2015-06-09
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Chang-Gil Kim
FFTC-APAARI-COA-TDARES International Training Course on SUF (11th of May, 2015, 14:00-15:00)
KCG’s Profile
Name: Kim Chang-gil Department: Dept. of Natural Resource an
Environment Research, KREI Position: Research Director Contact: 82-2-3299-4265 (HP:82-10-9447-4265) E-mail: [email protected]
<Education Background> - Ph.D. in Agricultural Economics from Oklahoma State University,
USA
<Research Areas> - Sustainable Agriculture Development - Agricultural and Environmental Resources Management - Climate Change and Green Growth
<Major Careers> - Chair, JWP on Agriculture and the Environment in OECD - Executive Board Member, Korea Env. Economics Association
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Contents
I. Introduction
II. Diagnosis of the Environmental State in Agricultural Sector
III. Eco-Friendly Agriculture Implementation Status
IV. Policies for Promoting Eco-Friendly Agriculture
V. Approach to Agr-Environmental Resource Management
Ⅵ. Conclusion
★ After this presentation, you will be able to
☞ Understand backgrounds and meaning of environment-friendly agriculture (EFA) in Korea
☞ Understand current status of agro-environment, EFA and policy programs
☞ Share the information on agri-environmental resource management
☞ Learn about the method for analyzing environmental problem in agricultural sector using nutrient balance indicator
Objectives of KCG’s Keynote Presentation
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I Introduction
Relationship between agriculture and environment
- Positive role of environmental preservation
- Negative role of being a potential environmental pollution
source
Features of Korean Agriculture
- Implementing a core policy for increasing food
production in order to support its large population on
limited land
- Intensive ‘high input-high output’ agricultural method
- Intensive and specialized livestock production
- Deterioration of agricultural environment
Problem Statement
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Fostering environmentally-friendly agriculture
- EFA seeking harmony between agriculture and the
environment
- Defined EFA as simultaneously seeking to secure profitability, ecosystem preservation, and safety
- Technically, non-use (organic) or minimal use (pesticide free, low pesticide) of agri-chemicals; Recycling of agricultural and livestock by-products
- Established institutional framework (Dept of Sustainable Agriculture in the MFAFF in Dec. 1994, Enactment of EFA Promotion Act in 1997, Implemented the 5-year Plan for EFA every five years since 2001)
Externalities in the agricultural sector
- Costs are often neglected and often occur with a time lag
- Affecting groups whose interests are not well represented in political or decision-making process
- Identifying the source of the externality is not always known
Negative externality drawn from environ challenges
- They are usually non-market effects and therefore their costs are not included in market prices
-As the polluter does not full cost of their actions, so there are no rational incentives to reduce negative externalities
→Many agricultural systems suffer by undermining key natural assets that they require to be successful
Background Information
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Interpretation of Sustainable Agriculture
- Focusing on types of technology in particular settings,
especially strategies that reduce reliance on non-
renewable or environmental harmful inputs
- Including eco-agriculture, organic, ecological, low-
input, biodynamic, environmentally-friendly,
community-based
- Agricultural system viewed in terms of resilience (the
capacity of systems to buffer shocks and stresses) and
persistence (the capacity of systems to carry on)
→ Three dimensions of SA concept such as ecological,
economic and social aspects
