustained profitability. Considering these requirements, five basic directions for the establishment of the conversion strategy regarding the eco-friendly agriculture system have been set.

First, the agricultural system of resources circulation protocol for regional units based on the "Reduced ↔

Recycled ↔ Reuse" flow needs to be settled upon. Second, the 'Maximum system' needs to be converted to the 'Optimum system' considering the environmental

capacity from the aspect of agricultural production. That is to say, the system needs to be converted to an optimum production system considering the agricultural environment conditions in the regional unit (in land lot units) rather than concentrating on the enhancement of productivity through maximum production.

Third, the development of policy programs based upon scientific analysis regarding agri-environmental

resources and their implementation needs to be done. Fourth, an appropriate combination of policy based supports, environmental controls, and the means of

compensation for these controls needs to be done for the conversion to the eco-friendly agriculture system. Fifth, the proper allocation of roles between the "Farmers-Consumers-Researchers-Policymakers" who are the

subjects related to the implementation of eco-friendly agriculture needs to be made. The Eco-friendly Agriculture Base Establishment Project The eco-friendly agriculture base establishment project is divided into the district creation project and the wide area complex creation project.

The eco-friendly agriculture district creation project sets the implementation of eco-friendly agriculture bases

in diversified forms, such as water sources or the region where the eco-friendly agriculture centers are required as the project's policy objective. The project supports the farmers or producer organizations who want to create a district for eco-friendly agriculture in a region (i.e. town). The eligibility for the application is limited to farmlands that have been collectivized for over more than 10ha and regions which have more than 10 farming households who desire to participate in the project. Subsidies for this project will be paid in town units for the purpose of purchasing eco-friendly agriculture material production facilities and equipment, eco-friendly agricultural product distribution facilities and equipment, and eco-friendly agriculture education facilities and equipment for the implementation of eco-friendly agriculture using many farming households. The unit amount for a subsidy is set over the range of USD 185 thousand to UDS 926 thousand per location; the actual subsidy amounts will be different depending on the size and conditions of the project.

The eco-friendly agriculture wide area complex creation project is a project that circulates eco-friendly

agriculture complex resources in wide area units in connection with cultivation and livestock businesses in a city · gun · watershed unit for agri-environmental improvement and the fostering of eco-friendly agriculture. This project was implemented in 2006 with the purpose of expanding the area of eco-friendly agriculture implementation to significant levels by converting small scale · high cost eco-friendly agriculture methods to low cost · high efficiency large scale eco-friendly agriculture methods. This project is a program which supports the costs of eco-friendly agricultural material production facilities, the costs of production · distribution facilities for eco-friendly agricultural and livestock products, and infrastructure, such as cultivation-livestock circulation resources recovery centers and education and tourism facilities. The supported regions for the project are wide areas in which farmlands of more than 600ha can be secured; the project cost per complex is USD 5.6 million ~

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USD 9.3 million depending on the area. Criteria for this support require national government subsidies of 40%, local government subsidies of 40%, and self-funding of 20%. The project period is for three years; the payment schedule for the project costs is 10% in the first year, used for the establishment of the project plan, design, and some arrangements and purchases, 50% for the second year when major equipment needs to be installed, and 40% in the third year to complete the project. The program aims to foster a total of 50 complexes for the period from 2006 to 2013; 25 complexes to date have been selected (three in 2006, six in 2007, nine in 2009 and seven in 2010). Out of these 25 chosen complexes, nine of them have been completed. The evaluation results for the wide area eco-friendly agriculture complex creation project revealed that the project significantly contributed to the diffusion of farming households which implemented eco-friendly agriculture and the activation of distribution in the regional units.

The Direct Payment System for Eco-friendly Agriculture The Direct Payment System for Environmentally Friendly Agriculture is aimed at fulfilling public functions of agriculture such as environmental conservation, and spreading the environmentally friendly agriculture by preserving the difference if the agricultural income is less than the reference income, or the production cost is bigger than the reference cost at an early stage of the environmentally friendly agriculture (the Ministry of Agriculture, Forestry and Fisheries, 2014).3 The system has been carried out since 1999 to induce production of environmentally friendly agricultural products by increasing the number of farmhouses engaged in the environmentally friendly agriculture. In accordance with the Environmentally-Friendly Agriculture Promotion Act, cooperative units or farmers whose produce are certified as environmentally friendly agricultural products are eligible for the direct payment, which is made for five years (5 times in case the farming is discontinued) for organic produce and for three years (3 times in case the farming is discontinued) for no-pesticide and low-pesticide. The direct payment is made differentially depending on the certification level and whether the farmland is either rice paddies or fields, and the land limit of provision is between 0.1 to 5.0 hectares. As of 2015, the unit price for direct payment per hectare for fields is USD 1,111 for organic cultivation, USD 926 for no-pesticide cultivation, and USD 485 for low-pesticide cultivation. And the unit price for direct payment per hectare for rice paddies is USD 1,019 for organic cultivation, USD 620 for no-pesticide cultivation, and USD 340 for low-pesticide cultivation (see Table 4). The Direct Payment for Continuous Organic Production is a subsidy for additional three years for farmland that has received the direct payment for maximum five years in recognition of organic production, and its unit price per hectare is USD 278 for rice paddies and USD 556 for upland. For your reference, the unit price of the fixed direct payment in the Rice Income Direct Payment System is USD 926 per hectare.4 The total amount of the Direct Payment for Environmentally Friendly Agriculture paid was USD 34.8 million in 2013 and USD 24.2 million in 2014, and is expected to be USD 30.5 million in 2015.

