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Chang-Gil Kim

FFTC-APAARI-COA-TDARES International Training Course on SUF (11th of May, 2015, 14:00-15:00)

KCG’s Profile

Name: Kim Chang-gil Department: Dept. of Natural Resource an

Environment Research, KREI Position: Research Director Contact: 82-2-3299-4265 (HP:82-10-9447-4265) E-mail: changgil@krei.re.kr

<Education Background> - Ph.D. in Agricultural Economics from Oklahoma State University,

USA

<Research Areas> - Sustainable Agriculture Development - Agricultural and Environmental Resources Management - Climate Change and Green Growth

<Major Careers> - Chair, JWP on Agriculture and the Environment in OECD - Executive Board Member, Korea Env. Economics Association

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Contents

I. Introduction

II. Diagnosis of the Environmental State in Agricultural Sector

III. Eco-Friendly Agriculture Implementation Status

IV. Policies for Promoting Eco-Friendly Agriculture

V. Approach to Agr-Environmental Resource Management

Ⅵ. Conclusion

★ After this presentation, you will be able to

☞ Understand backgrounds and meaning of environment-friendly agriculture (EFA) in Korea

☞ Understand current status of agro-environment, EFA and policy programs

☞ Share the information on agri-environmental resource management

☞ Learn about the method for analyzing environmental problem in agricultural sector using nutrient balance indicator

Objectives of KCG’s Keynote Presentation

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I Introduction

Relationship between agriculture and environment

- Positive role of environmental preservation

- Negative role of being a potential environmental pollution

source

Features of Korean Agriculture

- Implementing a core policy for increasing food

production in order to support its large population on

limited land

- Intensive ‘high input-high output’ agricultural method

- Intensive and specialized livestock production

- Deterioration of agricultural environment

Problem Statement

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Fostering environmentally-friendly agriculture

- EFA seeking harmony between agriculture and the

environment

- Defined EFA as simultaneously seeking to secure profitability, ecosystem preservation, and safety

- Technically, non-use (organic) or minimal use (pesticide free, low pesticide) of agri-chemicals; Recycling of agricultural and livestock by-products

- Established institutional framework (Dept of Sustainable Agriculture in the MFAFF in Dec. 1994, Enactment of EFA Promotion Act in 1997, Implemented the 5-year Plan for EFA every five years since 2001)

Externalities in the agricultural sector

- Costs are often neglected and often occur with a time lag

- Affecting groups whose interests are not well represented in political or decision-making process

- Identifying the source of the externality is not always known

Negative externality drawn from environ challenges

- They are usually non-market effects and therefore their costs are not included in market prices

-As the polluter does not full cost of their actions, so there are no rational incentives to reduce negative externalities

→Many agricultural systems suffer by undermining key natural assets that they require to be successful

Background Information

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Interpretation of Sustainable Agriculture

- Focusing on types of technology in particular settings,

especially strategies that reduce reliance on non-

renewable or environmental harmful inputs

- Including eco-agriculture, organic, ecological, low-

input, biodynamic, environmentally-friendly,

community-based

- Agricultural system viewed in terms of resilience (the

capacity of systems to buffer shocks and stresses) and

persistence (the capacity of systems to carry on)

→ Three dimensions of SA concept such as ecological,

economic and social aspects

Conceptual Framework of Sustainable Agriculture

Economic

Aspect Social

Aspect

Ecological

Aspect Sustainable Agri

Conventional Agri

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Agri–Resources Management System for Sustainable Agri

Crop Livestock Micro-

organism

Bio–Environmental Resources Use

Ecosystem

Animal microbes

Soil · Water · Air

Optimal Resources

Management

• Sustain Agri- production • Profitability Increasing

• Multifunctional Increasing

Regulatory Approach

- Direct regulation to reduce point source pollution

- Minimum standards for various treatment technologies or minimum performance standards based on actual emission level

- Ban on the production and application of some agro-chemicals

Economic Incentive Approach

- Incentives (payments to farmers) designed to encourage environmentally beneficial activities or disincentives (tax) discourage environmentally harmful activities