Conceptual Framework of Sustainable Agriculture
Economic
Aspect Social
Aspect
Ecological
Aspect Sustainable Agri
Conventional Agri
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Agri–Resources Management System for Sustainable Agri
Crop Livestock Micro-
organism
Bio–Environmental Resources Use
Ecosystem
Animal microbes
Soil · Water · Air
Optimal Resources
Management
• Sustain Agri- production • Profitability Increasing
• Multifunctional Increasing
Regulatory Approach
- Direct regulation to reduce point source pollution
- Minimum standards for various treatment technologies or minimum performance standards based on actual emission level
- Ban on the production and application of some agro-chemicals
Economic Incentive Approach
- Incentives (payments to farmers) designed to encourage environmentally beneficial activities or disincentives (tax) discourage environmentally harmful activities
- Environmental subsidies or taxation (or charges), tax concessions
- Tradable permit system (pollution permit)
Effective Instruments for SAD Policy Programs
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Cross-Compliance Approach
- Cross-compliance means that a farm’s operational management has to meet certain requirements in order for its owner to be eligible for assistance under government support schemes
- Income support dependent on meeting certain environmental and conservation objectives in the context of market and price policy
Advisory Approach
- Education and technical assistance to persuade farmers to voluntarily adopt less polluting practices
- Supplemental tool with regulation and economic incentives
Ⅱ Diagnosis of the Environmental State in Ag Sector
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Agri-Environmental Indicator (AEI)
- Representative values for explaining the reality among the environmental factors for agro-ecology system based on specified calculation method
- Utilized for the diagnosis of the environmental state
- Types of AEI: Soil resource, Water resource, Biodiversity, Atmosphere resource, Nutrients, Farm management
Agri-Environmental Indicator for the Environmental State Diagnosis
Diagnosis of environmental load in agri-ecology system using the nutrient balance indicator
- good shape of nutrient balance indicator drawn from properly managed agri-environmental resources
- excessive level of nutrient balance indicator interpreted as the deterioration of the agri-ecological environment
<Scheme of N i t rogen Balance Ind icator>
Diagnosis of the Environmental Load in Ag Sector
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I-O Framework for Material Cycling in Agro-ecosystem
Livestock feed (Concentrates, Roughages)
Fertilizers (Chemical, fertilizer,
organic fertilizer)
Livestock
Livestock manure
Cultivated land
Food crops
Livestock products
(Meat, milk, eggs)
Extra resource
By-products
Foods
[Soil, Water] Inorganic runoff, soil loss, erosion,
leaching, denitrification, water pollution, Agro-ecosystem deterioration
[Input] [Output]
Nutrients Balance Calculation
Livestock (Manure)
Farmgate Banance Regional Balance, National Balance
Fertilizers / Feedstuffs (N,P) Inputs
Cultivated land (Plant Uptake) Statistics
Nutrients Surplus
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<Changes in Nutrient Balance of the Arable Lands in Korea>
Nutrient
Requirement
(A)
Total Nutrient Supply
[Nutrient Balance]
Excessive Nutrient
(A-B)
Nutrient
Excess Rate
(%)
(A-B)/A (B)
Chemical Fertilizer
Supply
Livestock Manur
e
Supply
Year N P N P N P N P N P N P
1990 112.1 56.4 242.3 108.8 211.9 90.5 30.4 18.2 130.2 52.4 116.2 92.9
1995 118.5 58.6 237.1 111.7 190.5 83.2 46.5 28.5 118.6 53.2 100.1 90.8
2000 120.5 59.7 240.4 102.8 189.4 73.8 51.0 29.0 119.9 43.1 99.5 72.2
2004 121.5 59.4 249.9 106.1 191.8 73.1 58.1 33.0 128.5 46.7 105.8 78.6
2009 120.3 59.9 199.7 87.7 140.2 54.6 59.5 33.1 79.4 27.8 66.0 46.4
2012 120.7 58.5 221.4 88.3 152.7 49.6 68.7 38.7 100.7 29.8 83.4 51.0