The Biological Disease and Harmful Insect Prevention Project The policy objective of the biological disease and harmful insect prevention project is to reduce the usage of pesticides and produce high quality safe agricultural products by converting insect prevention using synthetic pesticides on enclosed horticulture crops to biological insect prevention methods utilizing natural enemies, and thereby satisfy consumer demand for eco-friendly agricultural products, increase revenue, and decrease labor costs for farming households utilizing the project, and protect the health of farmers from pesticide induced

3 Legal grounds for the Direct Payment System for Environmentally Friendly Agriculture are the Special Act on the Implementation of the Agreement Establishing the World Trade Organization (the 2nd clauses in Article 11) and the Enforcement Regulation of the Direct Payment System for Producers of Agricultural products (Article 16-23).

4 The Rice Income Direct Payment System is conceived to stabilize the income of the farmers in preparation of falling rice

prices due to the opening of the market, and to provide incentives to farmers in return for their contribution to the food

self-sufficiency and social benefits of farmland maintained by functions and forms of farmland.

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damage. This project was introduced and implemented in 2005 in order to encourage the conversion of conventional production methods to eco-friendly methods. The main thrust of the program is a model project for insect prevention using natural enemies to convert an area of 50,000ha, which is 50% of the area used for enclosed horticulture cultivation to insect prevention using natural enemies and to provide training for public officials and consultants. The project supports the farmers, farm corporations, and agricultural corporations who are growing the crops eligible for support in greenhouses larger than 3,000 ㎡. The supported crops for the insect prevention project have been expanded to nine crops: strawberries, tomatoes, chilies, bell peppers, paprika, cucumbers, watermelons, grapes, and melons. The support is comprised of national government subsidies of 20%, local government subsidies of 30%, with the remaining 50% being self-funded.

The microorganism project for biological insect prevention was introduced in 2009 in order to reduce

pesticide usage and to convert agricultural facilities to high quality safe agricultural products production systems through the conversion of insect prevention by synthetic pesticides to biological insect prevention using microorganisms. The supported area for the project is 1,000ha and the project cost is USD 389 thousand, which are comprised of a 20% national government subsidy, 30% local government subsidy, with the remaining 50% being self-funded. The supported ten crops are: strawberries, tomatoes, chilies, bell peppers, cucumbers, watermelons, pumpkins, lettuce, and water flavoring parsley, perilla, and cabbage.

Eco-friendly Fertilizer Support Project The eco-friendly fertilizer support project is divided into the organic fertilizer support project and the soil conditioner assistance project.

The policy objective of the organic fertilizer support project is to promote resource recovery through the

recycling of by-products from agriculture, forestry, and the livestock industry and to disseminate eco-friendly resource circulating agriculture by preserving the farmland soil environment and reducing the input of chemical fertilizers. The project supports farmers and farm corporations who use organic fertilizers. The project supports three kinds of organic fertilizers: fixed press cake fertilizer, fixed organic fertilizer, and organic composite fertilizer and two kinds of by-product fertilizer: livestock manure compost and general compost. Support from government subsidies is given on fixed amount basis, USD 1.39 per bag (20kg) of organic fertilizer, USD 1.11 per bag (20kg) for 1st grade, USD 1.02 for 2nd grade, and USD 0.83 for 3rd grade livestock manure compost, and USD 0.93 for 1st grade, USD 0.83 for 2nd grade, and USD 0.65 for 3rd grade general compost. The local government subsidy is USD 0.56 per bag (20kg), and additional support will be given depending on the funds available to local governments.

The policy objective of the soil conditioner assistance project is to improve acidic soil and farmland soil with

a low effective silicic acid content through the input of soil conditioners (i.e. lime and silicic acid) and to create the basis for the implementation of eco-friendly agriculture by maintaining and preserving soil fertility. In the case of Korean soil, the mother rock itself usually possesses acidity, and the heavy reliance on chemical fertilizers in cultivation accelerates soil acidification. Therefore, soil improvement is an important task for the establishment of a sustainable agricultural base. The soil improvement project has been implemented since 1960 based on Article 20 of the Farmland Act (Soil Improvement and Preservation) and Article 24 of the Enforcement Decree of the said Act (Implementation of the Project for Soil Improvement and Preservation). The project supports the farming households which cultivate farmland in all parts of the country; for the project supports rice paddies with an effective silicic acid content of less than 130ppm and fields with volcanic ash. It also supports, in regards to lime, fields with acidity of less than pH 6.5 (including orchards) and farmland with heavy metal pollution. The support is comprised of 80% national government subsidies and 20% local government subsidies.

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Green Manure Crop Seeds Cost Support Project The purpose of the green manure crop seeds cost support project is to increase the organic matter content in soil by cultivating green manure crops in fallow farmland and returning it to the soil in order to promote soil fertility, and to maintain and preserve agri-environmental practices. Green manure crops refer to the plants from which stems and leaves can be used for alternative fertilizer providing a free nitrogen fixing effect. The government mandated the expansion of the organic matter content in farmland to 3.0% by 2013 (the organic matter content in farmland in 2009 was 2.49%). The project supports the farmers and farm corporations who desire to cultivate crops for green manure (Chinese milk vetch, rye, green barley, and hairy vetch) in the fallow farmlands they own; the support is comprised of a 50% national government subsidy and a 50% local government subsidy.