- Environmental subsidies or taxation (or charges), tax concessions

- Tradable permit system (pollution permit)

Effective Instruments for SAD Policy Programs

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Cross-Compliance Approach

- Cross-compliance means that a farm’s operational management has to meet certain requirements in order for its owner to be eligible for assistance under government support schemes

- Income support dependent on meeting certain environmental and conservation objectives in the context of market and price policy

Advisory Approach

- Education and technical assistance to persuade farmers to voluntarily adopt less polluting practices

- Supplemental tool with regulation and economic incentives

Ⅱ Diagnosis of the Environmental State in Ag Sector

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Agri-Environmental Indicator (AEI)

- Representative values for explaining the reality among the environmental factors for agro-ecology system based on specified calculation method

- Utilized for the diagnosis of the environmental state

- Types of AEI: Soil resource, Water resource, Biodiversity, Atmosphere resource, Nutrients, Farm management

Agri-Environmental Indicator for the Environmental State Diagnosis

Diagnosis of environmental load in agri-ecology system using the nutrient balance indicator

- good shape of nutrient balance indicator drawn from properly managed agri-environmental resources

- excessive level of nutrient balance indicator interpreted as the deterioration of the agri-ecological environment

<Scheme of N i t rogen Balance Ind icator>

Diagnosis of the Environmental Load in Ag Sector

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I-O Framework for Material Cycling in Agro-ecosystem

Livestock feed (Concentrates, Roughages)

Fertilizers (Chemical, fertilizer,

organic fertilizer)

Livestock

Livestock manure

Cultivated land

Food crops

Livestock products

(Meat, milk, eggs)

Extra resource

By-products

Foods

[Soil, Water] Inorganic runoff, soil loss, erosion,

leaching, denitrification, water pollution, Agro-ecosystem deterioration

[Input] [Output]

Nutrients Balance Calculation

Livestock (Manure)

Farmgate Banance Regional Balance, National Balance

Fertilizers / Feedstuffs (N,P) Inputs

Cultivated land (Plant Uptake) Statistics

Nutrients Surplus

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<Changes in Nutrient Balance of the Arable Lands in Korea>

Nutrient

Requirement

(A)

Total Nutrient Supply

[Nutrient Balance]

Excessive Nutrient

(A-B)

Nutrient

Excess Rate

(%)

(A-B)/A (B)

Chemical Fertilizer

Supply

Livestock Manur

e

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

Units: kg/ha, %

Materials Cycling Structure in the Agro-Ecological System in Korea (2013)

Concentrates (16,010K tons)

Roughages (4,130K tons)

Chemical fertilizer

(350K tons)

N: 260K tons

P: 90K tons

Livestock Beef cattle 2,920K heads Dairy cattle 480K heads

Pig 9,910K heads Chicken 151,340K heads

Livestock manure (35,320K tons)

Purification (3,990K tons)

Compost/liquid fertilizer

(30,860,000 tons)

Crop cultivated land (1,730K ha) Total amount of fertilizer component :

540K tons (N: 380K tons, P: 150K tons)

Inorganic runoff and deposition Surface water/ground water

(Fertilizer component: 230K tons

crops

Livestock products

Meat Milk Eggs

Crop production

Food crop 5,520K tons Oilseed crop 210K tons Vegetable 9,580K tons

Fruit 2,590K tons

Nutrient absorption (310K tons)

N: 210K tons P: 100Ktons

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Provincial Distribution of Nutrition Surpluses

<Nitrogen Balance> <Phosphorus Balance>

Environmental deterioration from “high input – high output” in agricultural production system

- Excessive use of chemical inputs

- Intensive large-scale livestock production based on imported feed

Nutrients surpluses of cultivated land, runoff potential of inorganic compounds, surface/ground water pollution

Need for special measure for managing nutrients

surpluses in cultivated land

Environmental Problems in Agricultural Sector

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Status of Nitrogen Balance Indicator in OECD (1992)

■ 1st Netherland (345kg/ha), 4th Korea(213 kg/ha)

Status of Nitrogen Balance Indicator in OECD (2004)

