 The Empirical Analysis of Production Cost Reduction Effects from the Agricultural Machinery Rental PolicyKyungsoo Nam Journal of Rural Development/Nongchon-Gyeongje, 2021, vol. 44, issue 2 Abstract: In recent years, agriculture has been suffering from a severe shortage of labor. Accordingly, the government is striving to increase the agricultural mechanization rate to solve the labor shortage and improve agricultural productivity. The most representative policy is the implementation of agricultural machinery rental system. In the dry-field farming, however, the mechanization rate is still low. Therefore, the government is looking for a way to improve the rate. This study proposes an improvement of the agricultural mechanization rate indicators. In addition, a method of analyzing production cost reduction according to the agricultural machinery rental policy is presented in this study. As a result of the analysis, the mechanization rate of dry-field farming is estimated to be 50.1 to 58.9 percent. The average production cost reduction due to the policy is estimated to be from 520,000 to 530,000 won per hectare. Pepper is found to be the largest cost-reduction commodity as much as about 880,000 to 930,000 won, followed by potato (about 660,000 to 700,000 won) and cabbage (about 610,000 to 630,000 won). Keywords: Productivity; Analysis (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ags:jordng:330820 Access Statistics for this article More articles in Journal of Rural Development/Nongchon-Gyeongje from Korea Rural Economic Institute Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.