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The Determining Factors of Agricultural Income of Returning Farmers in Korea
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귀농가구의 농업소득 결정요인

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Type
Academic journal
Author
Sae Bom Kim (서울대학교 농경제사회학부) Jin Hwa Jung (서울대학교)
Journal
한국농업경제학회 농업경제연구 농업경제연구 제58권 제2호 KCI Accredited Journals
Published
2017.1
Pages
69 - 90 (22page)

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The Determining Factors of Agricultural Income of Returning Farmers in Korea
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Abstract· Keywords

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This study investigates the factors that determine the agricultural income of returning farmers in South Korea. For this purpose, Heckman’s two-step method is applied to the survey data of 192 returning farmers who have settled in rural areas and 251 potential returning farmers. According to the empirical results, farming experiences of returning farmers and participation in agricultural production organizations increased agricultural income. By contrast, neither formal schooling nor motivation for rural migration had a significant effect on the agricultural income of returning farmers. Notably, the age of returning farmers and agricultural income illustrate an inverted-U relationship, wherein agricultural income reaches its peak in the late 40s, and subsequently declines. Agricultural income increases as size of land increases. On the contrary, agricultural income is negatively related to the size of off-farm income of returning farmers. These findings suggest that, for higher agricultural income, policies should be directed towards promoting participation of returning farmers in agricultural production organizations, while developing strategies for easing the difficulties associated with expanding the area of cultivated land.

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