Gov't to inject 5.7 tln won into farm equipment industry

SEOUL, Dec. 30 (Yonhap) -- The government said Tuesday that it will inject 5.7 trillion won (US$4.5 billion) over the next four years into the local agriculture equipment industry to build competitiveness and fuel farm exports.

The fresh funds are aimed at expanding the farm equipment businesses by 34
percent and doubling exports by 2012, the Ministry for Food, Agriculture,
Forestry and Fisheries said.
"If all goes well, the size of the local farm equipment industry could reach 8.3
trillion won in the target year from 6.2 trillion won in 2007, with exports to
top $1.8 billion from around $800 million," a ministry official said.
He claimed such growth will help hire 34,000 workers from the 26,000 engaged in
this field at present, while imports can be reduced by 2.1 trillion won on an
annual basis by locally manufacturing those products.
The plan earmarks 1.9 trillion won for research and development (R&D), with 380
million won to be offered as loans. Money will also be injected into the
country's Farmland Bank that buys land from cash-strapped farmers and the
National Agricultural Cooperative Federation to start a full-fledged rental
operation for expensive farm equipment.
The ministry said particular attention will be given to R&D to build eco-friendly
engines for smaller farm tractors, combines and other equipment in high demand in
countries like the United States. The country sells an average of $400 million
worth of farm equipment every year.
Other endeavors that can benefit from the fresh funds are programs encouraging
farmers to use organic fertilizers and the creation of improved seeds for crops
to be sold abroad.
yonngong@yna.co.kr