Eco-friendly Agricultural Products Distribution Activation and Consumption Promotion Project In order to promote the distribution and consumption of eco-friendly agricultural products, actions, such as the education of producer and consumer organizations, the expansion of the installation of specialized sales corners for eco-friendly agricultural products, and the expansion of financial support for the direct trade of eco-friendly agricultural products, are taken. In addition, the expansion of the handling of eco-friendly agricultural products at wholesale markets and the establishment of a exclusive logistics center for eco-friendly agricultural products are considered. The exploration of mass demand areas, such as school meals and hospital meals are also considered, and the development of eco-friendly processed foods are implemented as well.

The eco-friendly agricultural products certification system is a system which certifies the safety and quality of agricultural products through an overall inspection using the strict standards of a specialized certification agency for the purpose of fostering eco-friendly agriculture as well as protecting consumers. The criteria for certification incorporate business management, cultivation, packing, water, seeds, cultivation methods, and quality control for agricultural products and to breeding farms, breeding conditions, feed self-sufficiency, livestock origin, feed, nutrition management, animal welfare, disease control, and quality control in the case of livestock products. The eco-friendly agricultural products certification steps are comprised of certification for organic cultivation, no pesticide cultivation, and low pesticide cultivation. In the case of low pesticide certification, new certification was suspended in 2010 and is scheduled to be abolished in 2016. The eco-friendly livestock products certification is comprised of two categories: organic breeding and non-antibiotic breeding. The certification for eco-friendly agricultural products is handled by the National Agricultural Products Quality Management Service, a public and civil certification institution. As of December 2010 there were 70 operating civil certification locations.

The eco-friendly agricultural products direct trade match support project (financing) is being implemented as

a distribution project for eco-friendly agricultural products. The project supports farm corporations and consumer cooperatives which are engaged in the eco-friendly agricultural products direct trade business; e-Commerce business entities are allowed to participate in the project as well. The support is financed at 80% from public funds, with the remaining 20% self-funded. The costs for this project were USD 3.3 million allocated to 61 organizations in 2008, USD 37.0 million to 74 organizations in 2009, and USD 37 million to 75 organizations in 2010. The obligatory direct trade matching amount for this project was mandated to be more than 125% of the support amounts.

The eco-friendly agricultural products consumption place distribution activation project (financing) is a

financing project which supports the specialized stores used for eco-friendly agricultural products to facilitate consumer access to them. The project supports the corporations which operate specialized stores for eco-friendly agricultural products having an annual sales turnover of more than USD 926 thousand, more than 50 producers as members, and serving more than 1,000 consumers. The project cost for 2010 was USD 2.2 million, the government funded 80% with an interest rate of 3% p.a.; the remaining 20% was self-funded. Repayment is

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required in 3 years after a 2 year grace period. The use of this support is limited to money used for the lease of the eco-friendly agricultural products store, the cost associated with a new opening, the purchase costs for display stands, and freezing and cooling facilities.

In 2008 the government implemented the eco-friendly agricultural products certification activation project to

effectively cope with the increasing demand for certifications and to reinforce the education needed for screening members for certification in order to prevent the issuance of poor certifications. The major purpose of this project is to provide support for eco-friendly agricultural products practice fees, support for the cost of education, making public the screening members of the eco-friendly certification institutions, and the costs incurred for the exchange and cooperation between producers and consumers for the credibility enhancement of certified eco-friendly agricultural products. The education and publicity project for the promotion of consumption of eco-friendly agricultural products has been continuously implemented and publicity projects addressing the exchange between urban and rural areas were implemented in order to expand the use of eco-friendly agricultural products for school meals.

Agricultural Water Quality Improvement Project The policy objective of the agricultural water quality improvement project is to establish a clean water supply base and to create a pleasant living environment for rural areas through water quality improvement measures and the disposition of sediments in lakes and marshes in order to improve reservoirs and freshwater lakes which are the sources of agricultural water. The project supports the Korea Rural Community Corporation, with objective of supporting the primarily agricultural reservoirs in which the water quality exceeds the 'somewhat bad' grade from the living environmental standard for lakes and marshes based on the Basic Act for Environmental Policy. In the case of reservoirs which have a great deal of sedimentation and a high level of water quality pollution, the implementation of model projects for sediment disposition is required.

Model projects regarding sediment disposition have been implemented since 2009, and out of the support

fund, water quality improvement project costs can be used for the costs of water quality improvement for agricultural reservoirs (including materials costs) and land purchase compensation costs and incidental facilities expenses (i.e. supervision fees and project management costs) whereas costs for model project for sediment disposition can be used for the costs of dredging and the disposition of sediments (including material costs), land purchase compensation costs, and incidental facilities expenses (i.e. detailed design costs, supervision fees, and project management costs). The support is comprised of 100% government subsidies.

The Livestock Manure Treatment Support Project The policy objective of the livestock manure treatment support project is to foster eco-friendly livestock industries including the prevention of water quality pollution and the preservation of the living environment through resource and energy recovery, such as making compost and liquefied fertilizer from livestock manure, and to apply these things to resource circulating agriculture. The project supports livestock farming households, individual facilities in livestock complexes (including regional NACF's and livestock cooperatives), joint resource recovery facilities, such as the compost and liquefied fertilizer business segments of farming corporations (including regional NACF's and livestock cooperatives), the energy recovery business segment of farming corporations and civil corporations, regions for the restructuring of town settlements (National Hansen's disease town settlements), and liquefied fertilizer distribution centers. Support funds can be used for the installation of energization facilities, such as the facilities for making compost, liquefied fertilizer and bio-gas, purification and discharge facilities, chaff grinders, flatting equipment, incidental machinery, and equipment, such as night-soil transportation tanks and joint compost areas in the case of individual facilities. In the case of common resource recovery facilities, the use of funds is limited to the purchase of facilities and equipment for

