Common violations involving inherited land, elderly farmers and clan-owned plots to be exempt from disposal regardless of Farmland Bank entrustment

Farmland Bank to buy land based on regional demand, expanding scope beyond agricultural promotion zones

Agriculture Minister Song Mi-ryung announces follow-up measures; special bill to be introduced this month, with legislation targeted by December

Minister of Agriculture, Food and Rural Affairs Song Mi-ryung answers lawmakers' questions during a national audit of the ministry at the National Assembly in Yeouido, Seoul, on Wednesday.
Minister of Agriculture, Food and Rural Affairs Song Mi-ryung answers lawmakers' questions during a national audit of the ministry at the National Assembly in Yeouido, Seoul, on Wednesday.

The government plans to exempt common and routine farmland law violations from disposal proceedings, regardless of whether the land has been entrusted to the Farmland Bank. The measure would cover cases such as inherited farmland left fallow or land leased out by elderly farmers who can no longer till it themselves. The Farmland Bank would purchase and supply farmland based on regional demand and farming efficiency, with its acquisition scope extended beyond agricultural promotion zones. Farmland with a clear speculative purpose, however, would still be subject to disposal orders under current law.

Minister of Agriculture, Food and Rural Affairs Song Mi-ryung announced the plan Thursday at the ministry's press room, outlining the "follow-up measures and institutional reform direction" stemming from the farmland investigation. The government intends to introduce a special measures act this month to provide relief for routine violations identified in the probe, with the aim of completing the legislative process by December.

The core of the follow-up plan is that common and routine violations of the Farmland Act will not trigger disposal proceedings based on the investigation's findings, and Farmland Bank entrustment will not be required as a condition. Through the enactment of the special measures act, disposal obligations and compulsory performance fines would not be imposed unless speculative intent is clear.

Cases eligible for relief include fallow inherited farmland, ownership exceeding the legal ceiling on inherited land, and customary lease arrangements by elderly farmers. Even where an elderly farmer has entrusted cultivation to a neighbor or relative because they can no longer farm themselves, disposal will not proceed solely on the grounds that the arrangement fails to meet the lease conditions permitted under the current Farmland Act.

The same approach applies to farmland owned by Buddhist temples or clan organizations, as well as unregistered inherited farmland. Where multiple owners are involved or title relationships are complex — making it difficult to enter into a formal lease agreement — disposal will not proceed on the basis of the investigation's findings. Farmland left idle for an extended period because it is landlocked or otherwise difficult to farm will also be excluded from disposal, provided there is no clear speculative intent.

Exemption from disposal and legalization of lease arrangements are treated as separate matters, however. The disposal exemption for common and routine violations does not require Farmland Bank entrustment or the conclusion of a written contract during a legalization grace period. Converting a lease arrangement not currently permitted under law into a lawful contract will still require going through the legalization procedure established under the special measures act.

The scope and method of Farmland Bank acquisitions will also change. Currently, purchases focus on farmland within agricultural promotion zones that is ready for immediate cultivation; going forward, land outside those zones will also be eligible if it can be put to actual farming use.

On top of individual applications, the acquisition process will be expanded to factor in regional farmland demand and farming efficiency. The Farmland Bank will assess the land needs of young and full-time farmers and secure and supply farmland accordingly, linking purchases to actual farming demand.

Farmland released by retiring elderly farmers will be connected to young farmers entering the sector. The Farmland Bank will purchase or take custody of such land, consolidate it into larger parcels and supply it to young and full-time farmers. Expanding the farmland pension scheme is also planned to support elderly farmers in retirement.

The government will consult with the National Assembly on increasing the Farmland Bank's budget for 2027 to reduce its backlog of pending purchases. A one-stop service system consolidating all Farmland Bank-related services will also be established.

A grace period will be introduced to allow the legalization of customary farmland leases and unlicensed agricultural facilities. It is set to take effect after the special measures act is enacted; the specific duration of the grace period has not yet been announced.

Even where the conditions for permitted leasing under the current Farmland Act are not met, a written lease agreement concluded during the grace period will be recognized as a lawful lease for the duration of that contract. Farmland Bank entrustment is not a mandatory condition, though landowners who choose to entrust their land may designate the existing cultivator as the tenant.

Unlicensed facilities — including agricultural storage buildings, farmhouses and simple crop-processing facilities — may apply for retroactive permits during the grace period. However, the facility must meet the requirements of other applicable laws and must be one for which a farmland conversion permit or similar approval could have been sought in advance but was not. Prohibited facilities within agricultural promotion zones are excluded, and non-agricultural facilities will be required to pay a farmland conservation levy.

Farmland that has long since turned into forest, as well as woodland or burial grounds that have been used as farmland, will be eligible for reclassification through an application process to reflect their actual use.

Farmland with a clear speculative purpose will be handled strictly. The three categories subject to enforcement are: farmland acquired for farming purposes in a land transaction permit zone that has since been abandoned or leased without authorization; farmland shares acquired through false farming plans to profit from price gains; and farmland acquired under an agricultural corporation's name that has been subdivided for sale or leased for profit. Farmland acquired through inheritance is excluded from the first category.

The government said it will give the owners of such farmland sufficient opportunity to explain their circumstances before deciding whether to issue a disposal order under the current Farmland Act.

Song said the ministry would pursue amendments to the Farmland Act in the first half of next year to expand recognized grounds for leasing and fallow land, and to strengthen protections for actual cultivators. The Ministry of Agriculture, Food and Rural Affairs plans to open a farmland investigation counseling center starting next week to guide landowners through the follow-up measures and gather feedback from the field. An integrated platform linking farmland-related information will also be built.


adastra@heraldcorp.com