■ 1st Korea (240 kg/ha), 2nd Netherlands (213 kg/ha)

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III Eco-Friendly Agriculture Implementation Status

Rapidly Increasing Env-Friendly Farming Practices

- Annually about 55% increase in env-friendly farming area from 2000 (2,039ha) to 2014 (100,046ha)

- Comprising 5.9% of total farmland area

- Certified env-friendly products in 2014

: 18.3% in organic, 66% in non-pesticide (chemical-free product), 16.7% in low-pesticide

- Regionally quite difference in EFA practices

Current Status of EFA Production

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Certification System of EFA Products

Organic Agri-Product (Agricultural products for which organic synthetic agrochemicals and chemical fertilizers are not used. Organic Livestock: Livestock for which antibiotics/ antimicrobials are not used and organic feed are fed.

Non-pesticide Agri-Product (Chemical free agri-product)

* Agricultural products for which organic synthetic agrochemicals are not used and chemical fertilizers are used below 1/3 of recommended level

* Antibiotics-free livestock: Livestock for which antibiotics/antimicrobial-free feeds are fed

Changes in Eco-friendly Agricultural Product Certification Records by Year

2000 2006 2008 2010 2012 2013 2014

Org

an

ic

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

-pestic

ides

Farming households (house) 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

Lo

w-p

estic

ides

Farming households (house) 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

To

tal

Farming households (house) 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

Unit: household, ha, ton

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

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Price Premium of EFA Products

Price Difference between EFAP and Conventional AP(CAP)

- Green Onions: 200%, Cucumber and Tangerines: 180%, Rice: 160% Lettuce and Tomato: 150%

3,510

11,333

13,575

3,196

10,596

6,142 5,171

2,194

7,155

8,730

1,574

5,783

4,118

2,840

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Rice Lettuce R-Pepper Green Onion Cucumber Tomato Tangerines

EFAP

CAP

Unit: KRW

160%

160%

160%

200%

200%

150% 180%

Structure of Marketing Channel in EFAP

P R O D U C E R

Prod Corp |

Reg Ag Corp Ag Corp Body

EFA Corp Body

Depart-Store Super Mart

Organic Mart

Internet Shopping

Consumer Corp

Direct Marketing

C O N S U M E R

Wholesale Mart

Food Process Co

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Status of EFA Product Distribution

Types Major Sources of Distribution Proportion

Rate(%)

Direct Marketing Farmer-to-Consumer, Internet 10-20

Producer Organization Organic Farmers Corp, NACF’s Hanaro Club and Mart

40-45

Consumer Organization Consumers’ Corporative Federation, Hansalim,

15-20

EF Distribution Stores Dept Stores, Large Scale Discounting Store, Special Organic Store

25-30

Marketing Channel of EFA Products

- direct transaction with consumers (10-20%), producers’ organization (NACF) and consumers’ cooperatives (40-50%), special distributors and department stores (25-30%)

Size and Projections for EFA Products Market

Market Volume of EFA Products

- KRW 4,862 billion (USD 45.0 billion) in 2014

Hundred million won

Abolitin of low pesticides certification

system

6.6 trillion

5.3 trillion

4.6 trillion

3.6 trillion

1.8 trillion

1.4 trillion

0.3 trillion

3.2 trillion

1.4 trillion

0.5 trillion

5.5 trillion (84%)

1.0 trillion (16%)

Organic

cultivation No pesticides Low

pesticides All

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IV Policies for Promoting EFA

Vision for EFA Promoting

Vision and Goals of Promotion Policies for EFA

- Setting a vision for promoting the environmentally friendly agricultural policies as “improving the quality of life of the peoples by fostering harmony between agriculture and environment”

- Four strategies for a successful transition to EFA system ① establishment of a regional agricultural system that recycles

resources based on 3Rs (Reduce, Recycle, and Reuse) ② switching from “maximized production” to “optimized production”

in consideration of agricultural and environmental capacity of the region

③ based on scientific analysis on environmental resources for agriculture

④ proper integration among policy supports, environmental regulations and compensation systems

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<Vision and Goals of Promoting EFA in Korea>

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Development & Use of Bio.