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making compost and liquefied fertilizer and for energization; in the case of town settlement restructuring areas, the use of funds is limited to the purchase of the facilities necessary for the treatment of livestock manure. In the case of liquefied fertilizer distribution centers, the use of funds is limited to the purchase of equipment necessary for the collection of liquefied fertilizer, transportation and spraying, such as vacuum cars, liquefied fertilizer spray vehicles and liquefied fertilizer sprayers, and arm roll boxes. The support is comprised of national government subsidies at 30%, local government subsidies at 20%; national government financing at 50% in the case of individual facilities; national government subsidies at 50%, local government subsidy at 30% and government financing at 20% in the case of making compost and liquefied fertilizer using joint resources recovery facilities; and national government subsidies at 30%, local government subsidy at 30%, government financing at 20%, and self-funding at 20% in the case of energization using joint resource recovery facilities. The cost limits for the support of the project are USD 370 thousand for pigs, USD 185 thousand for Korean native cattle, and USD 185 thousand for chickens apportioned by kind of livestock in the case of individual farming households, whereas they are USD 185 thousand for pigs, USD 741 thousand for Korean native cattle and milk cows, and USD 926 thousand for chickens in the case of corporations. The support amounts for joint resource recovery facilities are USD 3.7 million for making compost and liquefied fertilizer and USD 6.5 million for energization.

APPROACHES TO AGRI-ENVIRONMENTAL RESOURCE MANAGEMENT

Utilization and Management of Agri-environmental Information Agri-environmental information refers to the information related to environmental factors, such as soil, water and air, which comprise the agriculture sector. The agri-environmental information system refers to the organic connection of each these components and their composite combination. The agri-environmental information system efficiently compiles, manages and analyzes the diversified data related to agri-environmental resources, takes appropriate measures, such as prevention and warning through the forecasting and analysis of agri-environmental changes, and contributes to the establishment of an effective agri-environmental policy. Based on the agri-environmental indicators developed so far, the agri-environmental resources management systems have been established and operated in the field.

The Soil Information System (SIS) is an Internet portal site in which vast amounts of soil environment

information surveyed, researched, and accumulated by the Rural Development Administration was developed into a database. The Korean Soil Information System (http://soil.rda.go.kr), established in April 2011 through the integration of the existing soil information system and the agri-environmental resources information, addresses the standards used for appropriate placement for cultivation by crop. It considers soil characteristics, crop productivity, and climate conditions (see Figure 5). This site is available for easy access to soil information by the general public, including farmers. The Soil Information System provides information regarding such things as appropriate places for crop cultivation, farmland chemistry, soil characteristics, precision agriculture climagrams, biofacies distribution charts, and agri-environmental change information. Information regarding appropriate places for crop cultivation includes the information for 61 crops throughout the country surveyed over the period from 2004 to 2006. The basic detailed precision soil map used the digital topographic map (1:5,000) issued by the National Geographic Information Institute. Tailored prescriptions for fertilizer and soil management methods for respective soil characteristics recommended based on the results of an analysis of sample farmland soils and the diagnosis of nutrition states can be utilized for the farming activities of farmers.

Notably, the Korean Soil Information System provides effective agri-environmental information, not only to

farmers and experts, such as soil environment officials and research professionals, but also to the general public

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http://soil.rda.go.kr/


interested in returning to farming, since the system provides the necessary information regarding the selection of crops or the effective fertilization methods suitable for a particular set of soil characteristics.

The purpose of the Livestock Manure General Information System (http://www.nias.go.kr/envi/main.nias)

developed by the National Institute of Animal Science is to provide information regarding the technology and companies related to the disposition and use of livestock manure to industrial sites in a one stop location. The Livestock Manure General Information System provides not only technology information regarding the making of compost and liquefied fertilizer using livestock manure or has a decision making support system for the easy calculation of the optimum facility size pursuant to the standard design for livestock manure resource recovery facilities, but also has a wide range of information regarding compost and environment enhancer production companies. Compost depots that deal with manure are divided into two types: manure mixing and manure separation. In the case of the manure mixing compost depot, its required volume and area can be calculated depending on the type of disposition, number of heads, and moisture adjustment target. In the case of the manure separation compost depot, the required volume and area can be calculated depending on the type of disposition, area needed for different livestock sheds (Korean native cattle, milk cow, or pig) and number being bred (chicken). Depending on the number of head being bred, the size of the low content liquefied fertilizer facilities (Slurry Composting Biofiltration: SCB), quantity of required subsidiary materials, ongoing compost production quantity, and compost production quantity for a 12 month operation can be calculated.

The Agricultural Research and Extension Service of Gyeonggi-do operates the agri-environmental

Information System (http://www.epilove.com/). This system provides agricultural weather information and forecasts the occurrence of disease and harmful insects on a real time basis. The Agricultural Research and Extension Service forecasts and reports upon average temperature, high temperature, low temperature, and precipitation utilizing local forecast data provided by Korea Meteorological Administration and so gives actual help to farmers in regards to virtual responses and farming practices by providing forecasts on disease and harmful insects for rice, fruit trees, and vegetables on a real time basis.

