Maize Grain Monthly Update (South Korea) 2026-01

The Ministry of Agriculture, Food and Rural Affairs of South Korea has opened applications for the 2026 strategic crop direct payment program, which supports farmers growing key crops such as rice, beans, and glutinous rice to enhance food security and stabilize supply. This year, the program has expanded to include rice for supply control, alfalfa, azuki beans, and sorghum, aiming to reduce overproduction and rice cultivation area. Payment rates have increased, with summer forage rising from 500 million won to 550 million won per hectare, and corn and sesame seeds from 100 million won to 150 million won. Applications for winter crops close on April 3, while summer crop applications are accepted until May 29 at local administrative centers. Eligibility for white beans and mung beans remains restricted to farmers who received payments last year, due to overproduction concerns. Final payments will be made after inspections by the National Agricultural Products Quality Management Service by the end of 2026.

The Ministry of Agriculture, Food and Rural Affairs announced the start of applications for the 2026 strategic crop direct payment program from February 23. This program supports farmers cultivating strategic crops in rice paddies to boost food self-sufficiency, stabilize rice supply and demand, and improve paddy utilization. New crops added for 2026 include rice for supply management, alfalfa, buckwheat, and sorghum, with increased payment rates for summer forage crops, corn, and sesame. Intercropping incentives have also been expanded to include more summer crops. Applications for winter crops run until April 3, and for summer crops until May 29, with online application options introduced this year. The program aims to reduce crop oversupply risks and encourage diversified crop production to strengthen food security.

The Ministry of Agriculture, Food and Rural Affairs of South Korea announced the 2026 Grain Supply and Demand Plan, reducing the rice planting area by approximately 38,000 hectares to 640,000 hectares to balance supply and demand. The plan includes strategic crop targets with 90,000 hectares allocated for key crops such as legumes, summer forage, and powdered rice, alongside support for alternative crops like sesame and corn. To address concerns over soybean supply, the Ministry will adjust direct payment schemes to manage cultivation areas for specific soybean varieties and consider public reserve rice allocations for farmers shifting back to rice. This marks the first comprehensive grain supply and demand plan following the Grain Management Act revision, emphasizing preemptive control through collaboration among producers, consumers, and experts. The Korea Federation of Agricultural Cooperatives defended the government's rice price stabilization efforts, highlighting the effectiveness of supply management policies in maintaining stable rice prices and urging balanced media coverage.

The Ministry of Agriculture, Food and Rural Affairs of South Korea has established the 2026 Grain Supply and Demand Plan to balance rice supply and demand, setting the rice cultivation area at approximately 640,000 hectares, a reduction of 38,000 hectares from the previous year. The plan also designates about 90,000 hectares for strategic crops, including legumes, powdered rice, summer forage, corn, and sesame, with specific targets for each. The Ministry emphasized the importance of managing soybean cultivation areas to stabilize supply and demand, considering direct payment incentives for baektae and kongnamul soybeans to encourage balanced production. This plan aligns with the revised Grain Management Act, effective August 27, 2026, which expands supply and demand planning to total grains and mandates public-private committee reviews. Additionally, the Ministry is advancing the Food Industry Innovation Strategy, focusing on public-private cooperation, efficient production based on consumer preferences, strengthening grain distribution, and expanding demand to improve food self-sufficiency and industry value.

The South Korean Ministry of Agriculture, Food and Rural Affairs has set the 2026 rice cultivation area at approximately 640,000 hectares, down by 38,000 hectares from last year, to balance rice supply and demand. Despite the reduction, rice production is expected to exceed demand due to a slower decrease in cultivation area compared to consumption. The strategic crop cultivation area will expand significantly from 61,000 to 90,000 hectares, with key targets including 320,000 hectares for beans and 210,000 hectares for rice designated for supply control, a new category introduced for emergency use. Concerns over soybean overproduction have led the ministry to restrict direct payment eligibility to previous participants and consider incentives for farmers returning to rice cultivation. The 2026 grain supply plan follows the revised Grain Management Act, broadening government oversight to all grains and emphasizing collaborative policy development with stakeholders to enhance food self-sufficiency and industry value.

The United Nations Food and Agriculture Organization (FAO) reported a 0.4% decline in the global food price index in January 2024, marking the fifth consecutive monthly decrease and a 0.6% drop compared to January 2023. Prices for dairy products, meat, and sugar fell, driven by declines in cheese, butter, pork, and sugar due to increased production in India and Brazil. Conversely, cereal and oil prices rose, with rice prices increasing and palm and soybean oil prices climbing due to seasonal production slowdowns and reduced South American exports. Beef and lamb prices remained stable, while poultry prices saw an uptick. These mixed trends reflect shifting supply and demand dynamics across key agri-food commodities.

The International Maize Foundation, in collaboration with Handong University, Kyungpook National University, and the Mongolian Plant Agriculture Science Research Institute, has developed a new corn variety named 'Daehongdan Kangnaengi' tailored for North Korea's highland environment. This variety was created by crossbreeding genetic resources from the North Korean Agricultural Science Institute with traditional corn varieties from Mongolia, Russia, the United States, Canada, and Pohang black corn. Daehongdan Kangnaengi is designed to withstand low temperatures, drought, and resist major diseases and pests such as corn borer and leaf spot. The foundation's director, Kim Soon-kwon, highlighted its potential to contribute to stable food and livestock feed supplies in North Korea, contingent on improved inter-Korean relations.