2013 120.1 59.2 221.1 88.0 152.6 49.6 68.5 38.4 101.0 28.8 84.1 48.6
Units: kg/ha, %
Materials Cycling Structure in the Agro-Ecological System in Korea (2013)
Concentrates (16,010K tons)
Roughages (4,130K tons)
Chemical fertilizer
(350K tons)
N: 260K tons
P: 90K tons
Livestock Beef cattle 2,920K heads Dairy cattle 480K heads
Pig 9,910K heads Chicken 151,340K heads
Livestock manure (35,320K tons)
Purification (3,990K tons)
Compost/liquid fertilizer
(30,860,000 tons)
Crop cultivated land (1,730K ha) Total amount of fertilizer component :
540K tons (N: 380K tons, P: 150K tons)
Inorganic runoff and deposition Surface water/ground water
(Fertilizer component: 230K tons
crops
Livestock products
Meat Milk Eggs
Crop production
Food crop 5,520K tons Oilseed crop 210K tons Vegetable 9,580K tons
Fruit 2,590K tons
Nutrient absorption (310K tons)
N: 210K tons P: 100Ktons
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Provincial Distribution of Nutrition Surpluses
<Nitrogen Balance> <Phosphorus Balance>
Environmental deterioration from “high input – high output” in agricultural production system
- Excessive use of chemical inputs
- Intensive large-scale livestock production based on imported feed
Nutrients surpluses of cultivated land, runoff potential of inorganic compounds, surface/ground water pollution
Need for special measure for managing nutrients
surpluses in cultivated land
Environmental Problems in Agricultural Sector
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Status of Nitrogen Balance Indicator in OECD (1992)
■ 1st Netherland (345kg/ha), 4th Korea(213 kg/ha)
Status of Nitrogen Balance Indicator in OECD (2004)
■ 1st Korea (240 kg/ha), 2nd Netherlands (213 kg/ha)
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III Eco-Friendly Agriculture Implementation Status
Rapidly Increasing Env-Friendly Farming Practices
- Annually about 55% increase in env-friendly farming area from 2000 (2,039ha) to 2014 (100,046ha)
- Comprising 5.9% of total farmland area
- Certified env-friendly products in 2014
: 18.3% in organic, 66% in non-pesticide (chemical-free product), 16.7% in low-pesticide
- Regionally quite difference in EFA practices
Current Status of EFA Production
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Certification System of EFA Products
Organic Agri-Product (Agricultural products for which organic synthetic agrochemicals and chemical fertilizers are not used. Organic Livestock: Livestock for which antibiotics/ antimicrobials are not used and organic feed are fed.
Non-pesticide Agri-Product (Chemical free agri-product)
* Agricultural products for which organic synthetic agrochemicals are not used and chemical fertilizers are used below 1/3 of recommended level
* Antibiotics-free livestock: Livestock for which antibiotics/antimicrobial-free feeds are fed
Changes in Eco-friendly Agricultural Product Certification Records by Year
2000 2006 2008 2010 2012 2013 2014
Org
an
ic
Farming households (house) 353 7,167 8,460 10,970 16,7333 13,963 11,633
Area (ha) 296 8,559 12,033 15,518 25,467 21,210 18,306
Shipping (ton) 6,538 95,405 114,649 122,243 168,256 119,290 95,694
No
-pestic
ides
Farming households (house) 1,060 21,656 45,089 83,136 90,325 89,992 56,756
Area (ha) 876 18,066 42,938 94,533 101,657 98,233 66,061
Shipping (ton) 15,694 320,309 554,592 1,039,576 841,543 691,238 479,441
Lo
w-p
estic
ides
Farming households (house) 1,035 50,812 119,004 89,992 36,025 22,797 16,776
Area (ha) 867 48,371 119,136 83,955 37,165 22,209 16,679
Shipping (ton) 13,174 712,380 1,519,070 1,053,702 488,466 370,898 250,348
To
tal
Farming households (house) 2,448 79,635 172,553 183,918 143,083 126,752 85,165
Area (ha) 2,039 74,995 174,107 194,006 164,289 141,652 100,046
Shipping (ton) 35,406 1,128,093 2,188,311 2,215,521 1,498,235 1,181,426 825,482
Unit: household, ha, ton
Source: National Agricultural Products Quality Management Service (2015).