The Rural Agricultural Water Resource Information System (RAWRIS) is the main system for the "Rural

Agricultural Water Resources Management Informatization" project under the jurisdiction of the Ministry of Food, Agriculture, Forestry and Fisheries pursuant to the Basic Plan for National Water Resources Informatization (December 30, 1999) of the Water Quality Improvement Planning Group of the Office of the Prime Minister in which government ministries, such as the Ministry of Land, Transport and Maritime Affairs, the Ministry of Environment, and the Ministry of Food, Agriculture, Forestry and Fisheries jointly participate; the system was established as water resources management information utilization system at the national level in order to provide online rural agricultural water and resources information created by the Korea Rural Community Corporation (https://rawris.ekr.or.kr/RawrisMIS/Default.aspx). The purpose of the establishment of this system was to provide the necessary data for the systematic management of various space information and the creation of policy related to the establishment of infrastructure used for the efficient preservation and management of farmland and the reinforcement of competitiveness as well as the management and development of farmland. This system provides information regarding rural agricultural water and rural underground water.

The Environmental Valuation Information System (EVIS) is a database that summarizes and presents the

results of research into pertinent fields on environmental valuation conducted by the Korea Environment Institute (http://evis.kei.re.kr/index.jsp). This system supports the analysis of diversified policies including environmental benefits analyses, environmental impact evaluation, and project feasibility studies by providing basic information regarding the estimates of environmental valuation pursuant to environmental quality changes. The system also summarizes and presents the results of research into the valuation of diversified fields, such as the environmental improvement from the creation of the eco-friendly agricultural complex, organic agriculture, the utility function of organic agriculture, and the dual function of agriculture in the agricultural field.

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http://www.nias.go.kr/envi/main.nias

http://www.epilove.com/

https://rawris.ekr.or.kr/RawrisMIS/Default.aspx

http://evis.kei.re.kr/index.jsp


Management using Agri-environmental Resources and the Improvement of their Use In order to use agri-environmental resources, which are comprised of environmental factors such as soil, water, and air, in an eco-friendly manner, and to manage them effectively, integrated management is required. Korea has arranged by utilizing information technology to mutually interconnect the established base regarding the integrated management of agri-environmental resources and the scattered management functions into one centralized location.

In the case of soil resources, a system which comprehensively manages not only the ownership and use of soil

but also its preservation has been established and continuous soil improvement and management has been accomplished. Through the soil state survey and agri-environmental indicators, the soil improvement project has been effectively implemented by identifying changes in the soil grades. In the case of the 'Korea Soil Information System', the general soil system presented earlier, it is operated as soil related one-stop service system in the agricultural field. In order to enhance the utilization of the soil information and the supplementation and utilization of weather information, the agri-environmental information system is integrated and centrally operated. In addition, on a mid to long term basis, the establishment of an integrated earth resources (land + soil) information system related to soil has been planned.

General water resource management, which not only considers irrigation and water control but also water

quality, has been established. The establishment of a systematic database of water related information, which up until now has been scattered around various ministries, is being done. A plan for the establishment of the integrated information system and the reinforcement of its connectivity to pertinent policy has been prepared for implementation through the activities of the ’Water resources consulting · coordination organization (provisional name)’ group. Along with this, efforts are being made for agricultural water quality improvement in reservoirs and freshwater lakes, along with preventive water quality management.

In regards to atmospheric resources, a general management plan for the agricultural sector has been prepared

regarding the mitigation of greenhouse gasses. In this regard, periodic evaluations on Greenhouse gas emission is first being done in the agricultural sector (the cultivation and sowing·livestock industry), and then the existing greenhouse gas emission statistics calculation system for agricultural, fisheries and food fields is being updated in accordance with the "Basic Act for Low carbon Green Growth" system. In addition, database establishment work for greenhouse gas emission statistics for the efficient management of greenhouse gas information, such as greenhouse gas reduction targets have been implemented. Along with this, the comparative study on Carbon Emission Trading and Carbon Footprint Indication System is being reinforced, and the securing of the Certified Emission Reduction (CER) and farming household incentive plan through the development of voluntary greenhouse gas reduction technology and accurate calculation of emission are being reviewed. The kinds of businesses in the agricultural sector for which participation in CER is allowed are chemical fertilizer reduction businesses using tailored fertilizer and green manure, rice production regulating agent businesses including bean·corn cultivation, bio-energy crop and fuel businesses, lignum bio-mass fuel businesses, and livestock manure and bio-gas energization businesses. Apart from the above, the enforcement standards for the carbon indication system by production and the distribution stage of eco-friendly agricultural foods has been prepared, and model certification projects are being implemented. In order to develop greenhouse gas reduction technologies and to establish a stable climate change adaptive agricultural products production system, the development of the technology for greenhouse gas reduction during agricultural production activities, including publishing a greenhouse gas reduction cultivation manual, global warming adaptive cultivation methods, and the development of disease and insect resisting crops have been actively implemented.

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Establishment of the Agri-environmental Management Infrastructure In order to establish the agri-environmental management infrastructure, a guideline for the establishment and implementation of the plan by field and region has been prepared and implemented. Notably, the general manual development and supply project for the management plan has been implemented for effective agri-environmental management. In addition, work is in progress for building up the database of pertinent indicators regarding agri-environmental changes by land type, preparing an agri-environmental pollution map utilizing GIS, and the establishment of an environmental load monitoring system.

In regards to manpower, for the cultivation of specialized manpower in the agri-environmental field, efforts

are being made to expand the agri-environmental education base for the officials in charge of government policy, including local governments. In this regard, essential subjects have been added to the eco-friendly agriculture curriculum, i.e. the 'basic course for agri-environmental' and 'understanding of agri-environmental and sustainable agriculture' which adds the subject of eco-friendly voucher education to farmers' education courses. In addition, the plan to cultivate specialists in the civil area has been implemented by designating a graduate school for specialization.

