GANGHWA, SOUTH KOREA – In a proactive move to stabilize the agricultural sector and ease the financial strain on livestock farmers, Ganghwa County in Incheon Metropolitan City has secured KRW 4.3 billion (approximately USD 3.2 million) in government-backed policy loans for feed purchases in the first half of 2024. This significant financial support aims to mitigate the impact of fluctuating feed prices and ensure the operational stability of local farms.
The initiative, announced by Ganghwa County officials, will benefit 68 selected livestock farms in the region. The policy loan program is designed to provide farmers with access to low-interest financing for the acquisition of essential feed supplies. Notably, the funds can be utilized not only for immediate feed purchases but also to settle outstanding credit balances, offering crucial financial flexibility to farm operators.
Under the terms of the program, eligible farmers can apply for these loans through their local agricultural and livestock cooperatives until June 12th. The loans feature a favorable fixed annual interest rate of 1.8% and a repayment structure involving a two-year grace period followed by a lump-sum payment. This structure is intended to provide farmers with a period of financial breathing room before commencing repayment.
The maximum loan amount available to individual farms is determined by the type and scale of their livestock operations. Farmers raising Korean beef cattle (Hanwoo), dairy cattle, pigs, and poultry can access up to KRW 600 million (approximately USD 450,000). Recognizing the additional challenges faced by farms impacted by animal diseases and those actively participating in designated livestock support programs, the county has increased the maximum loan limit to KRW 900 million (approximately USD 675,000) for these specific cases, including those affected by Foot-and-Mouth Disease, Avian Influenza (AI), and African Swine Fever (ASF).
In a further demonstration of its commitment to supporting the livestock industry, Ganghwa County is implementing supplementary measures to assist farmers grappling with the dual pressures of rising feed costs and declining livestock market prices. Hanwoo farmers who utilized the 2023 feed purchase loan program will be eligible to apply for a one-year deferral on their principal repayments. To avail themselves of this provision, farmers will need to obtain a confirmation letter from Ganghwa County and submit it to their respective financial institutions.
Ganghwa County Mayor Park Yong-cheol emphasized the importance of this financial intervention, stating, "We anticipate that this policy loan support will provide much-needed relief from the burden of escalating feed costs for our livestock farmers, who are currently navigating a challenging economic climate. Looking ahead, we are committed to securing additional funding in the latter half of this year to ensure continuous and robust support for our agricultural community."
This timely financial assistance from Ganghwa County underscores the local government's dedication to supporting its agricultural sector and ensuring the long-term viability of livestock farming within the region. By providing access to affordable credit and implementing additional relief measures, the county aims to bolster the resilience of its farmers in the face of economic headwinds.
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