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Price Premium of EFA Products
Price Difference between EFAP and Conventional AP(CAP)
- Green Onions: 200%, Cucumber and Tangerines: 180%, Rice: 160% Lettuce and Tomato: 150%
3,510
11,333
13,575
3,196
10,596
6,142 5,171
2,194
7,155
8,730
1,574
5,783
4,118
2,840
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Rice Lettuce R-Pepper Green Onion Cucumber Tomato Tangerines
EFAP
CAP
Unit: KRW
160%
160%
160%
200%
200%
150% 180%
Structure of Marketing Channel in EFAP
P R O D U C E R
Prod Corp |
Reg Ag Corp Ag Corp Body
EFA Corp Body
Depart-Store Super Mart
Organic Mart
Internet Shopping
Consumer Corp
Direct Marketing
C O N S U M E R
Wholesale Mart
Food Process Co
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Status of EFA Product Distribution
Types Major Sources of Distribution Proportion
Rate(%)
Direct Marketing Farmer-to-Consumer, Internet 10-20
Producer Organization Organic Farmers Corp, NACF’s Hanaro Club and Mart
40-45
Consumer Organization Consumers’ Corporative Federation, Hansalim,
15-20
EF Distribution Stores Dept Stores, Large Scale Discounting Store, Special Organic Store
25-30
Marketing Channel of EFA Products
- direct transaction with consumers (10-20%), producers’ organization (NACF) and consumers’ cooperatives (40-50%), special distributors and department stores (25-30%)
Size and Projections for EFA Products Market
Market Volume of EFA Products
- KRW 4,862 billion (USD 45.0 billion) in 2014
Hundred million won
Abolitin of low pesticides certification
system
6.6 trillion
5.3 trillion
4.6 trillion
3.6 trillion
1.8 trillion
1.4 trillion
0.3 trillion
3.2 trillion
1.4 trillion
0.5 trillion
5.5 trillion (84%)
1.0 trillion (16%)
Organic
cultivation No pesticides Low
pesticides All
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IV Policies for Promoting EFA
Vision for EFA Promoting
Vision and Goals of Promotion Policies for EFA
- Setting a vision for promoting the environmentally friendly agricultural policies as “improving the quality of life of the peoples by fostering harmony between agriculture and environment”
- Four strategies for a successful transition to EFA system ① establishment of a regional agricultural system that recycles
resources based on 3Rs (Reduce, Recycle, and Reuse) ② switching from “maximized production” to “optimized production”
in consideration of agricultural and environmental capacity of the region
③ based on scientific analysis on environmental resources for agriculture
④ proper integration among policy supports, environmental regulations and compensation systems
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<Vision and Goals of Promoting EFA in Korea>
35
Development & Use of Bio.
Environmental Resources
Soil · Water · Air
Support
ㆍ
Control
ㆍ
Compensation
System
Crop Livestock Useful
Microorganism
Microorganism Animals
Ecosystem
Mitigation of
GHG
Preservation of
Agricultural
Ecology
System
Securing of
Agricultural
Safety
Maintenance of
Profitability
Enhancement
of quality of
life of people
·
Harmony
between
agriculture
and
environment
Optimum
Agri-Env.
Resources
Management
Vision Establishment of Environmental-Friendly Green Industry
: Nature and People Together
Core
Values
Environmental-Friendly Agriculture for Farmers’ Wellbeing
Environmental-Friendly Agriculture for Consumers’ Happiness
Environmental-Friendly Agriculture for Natural Environment Health
Policy
Targets
Env-Friendly Agriculture Cultivating Acreage: 4.9% (2009) 15% (2015)
Consumption of Chemical Fertilizers/Pesticide : 15% Reduction by 2015
Consumption of Chemical Fertilizer : 242kg/ha (2009) 205 (2015)
Consumption of Pesticides : 9.9kg/ha (2009) 8.4 (2015)
Market Volume of Organic Foods : KRW 550 billion KRW 2 trillion (2015)
Core
Tasks
Establishment of Sustainable Eco-Friendly Production Base
Promoting Distribution and Consumption of Eco-Friendly Ag Products
Establishment of Safety Management System for Consumers’ Confidence
Promoting Processing and Agricultural Input Industry
Promoting Eco-Friendly Agricultural Technology and Human Resources
Establishment of Agricultural Resources Management System
Promoting EFA, Livestock, Forestry and Fisheries Industry
<Scheme to Implement of the 3rd 5-Year (2011~2015) EFA Promotion>
Policy Based Projects by Sectors for Fostering EFA
Five-year EFA Fostering Plan
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Policy Based Projects by Sectors for Fostering EFA
Eco-Friendly Agriculture Base Establishment Project
- In order to promote the growth of EFA by establishing its production base in pursuit of co-management of the agricultural activities such as production and distribution at the grouped fields or farmland, inducing lesser use of pesticides and chemical fertilizers, and lesser production cost
- Applicable to farmers or producer groups (villages or more than 10 hectares with more than ten farmhouses participating in the farming).