In the technology area, in order to develop and supply tailored eco-friendly agriculture technology, the

development and enacting of the tailored Best Management Program (BMP) has been accomplished. In regards to this, the expansion of the regional resource circulation system (the establishment of an efficient utilization system for livestock manure compost and liquefied fertilizer), and the organic cultivation and sowing-organic livestock industry complex has been actively fostered in relation to the development of effective programs for the promotion of precision and organic agriculture suitable for use by region, crop, and farming size. In addition, the government is developing an optimum agricultural water supply quantity calculation system that encompasses time, facility, and cultivation method and also to enhance the efficiency of the agricultural water supply by preparing a comprehensive water resources management system establishment plan regarding the conservation of agricultural water and its efficient use.

In the institutional area, in order to achieve effective agri-environmental resource management, the existing

'agri-environmental change survey' project will be reorganized and expanded to become the 'agri-environmental resources information system establishment and operation' program that will implement the management program for agri-environmental indicators and the standard survey area. In order to establish the sustainable agricultural food system, agri-environmental related factors have been added to aid in the process of the establishment and evaluation of major agricultural food plans. That is to say, 'agri-environmental indicators' were introduced to the agri-environmental impact evaluation items.

Building the Domestic and Overseas Cooperation Base and Education·Publicity In order for agri-environmental resources to be managed effectively and continuously, an appropriate sharing of roles amongst the subjects concerned and the building of a network system need to be done. It is essential to build agri-environmental related partnerships between the ministries, local governments, and government-producers in order to expand the network system used for the sharing of roles amongst the subjects concerned. For this, a consulting group (cooperative system) for the establishment of the integrated system for agri-environmental resources distributed by ministry should be organized. In order to build the agri-environmental information system in the regions, a governance system between the central and local governments needs to be established. In order for the development of eco-friendly agriculture to build up the base for continuous solid Green Growth, an appropriate distribution of roles regarding the government, producers, consumers, researchers, pertinent institutions and NGO's, and the establishment of a cooperative system are required. For an effective

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utilization of the agri-environmental information in regards to policy administration an appropriate distribution of roles amongst the subjects concerned, such as government officials in charge of policy, experts, and farmers, is necessary. In order to establish the agri-environmental information system to have a high credibility and high degree of utilization, the continuous interest and support of government officials in charge of policy, including budget support for continuous research and development, are necessary. Together with this, experts have to play an explanatory role regarding agri-environmental information, which farmers and officials in charge of policy require for an ease in understanding, as well as in the provision of timely and easily accessible information for the farmers who play a role in requesting the information which they need on site and for monitoring the developed information.

The government is actively participating in international conferences regarding the development and

management of OECD agri-environmental indicators in order to develop and expand agri-environmental policies and to reinforce international cooperation. The governments compare and analyze each others agri-environmental ideas and share the experiences gained by the advanced countries for the improvement of the agri-environmental indicators by participating in the OECD agri-environmental Policy Committee joint task force while responding to the international conventions for greenhouse gas reduction in the agricultural area and participating in research federations as well.

CONCLUSION

When we consider all of the changes in internal as well as external circumstances, the fostering of eco-friendly agriculture has become the task of this age. In order to have healthy Green Growth properly materialize in the agricultural area, the conversion from conventional agriculture to eco-friendly agriculture system is required. The results of the diagnosis of the environmental load of the agricultural ecological system using nutrient balance indicators has revealed that the excessive input of nitrogen has continued to decrease since 2005, and so the environment seems to be gradually improving. Thanks to the eco-friendly agriculture fostering policy that Korea implemented in the mid-1990's, we achieved a visible performance improvement to the level where the number of farming households which practice eco-friendly agriculture increased to about 6% of total farming households as of the end of 2014. Although the farming households which practice eco-friendly agriculture significantly increased, it has been evaluated that the overall organic relationships regarding the establishment of infrastructure, the creation of the production base, distribution, processing, and consumption still demand attention. Notably, it has been pointed out that the proportion of new certifications makes up most of the abolished low pesticides agricultural products from the production aspect and the creation of diversified added values from processing and associated industry are insufficient. The eco-friendly agricultural policy so far has concentrated on eco-friendly agri-environmental district creation project and the expansion of eco-friendly certified agricultural products from production aspect, however, not much attention has been paid to the issue of the environmental load generated from agricultural production activities. The water pollution problem, such as eutrophication from underground water pollution due to the outflow of surplus nitrogen and phosphorus has been growing, however interest regarding this subject remains very low.

In order to make healthy eco-friendly agriculture a reality, systematic agri-environmental resources

management needs to be done. So far, thanks to the development of agri-environmental indicators and the accumulation of pertinent information, the utilization of information through Internet is possible by using various newly established systems, such as the soil information system, the livestock manure information system, the agricultural weather, disease, and insect connection system, the rural agricultural water information system, and the environmental value information system. In order for the agri-environmental resources management system to be centered around the users, tailored optimum management methods by area should be prepared. In order to effectively manage and utilize the agri-environmental information from a system point of

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view, the establishment of a control mechanism which supervises all of the agri-environmental related work will have to be reviewed. The distribution of the roles of the subjects concerned and a cooperative system regarding them needs to be established for the effective management of the agri-environmental resources. It is also necessary to publish white papers regarding agri-environmental resources in order to effectively utilize the state of agri-environmental resources and the related information, not only domestically but also overseas., A database for agri-environmental indicators, including the calculation of nutrient balance indicators, which is utilized for agri-environmental policy and surplus nutrient management methods is especially important; it will be usefully utilized in the future for cooperative projects with countries interested in agri-environmental resources management. When nutrient management for farmlands is done properly, it will significantly contribute to greenhouse gas reduction and Green Growth in the agricultural field together with the fostering of healthy eco-friendly agriculture.

