Average income of S. Korean farming households to edge up this year

SEOUL, Jan. 21 (Yonhap) -- The average income of South Korea's farming households may edge up 1.2 percent on an annual basis this year to 31.66 million won (US$23,025), a report by a state-run think tank said Wednesday.

The Korea Rural Economic Institute (KREI) said its prediction is based on the
sharp drop in global grain prices and raw materials that are used in making feed
and fuel for farm equipment.
It said the drop in grain and fuel prices may contribute to a rise in income of
6.7 percent from 2008, although this could be cut by a drop in demand due to the
domestic economic slump and drop in non-agriculture related-business earnings.
Many farmers engage in small-time business activities in areas such as sales and
menial labor to supplement their incomes.
The think tank added that total production of the country's farm products may
fall 1.3 percent from 2008 to 37.39 trillion won.
In 2008, the income of farming households fell 2.1 percent on-year to 31.31
million won worth of production as international grain prices soared to record
levels.
The KREI, meanwhile, said that rice and meat output will probably fall this year,
with production of vegetables and fruits to rise.