Agriculture ministry sets rules for farm price stability and supply committees

The agriculture ministry said it has enacted revised rules to operationalize South Korea's agricultural supply management and price stability systems. The regulations, which take effect on August 27, 2026, establish the composition and operating procedures for new government committees tasked with balancing farm output and stabilizing market costs.

The updated decree creates formal structures for the Agricultural Supply Adjustment Committee and the Marine Products Supply Adjustment Committee, mandating two-year terms for appointed members. Meetings for both bodies will convene when co-chairs deem it necessary or upon request by one-third of the committee, requiring a majority vote for decisions. It also launches the Agricultural Trade Policy Deliberation Council, where commissioners will serve three-year terms with the option for a single reappointment; the council chair may summon experts and stakeholders to provide testimony during deliberations.

Under the new framework, entities entrusted with stockpiling agricultural goods must submit annual management plans detailing purchase and sales schedules to the agriculture minister. These contractors will face performance reviews evaluating the timing, volumes and effectiveness of their efforts to regulate supply, with assessments required to incorporate feedback from producer groups and industry experts.

A critical component of the revision defines the methodology for calculating average prices used in the agricultural price stability program. When market prices fall below a standard threshold, the government pays farmers the difference. The rules specify that average prices will be derived primarily from auction rates at the Garak-dong Agricultural and Fishery Wholesale Market in Seoul during the harvest season, excluding distribution costs such as transport, unloading and sorting fees. If auction data is unavailable for specific items, the ministry will use prices purchased by agricultural cooperatives or conduct direct surveys.

Seo Jun-han, the ministry's director-general for distribution and consumer policy, said the changes aim to strengthen the institutional foundation so farmers can work with confidence while consumers access produce at reasonable prices.