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Kim Chang-Gil, et al. Strategy for the Conversion to Eco-friendly Agricultural System and its Implementation Plan. Research Report R469. Korea Rural Economic Institute. 2004.

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Kim Chang-Gil and Kim Tae-Young. State of Production and Certification of Domestic and Overseas Eco-friendly Agricultural and Livestock Products. Breaking News on Research on Agricultural Policy Vol. 32. Korea Rural Economic Institute. 2006.

Kim Chang-Gil, et al. Research on the Restructuring of Direct Payment System for Eco-friendly Agriculture and Environmental Standard Compliance Conditions Support Policy Introduction Plan. Research Report C2009-63. Korea Rural Economic Institute. 2009.

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Kim Chang-Gil, et al. State of Production of Domestic and Overseas Eco-friendly Agricultural Products in 2010 and its Market Prospect. Policy Research Report P136. Korea Rural Economic Institute. 2010b.

Kim Chang-Gil, et al. Establishment of Sustainable Agricultural System in Korea. Korea Rural Economic Institute. 2015.

Ministry for Food, Agriculture, Forestry and Fisheries. The 3rd Five-Year Plan for Agri-Environmental Promotion (2011~2015). 2011.

Ministry of Agriculture, Food and Rural Affairs. Handbook of Policy Projects on Agriculture, Forestry, Livestock and Food Sectors. 2015. http://manual.agrix.go.kr/home/index.php.

Ministry of Agriculture, Food and Rural Affairs. Policy Programs for Promoting Environmentally Friendly Agriculture. Unpublished internal material. 2013.

National Agricultural Products Quality Management Service. Certification statistics information for eco-friendly agricultural products. http://www.naqs.go.kr/eng/main/index.naqs. 2014.

OECD. Environmental Performance of Agriculture in OECD Countries Since 1990. 2008. OECD. Environment at a Glance 2013: OECD Indicators - Agricultural Nutrient Indicators. 2014.

http://dx.doi.org/ 10.1787/ 9789264185715-en. Pearce, David. “Measuring Sustainable Development: Implications for Agri-Environmental Indicators”. In

Environmental Indicators for Agriculture: Issues and Design Volume 2 - The York Workshop. OECD, Paris.

Research Institute of Organic Agriculture (FiBL). 2010. Organic-Europe- Country Report. http://www.organic-europe.net/country_reports/ default.asp.

Rural Development Administration, National Academy of Agricultural Science. Agricultural Soil Information System(AGIS): http://asis.rda.go.kr/

The Ministry of Food, Agriculture, Forestry and Fisheries. The 3rd 5-year Plan for Eco-friendly Agriculture Fostering(2011~2015). 2011.

The Ministry of Environment. Environmental Geological Information System(EGIS): http://egis.me.go.kr/egis/ USDA ERS. 2010. Organic Agriculture: Organic Market Overview. http://www.ers.usda.gov/ Briefing/Organic/.

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http://manual.agrix.go.kr/home/index.php

http://www.naqs.go.kr/eng/main/index.naqs

http://dx.doi.org/%2010.1787/

http://www.ers.usda.gov/


Table 1 The List of Agri-environmental Indicators

Indicator Classification List Detailed List

Soil (Earth) Resource

Soil chemical property (Fertility)

pH, EC, organic matters, effective phosphorus and exchangeable positive ion

Soil(Earth) Resource Physical property Earthiness, effective soil depth and Degree of

drainage Soil(Earth) Resource Microorganism facet Soil microorganism distribution facet in farmland

Soil(Earth) Resource Heavy metal content Vulnerable farmland vs. total farmland

Soil(Earth) Resource

Agricultural pesticides residue quantity Pesticide residue quantity, pesticide risk

Water Resource Agricultural water quality Basic water quality (pH, DO), Organic matter indicator, nutrient salts, positive ion, heavy metals

Water Resource Water resources preserved quantity Water resources preserved quantity

Bio-diversity Gene resources preservation status

Gene resources preservation status by crop and by livestock kind

Bio-diversity Species diversity Wild native species, non-native species

Bio-diversity Eco-system diversity Farmland, forest, city, factory area

Atmosphere Resource

Greenhouse Gas emission volume Farmland (By crop, by livestock kind)

Nutrients Nutrient balance Nitrogen/Phosphorus balance (Nitrogen/Phosphorus surplus)

Nutrients Number of livestock breeding Cattle/pig/chicken

Nutrients Livestock manure generation quantity Nitrogen/Phosphorus

Nutrients Livestock manure treatment state To make compost, liquefied fertilizer and energy

Nutrients Chemical fertilizer quantity used Nitrogen/Phosphorus

Nutrients Nutrient intake quantity of crop Nitrogen/Phosphorus

Farm Management Nutrient management Integrated Nutrient Management(INM)

Farm Management Soil Management Mulching, soil management, plowing

Farm Management

Eco-friendly farm management

Organic agricultural method, eco-friendly agricultural method

Data: Kim Chang-Gil and 3 other persons (2008).

