Conditions for subscribing to Farmland Pension and two ways to calculate the amount of receipt
Recently, when you look at the news or newspaper, you often hear news about farmland pensions. So, there are many people who are curious about whether they can be eligible and what alternative farmland pension is. 농지연금 가입조건
<Contents>
What is Farmland Pension?
Farmland Pension Calculation
Advantages of Farmland Pension
Disadvantages of Farmland Pension
Farmland Pension Subscription Conditions and Qualifications 좋은뉴스
How to apply for Farmland Pension
What is Farmland Pension?
Farmland Pension refers to a system in which elderly farmers receive stable funds for their livelihood in old age as a monthly pension by collateralizing their farmland. In 2022, as the age of 65 is lowered to 60, many people are interested.
Farmland Pension Subscription Conditions
Usually, if the assessed value of the land you own is 100 million won, you can receive about 400,000 won per month. The maximum amount that can be received is up to 3 million won per person if you own farmland of about 800 million won, and up to 6 million won when married couples combine.
Farmland Pension Calculation
There are a total of 5 ways in which farmland pension is paid, and there is a difference in the amount depending on the payment method.
You can calculate the farmland pension receipt on the Farmland Bank website.
https://www.fbo.or.kr/pesn/my/IqireForm.do?menuId=040020
When accessing the above site, the following screen appears. If you enter the owner’s date of birth and farmland price, you can easily find out the payment amount for each payment method.
Farmland Pension Calculation
Advantages of Farmland Pension
You must clearly know the pros and cons of farmland pension so you can decide whether to apply or not. Let’s look at the advantages and disadvantages of farmland pension below.
1. Married couple, lifetime payment
– If the farmer receiving the farmland pension dies, if the spouse takes over, you can continue to receive the farmland pension until the death of the spouse. (However, only if the spouse is over 60 years of age at the time of application for farmland pension and chooses to inherit the pension)
2. Farming and rental income possible
– While receiving farmland pension, you can directly cultivate or rent collateral farmland, so you can earn additional income other than farmland pension.
3. Securing stability through financial support
– Because it is hosted and implemented by the government, not a private company, you can receive a stable pension without bankruptcy.
4. Unclaimed pension debt shortfall
– When repaying the pension debt, the remaining amount is returned to the heir after repayment through the disposal of the collateral farmland, and no further claims are made even if there is a shortage.
5. Property tax relief
– Property tax for farmland under 600 million won is fully exempted, and farmland over 600 million won is exempted up to 600 million won.
Disadvantages of Farmland Pension
The biggest disadvantage of farmland pension is that it is a compound interest rate.
If you receive 2 to 3 million won per month as an annuity, it won’t make a big difference, but if you receive it as a lump sum, you may get more interest depending on the interest rate.
Therefore, it can be said that it is the correct answer to receive an annuity rather than receiving a lump sum at a time. It seems that you only need to pay attention to the benefits and apply.
Farmland Pension Subscription Conditions and Qualifications
1. Subscription age
– As of the last day of the application year, the farmland owner must be over 60 years of age.
2. Farming experience
– To prevent dumping, the applicant must have more than 5 years of farming experience.
– Farming experience does not have to be continuous, and it is possible if it is more than 5 years in total.
– If there is income other than agriculture, the income must be less than KRW 37 million per year.
3. Target farmland
– Among the farmland under the Agricultural Land Act, farmland that is owned by the project target and is used for farming as land, paddy field, orchard for government purposes
– Farmland owned by the project target for more than 2 years (inherited farmland including the period of holding by the ancestor)
– Restrictive real rights such as mortgages are not established, and there are no foreclosures, provisional foreclosures, provisional dispositions, etc.
– Farmland located within the city/gun/gu where the secured farmland is located or within a city/gun/gu adjacent thereto, or located within 30 km of the straight line distance between the address and the secured farmland
– Application is possible even if the applicant and his or her spouse jointly own it
<Farmland excluded>
1) Illegal building installation land
2) Farmland jointly owned by a person other than yourself and your spouse
3) Excluded farmland as set forth in the Farmland Pension Work Handling Guidelines, such as farmland in areas where development areas and development plans have been designated, implemented and announced, and confirmed
4) Farmland acquired through auction after January 1, 2018 (However, as of the date of application for farmland pension, if the applicant’s holding period of collateral farmland is more than 2 years and the address on resident registration is located within 30 km, collateral is available)
How to apply for Farmland Pension
How to apply for Farmland Pension
You can apply for Farmland Pension through the Farmland Bank website.
If you have any questions about farmland pension, call the Farmland Bank Integrated Counseling Center (1577-7770) between 9:00 am and 6:00 pm on weekdays and they will kindly consult you.
Today, we looked at a total of three things, including the conditions for joining the farmland pension, qualifications, and calculation of the amount received. It seems that many people are applying for the benefits because the conditions are not difficult and they can continue farming while receiving pensions. If today’s post was helpful, please hit the like button.