- Subsidies of this project by village unit for purchasing production facilities and equipment of agricultural materials,
product distribution, and education for EFA
- Subsidies are granted differentially between KRW 100 million (USD 925,926) and KRW 3 billion (USD 2.78 million) per business unit, according to the scale and conditions of the business
Policy Based Projects by Sectors for Fostering EFA
Direct Payment System for EFA - Aimed at fulfilling public functions of agriculture such as
environmental conservation, and spreading the EFA by preserving the difference if the agricultural income is less than the reference income, or the production cost is bigger than the reference cost at an early stage of the EFA
- Direct payment applied differentially depending on the
certification level and whether the farmland is either rice paddies or uplands, and the land limit of provision is between 0.1 to 5.0 hectares
- Direct payment per hectare for upland is KRW 1.2 million (USD 1,111) for organic cultivation and KRW 1 million (USD 926) for no-pesticide cultivation. Direct payment per hectare for rice paddies is USD 1,059 for organic cultivation and USD 620 for no-pesticide
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Policy targets and payment levels of the Direct Payment System for EFA
Unit: USD/ha
1999-2002 2003 2004-2011 2012~Current
Policy
targets
Upland: low-pesticide1)
Paddy: no-pesticide1
Env-regulating area: over low-
pesticide1
low-pesticide1 no-pesticide1) no-pesticide1)
Payment
level
$485/ha
(same unit amount of payment
in upland and paddy fields)
Upland
organic :$735
no-pesticide: $624
low-pesticide: $485
Paddy2)
organic: $713
no-pesticide: $602
low-pesticide: $643
Upland
same as in 2003
Paddy2)
organic :$763~856
no-pesticide: $684~777
low-pesticide: $601~694
Upland
organic : $1,111
no-pesticide:$ 926
low-pesticide: $485
Paddy2))
organic :$1,019
no-pesticide: $620
low-pesticide: $340
Notes: 1) The scope of “low-pesticide” in policy targets denotes the certified environmentally friendly farmers who meet the low-pesticide standard, or exceed the standards specified by no-pesticide and organic farming methods. Similarly, "no-pesticide" is specified as an upper stage, which covers no-pesticide and organic farmers, but not low-pesticide farming.
2) The basic payment for paddy is provided at $463; this is topped up by incentive payments of $250 for organic or trans-organic production, or $139 for no-pesticide production.
Source: MAFRA (2015).