Environmental Resources

Soil · Water · Air

Support

ㆍ

Control

ㆍ

Compensation

System

Crop Livestock Useful

Microorganism

Microorganism Animals

Ecosystem

Mitigation of

GHG

Preservation of

Agricultural

Ecology

System

Securing of

Agricultural

Safety

Maintenance of

Profitability

Enhancement

of quality of

life of people

·

Harmony

between

agriculture

and

environment

Optimum

Agri-Env.

Resources

Management

Vision Establishment of Environmental-Friendly Green Industry

: Nature and People Together

Core

Values

Environmental-Friendly Agriculture for Farmers’ Wellbeing

Environmental-Friendly Agriculture for Consumers’ Happiness

Environmental-Friendly Agriculture for Natural Environment Health

Policy

Targets

Env-Friendly Agriculture Cultivating Acreage: 4.9% (2009) 15% (2015)

Consumption of Chemical Fertilizers/Pesticide : 15% Reduction by 2015

Consumption of Chemical Fertilizer : 242kg/ha (2009) 205 (2015)

Consumption of Pesticides : 9.9kg/ha (2009) 8.4 (2015)

Market Volume of Organic Foods : KRW 550 billion KRW 2 trillion (2015)

Core

Tasks

Establishment of Sustainable Eco-Friendly Production Base

Promoting Distribution and Consumption of Eco-Friendly Ag Products

Establishment of Safety Management System for Consumers’ Confidence

Promoting Processing and Agricultural Input Industry

Promoting Eco-Friendly Agricultural Technology and Human Resources

Establishment of Agricultural Resources Management System

Promoting EFA, Livestock, Forestry and Fisheries Industry

<Scheme to Implement of the 3rd 5-Year (2011~2015) EFA Promotion>

Policy Based Projects by Sectors for Fostering EFA

Five-year EFA Fostering Plan

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Policy Based Projects by Sectors for Fostering EFA

Eco-Friendly Agriculture Base Establishment Project

- In order to promote the growth of EFA by establishing its production base in pursuit of co-management of the agricultural activities such as production and distribution at the grouped fields or farmland, inducing lesser use of pesticides and chemical fertilizers, and lesser production cost

- Applicable to farmers or producer groups (villages or more than 10 hectares with more than ten farmhouses participating in the farming).

- Subsidies of this project by village unit for purchasing production facilities and equipment of agricultural materials,

product distribution, and education for EFA

- Subsidies are granted differentially between KRW 100 million (USD 925,926) and KRW 3 billion (USD 2.78 million) per business unit, according to the scale and conditions of the business

Policy Based Projects by Sectors for Fostering EFA

Direct Payment System for EFA - Aimed at fulfilling public functions of agriculture such as

environmental conservation, and spreading the EFA 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 EFA

- Direct payment applied differentially depending on the

certification level and whether the farmland is either rice paddies or uplands, and the land limit of provision is between 0.1 to 5.0 hectares

- Direct payment per hectare for upland is KRW 1.2 million (USD 1,111) for organic cultivation and KRW 1 million (USD 926) for no-pesticide cultivation. Direct payment per hectare for rice paddies is USD 1,059 for organic cultivation and USD 620 for no-pesticide

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Policy targets and payment levels of the Direct Payment System for EFA

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).

Biological Disease and Harmful Insect Prevention Project

▶Pest Control Program Using Natural Enemies

- Supporting 9 crops for natural enemies in greenhouse horticulture such as strawberry, tomato, red-pepper, bell-pepper, cucumber, melon, and grape

▶Microorganism Project for Biological Insect Prevention

- Supporting 10 crops: strawberry, tomato, chilies, bell -pepper, cucumber, watermelon, pumpkin, lettuce, water flavoring parsley, perilla and cabbage

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Eco-Friendly Fertilizer Support Project

Eco-Friendly Fertilizer Support Project is divided into the Organic

Fertilizer Support Project and the Soil Conditioner Assistance

Project

▶ Organic Fertilizer Support Project

- Promoting resource recovery through the recycling of by-products from agriculture, forestry and livestock industry