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Figure 1. Description The major factors used for the calculation of nutrient balance indicators (Nitrogen balance basis)

Figure 2. Nutrient Balance of the Arable Land in Korea (as of 2013)

Livestock Korean native beef cattle:

2,920K heads Dairy cattle: 420K heads

Pigs: 9,910K heads Chickens: 151,340K heads

Livestock products Meat Milk Eggs

Livestock manure (35,320K tons)

Purification treatment

(3,990K tons) Compost, Manure

(31,330K tons)

Chemical fertilizers

(350K tons) N: 260K tons P: 90K tons

Nutrient absorption (310K tons)

N: 210K tons P: 100K tons

Crops Crop cultivation area (1,730K ha)

Total fertilizer ingredient input: 540K tons (N: 380K tons, P: 150K tons)

Mineral leakage and accumulation Surface Water, Groundwater

(Fertilizer component: 230K tones)

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Table 2. Changes in Nutrient Balance of the Arable Lands in Korea

Units: kg/ha, %

Nutrient

Requirement (A)

Total Nutrient Supply [Nutrient Balance]

Excessive Nutrient

(A-B)

Nutrient Excess Rate

(%) (A-B)/A (B)

Chemical Fertilizer Supply

Livestock Manure Supply

Year N P N P N P N P N P N P

1990 112.1 56.4 242.3 108.8 211.9 90.5 30.4 18.2 130.2 52.4 116.2 92.9

1995 118.5 58.6 237.1 111.7 190.5 83.2 46.5 28.5 118.6 53.2 100.1 90.8

2000 120.5 59.7 240.4 102.8 189.4 73.8 51.0 29.0 119.9 43.1 99.5 72.2

2004 121.5 59.4 249.9 106.1 191.8 73.1 58.1 33.0 128.5 46.7 105.8 78.6

2009 120.3 59.9 199.7 87.7 140.2 54.6 59.5 33.1 79.4 27.8 66.0 46.4

2012 120.7 58.5 221.4 88.3 152.7 49.6 68.7 38.7 100.7 29.8 83.4 51.0

2013 120.1 59.2 221.1 88.0 152.6 49.6 68.5 38.4 101.0 28.8 84.1 48.6

Table 2. The Changes in Eco-friendly Agricultural Product Certification Records by Year

Unit: house, ha, ton, %

2000 2006 2008 2010 2012 2013 2014

Organic

Farming households (house)

353 7,167 8,460 10,970 16,7333 13,963 11,633

Area (ha) 296 8,559 12,033 15,518 25,467 21,210 18,306 Shipping (ton) 6,538 95,405 114,649 122,243 168,256 119,290 95,694

No-pesticides


1,060 21,656 45,089 83,136 90,325 89,992 56,756

Area (ha) 876 18,066 42,938 94,533 101,657 98,233 66,061 Shipping (ton) 15,694 320,309 554,592 1,039,576 841,543 691,238 479,441

Low-pesticides


1,035 50,812 119,004 89,992 36,025 22,797 16,776

Area (ha) 867 48,371 119,136 83,955 37,165 22,209 16,679

Shipping (ton) 13,174 712,380 1,519,070 1,053,702 488,466 370,898 250,348

Total


2,448 79,635 172,553 183,918 143,083 126,752 85,165

Area (ha) 2,039 74,995 174,107 194,006 164,289 141,652 100,046 Shipping (ton) 35,406 1,128,093 2,188,311 2,215,521 1,498,235 1,181,426 825,482

Source: National Agricultural Products Quality Management Service (2015).

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Table 4. Support policy targets and payment levels of the Direct Payment System for Environmentally

Friendly Agriculture

Unit: USD/ha

1999-2002 2003 2004-2011 2012~Current

Policy targets

Upland: low-pesticide1)

Paddy: no-pesticide1

Env-regulating area: over low-pesticide1

low-pesticide1 no-pesticide1) no-pesticide1)

Payment level

485/ha (same unit amount of payment in upland and paddy fields)

Upland

• organic :$735 • no-pesticide: $624 • low-pesticide: $485

Paddy2)

• organic: $713 • no-pesticide: $602 • low-pesticide: $643

Upland same as in 2003 Paddy2) • organic :$763~856 • no-pesticide: $684~777 • low-pesticide: $601~694

Upland • organic : $1,111 • no-pesticide:$ 926 • low-pesticide: $485 Paddy2)) • organic :$1,019 • no-pesticide: $620 • low-pesticide: $340

Notes: 1) The scope of “low-pesticide” in policy targets denotes the certified environmentally friendly farmers who meet the low-pesticide standard, or exceed the standards specified by no-pesticide and organic farming methods. Similarly, "no-pesticide" is specified as an upper stage, which covers no-pesticide and organic farmers, but not low-pesticide farming.

2) The basic payment for paddy is provided at $463; this is topped up by incentive payments of $250 for organic or trans-organic production, or $139 for no-pesticide production.

Source: MAFRA (2015).

Figure 3. The distribution channels for eco-friendly agricultural products

Consumer Org. (Hansalim․Saenghyup)

Producers' organizations (NACF, Farm Corporations)

Large scale Mart (Large Discount

Stores, Dept. Stores, Large

Supermarkets)

Site

broker Specialized Shops,

Internet trade

Consum

er

Wholesale market

Producers

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Figure 4. Vision and Objectives for Promoting Env-friendly Agriculture

Figure 5. An example of the soil environment information from the Korean Soil Information System

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chang-gil kim - agnet.org · chang-gil kim . korea rural economic institute, seoul, korea . e-mail:...

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