Biological Disease and Harmful Insect Prevention Project
▶Pest Control Program Using Natural Enemies
- Supporting 9 crops for natural enemies in greenhouse horticulture such as strawberry, tomato, red-pepper, bell-pepper, cucumber, melon, and grape
▶Microorganism Project for Biological Insect Prevention
- Supporting 10 crops: strawberry, tomato, chilies, bell -pepper, cucumber, watermelon, pumpkin, lettuce, water flavoring parsley, perilla and cabbage
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Eco-Friendly Fertilizer Support Project
Eco-Friendly Fertilizer Support Project is divided into the Organic
Fertilizer Support Project and the Soil Conditioner Assistance
Project
▶ Organic Fertilizer Support Project
- Promoting resource recovery through the recycling of by-products from agriculture, forestry and livestock industry
- Supporting for organic fertilizers such as fixed press cake fertilizer, fixed organic fertilizer and organic composite fertilizer
- Supporting for by-product fertilizers such as livestock manure compost and general compost
▶ Soil Conditioner Assistance Project
- Improving acidic soil and farmland soil with a low effective silicic acid content through the input of soil conditioners (i.e., lime and silicic acid)
- Soil Improvement and Preservation Project based on Article 20 of the Farmland Act
- Supporting for Paddy field with an effective silicic acid content of less than 130 ppm and fields with volcanic acid
- Supporting lime for fields with acidity of less than pH 6.5 and farmland with heavy metal pollution
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Policy Based Projects by Sectors for Fostering EFA
EFA Products Distribution Activities and Consumption
Promotion Project
- Financial support for direct transaction
- Education of producer and consumer organizations
- Expansion of the installation of specialized stores
- Eco-labeling certification system
- Supporting school meals using the EFA products
- Supporting processing EFA products
Agricultural Water Quality Improvement Project
- Establishing a clean water supply base and creating a pleasant living environment for rural areas
- Supporting for agricultural reservoirs in which the qater quality exceeds the ‘somewhat bad’ grade from living environmental standard for lakes and marshes based on the Basic Act of Environmental Policy handled by Korea Rural Community Cooperation
Livestock Manure Treatment Support Project
- Fostering eco-friendly livestock industries including the prevention of water quality pollution and the preservation of the living environment through resource and energy recovery (making compost and liquid fertilizers from livestock manure)
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V Approaches to Agri-Env Resou Management
Utilizing and Management of Agri-Env Information
- AEI: information regarding environmental elements such as soil,
water, air, etc., which compose the agricultural system; organic connection and comprehensive combination of each element
- Korean Soil Information System developed by Rural
Development Administration: http://soil.rda.go.kr/eng/
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Utilizing and Management of Agri-Env Information
- Comprehensive Livestock Manure Information System developed by National Institute of Animal Science: http://www.nias.go.kr/envi/main.nias
- Agricultural Research and Extension Service of Gyeonggi-do
operates the agri-environmental Information System for providing agricultural weather information and forecasts the occurrence of disease and harmful insects on a real time basis:
http://www.epilove.com/ - Online rural agricultural water and resources information created
by the Korea Rural Community Corporation https://rawris.ekr.or.kr/RawrisMIS/Default.aspx
- Environmental Valuation Information System (EVIS) providing
database for research results on environmental valuation conducted by the Korea Environment Institute: http://evis.kei.re.kr/index.jsp
Management Using Agri-Env Resources
- Comprehensive management related to agricultural environmental resources, which consist of environmental elements such as soil, water, air, etc., in an environmentally friendly way and manage them effectively
- Establishing the foundation for comprehensive management of
agricultural environmental resources and connected dispersed management functions in a mutual and organic way by utilizing information technology
- Water resources: initiatives for comprehensive water
management taking into account irrigation, flood control, and water quality simultaneously, while systemic database setting up by collecting water resources-related information
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Establishment of AE Management Infrastructure
- Building up the database of pertinent indicators regarding agri-environmental changes by land type, preparing an agri-environmental pollution map utilizing GIS, and the establishment of an environmental load monitoring system.
- Need for efforts on expanding the agri-environmental education base for the officials in charge of government policy, including local governments
- Developing tailored eco-friendly agriculture technology, the development and enacting of the tailored Best Management Program (BMP) such as regional resource circulation system and organic cultivation-livestock industry
VI Conclusion
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Concluding Remarks on EFA
Significances of EFA
- EFA as an important task of our age in order to activate healthy sustainable agricultural system
Evaluation of current status of EFA in Korea
-Quantitative aspect: remarkable growth in EFA production
-Qualitative aspect: surplus problem of farmland nutrients, weak of agro-environmental resource management
Core tasks for establishing EFA and SA system
-Need for systematic agri-environmental resources management
- Tailored optimum management methods (BMP) by area
- Establishment of control mechanism regarding to all of the agri-environmental related work
- Smart nutrient management including fertilizer and livestock manure for improving crop production and soil conservation
☞ Key to success of EFA activation depending on smart nutrient management
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