- Supporting for organic fertilizers such as fixed press cake fertilizer, fixed organic fertilizer and organic composite fertilizer

- Supporting for by-product fertilizers such as livestock manure compost and general compost

▶ Soil Conditioner Assistance Project

- Improving acidic soil and farmland soil with a low effective silicic acid content through the input of soil conditioners (i.e., lime and silicic acid)

- Soil Improvement and Preservation Project based on Article 20 of the Farmland Act

- Supporting for Paddy field with an effective silicic acid content of less than 130 ppm and fields with volcanic acid

- Supporting lime for fields with acidity of less than pH 6.5 and farmland with heavy metal pollution

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Policy Based Projects by Sectors for Fostering EFA

EFA Products Distribution Activities and Consumption

Promotion Project

- Financial support for direct transaction

- Education of producer and consumer organizations

- Expansion of the installation of specialized stores

- Eco-labeling certification system

- Supporting school meals using the EFA products

- Supporting processing EFA products

Agricultural Water Quality Improvement Project

- Establishing a clean water supply base and creating a pleasant living environment for rural areas

- Supporting for agricultural reservoirs in which the qater quality exceeds the ‘somewhat bad’ grade from living environmental standard for lakes and marshes based on the Basic Act of Environmental Policy handled by Korea Rural Community Cooperation

Livestock Manure Treatment Support Project

- Fostering eco-friendly livestock industries including the prevention of water quality pollution and the preservation of the living environment through resource and energy recovery (making compost and liquid fertilizers from livestock manure)

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V Approaches to Agri-Env Resou Management

Utilizing and Management of Agri-Env Information

- AEI: information regarding environmental elements such as soil,

water, air, etc., which compose the agricultural system; organic connection and comprehensive combination of each element

- Korean Soil Information System developed by Rural

Development Administration: http://soil.rda.go.kr/eng/

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Utilizing and Management of Agri-Env Information

- Comprehensive Livestock Manure Information System developed by National Institute of Animal Science: http://www.nias.go.kr/envi/main.nias

- Agricultural Research and Extension Service of Gyeonggi-do

operates the agri-environmental Information System for providing agricultural weather information and forecasts the occurrence of disease and harmful insects on a real time basis:

http://www.epilove.com/ - Online rural agricultural water and resources information created

by the Korea Rural Community Corporation https://rawris.ekr.or.kr/RawrisMIS/Default.aspx

- Environmental Valuation Information System (EVIS) providing

database for research results on environmental valuation conducted by the Korea Environment Institute: http://evis.kei.re.kr/index.jsp

Management Using Agri-Env Resources

- Comprehensive management related to agricultural environmental resources, which consist of environmental elements such as soil, water, air, etc., in an environmentally friendly way and manage them effectively

- Establishing the foundation for comprehensive management of

agricultural environmental resources and connected dispersed management functions in a mutual and organic way by utilizing information technology

- Water resources: initiatives for comprehensive water

management taking into account irrigation, flood control, and water quality simultaneously, while systemic database setting up by collecting water resources-related information

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Establishment of AE Management Infrastructure

- 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.

- Need for efforts on expanding the agri-environmental education base for the officials in charge of government policy, including local governments

- Developing tailored eco-friendly agriculture technology, the development and enacting of the tailored Best Management Program (BMP) such as regional resource circulation system and organic cultivation-livestock industry

VI Conclusion

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Concluding Remarks on EFA

Significances of EFA

- EFA as an important task of our age in order to activate healthy sustainable agricultural system

Evaluation of current status of EFA in Korea

-Quantitative aspect: remarkable growth in EFA production

-Qualitative aspect: surplus problem of farmland nutrients, weak of agro-environmental resource management

Core tasks for establishing EFA and SA system

-Need for systematic agri-environmental resources management

- Tailored optimum management methods (BMP) by area

- Establishment of control mechanism regarding to all of the agri-environmental related work

- Smart nutrient management including fertilizer and livestock manure for improving crop production and soil conservation

☞ Key to success of EFA activation depending on smart nutrient management

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