2023 Farmland Pension Conditions, Calculation, Received Amount, Cancellation, Find out how to apply
Before applying for farmland pension, seniors living in the city can receive the housing pension system in the name of the house they own.
More details can be found through the link below.
👉 Housing Pension System
The Farmland Pension is a system aimed at securing and maintaining the social safety net of rural communities by providing liquidity to farmland to support the stability of elderly farmers who lack funds for retirement living.
However, despite these systems, many farmers are often unaware of farmland pensions. 농지연금 수령액 계산
Today, we will look into Farmland Pension, which supports aged farmers so that they can lead a stable retirement life. 좋은뉴스
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1 What is Farmland Pension?
2 Advantages of Farmland Pension
3 Disadvantages of Farmland Pension
4 Farmland pension subscription requirements
4.1 Age Requirements
4.2 Farming experience
4.3 Target Farmland
5 Farmland Pension Payment Method
6 Eligible age for subscribing to farmland pension by payment method
7 Farmland Pension Receipts
8 Required Documents for Farmland Pension
9 How to apply for Farmland Pension
10 Termination of Farmland Pension
11 Conclusion
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What is Farmland Pension?
farmland pension
farmland pension
This system is an old-age life stabilization fund in which elderly workers aged 60 or older receive monthly pensions by using their farmland as collateral.
Advantages of Farmland Pension
While receiving a farmland pension, you can earn rental income by directly farming or leasing, and if you pay off your debt using the farmland pension system, you can receive the balance of farmland pension by disposing of and repaying the collateral farmland.
Farmland with a value of less than 600 million won can receive a full reduction in property tax, and in the case of more than 600 million won, only up to 600 million won is subject to reduction and exemption, and property tax must be paid only for the excess amount.
In addition, if you sign up for the Farmland Pension Keeper Account, you can be free from foreclosure of up to 1.85 million won per month.
Finally, if the farmland owner dies, the spouse can inherit the farmland pension and receive the pension until death.
Disadvantages of Farmland Pension
Since the farmland pension is set at 90% of the official land price or appraised value, it is set lower than the actual transaction price.
In addition, the land price continues to rise, but the annuity amount initially set remains the same throughout life.
Farmland Pension Subscription Requirements
age requirement
The farmland owner must be at least 60 years old, and in 2023, only those born before December 31, 1963 are eligible.
farming experience
At least 5 years of agricultural experience as of the date of application is required, as long as the total duration is at least 5 years.
target farmland
Applicants must own farmland in use as fields, rice fields, orchards, and have held it for at least two years.
Also includes inherited farmland, which must be located within a straight line distance of 30 km from the applicant’s address.
※ Applicable only to farmland newly acquired after January 1, 2020, and straight-line distance to the point within 30 km.
In addition, it is possible if there are no restricted real rights such as mortgages and the maximum amount of senior bonds is less than 15/100 of the collateral price.
👉Check conditions for farmland pension subscription
Farmland pension payment method
There are two types of farmland pension: life-term and term-type.
Life sentences receive an annuity until death, while term sentences allow you to receive benefits for a certain period of time.
Lifetime fixed amount type: A type that pays a certain amount every month until the death of the subscriber (spouse)
Back-and-forth type: Received more than the flat-rate type during the first 10 years of subscription and less from the 11th year
Occasional withdrawal type: A type in which the necessary amount can be withdrawn at any time within 30% of the total payable amount
Fixed term type (5 years/10 years/15 years): A type in which a certain amount is paid every month for a certain period of time selected by the subscriber
Management transfer type: At the end of the payment period, a type of receiving more pension on the premise of transferring ownership to the corporation
Eligible age for subscribing to farmland pension by payment method
Life imprisonment/management transfer: 60 years of age or older
Fixed-term fixed-term (5 years): 78 years of age or older
Fixed-term fixed-term (10 years): 73 years of age or older
Fixed-term fixed-term (15 years): 68 years of age or older
Farmland Pension Receipt
The monthly payment amount varies depending on the price of secured farmland and the payment period. The higher the subscription age, the higher the price of secured farmland, and the shorter the payment period, the more money you can receive.
Subscribers can choose 100% of the individually announced land price or 90% of the appraisal price for the price of secured farmland.
However, the monthly payment does not exceed 3 million won.
If you are curious about the expected amount of farmland pension, you can check the expected amount through the link below.
👉 Simulation calculation of farmland pension receipt
Farmland Pension Required Documents
A copy of your ID (including your spouse’s ID)
A certified copy of the register (limited to farmland subject to collateral)
Comprehensive real estate certificate (limited to farmland subject to collateral)
Agricultural Support Department or Agricultural Business Registration Confirmation
1 copy of consent form for appraisal request, etc. (including handwritten signature)
1 copy of appraisal fee payment request form (including handwritten signature)
Family Relations Certificate 1 copy
1 copy of resident registration (including address changes)
1 copy of certificate of seal impression and personal seal
1 copy of bankbook
certificate of registration
The documents required for farmland pension can be issued through the link below.
Online issuance of family relationship certificate
Online issuance of resident registration card, etc. (second)
Online issuance of land use planning confirmation
Online issuance of a certified copy of the Ministry of Agricultural Support
Online issuance of taxation certificate (property tax) by tax item
Online issuance of agricultural business registration confirmation (certificate)
Online issuance of certified copy of real estate (land) register
How to apply for Farmland Pension
Farmland pension application can be applied in person or through the Internet through the farmland pension portal homepage.
If you apply for membership, the staff in charge will contact you, and you can proceed with the procedure according to the consultation.
If it is difficult to submit documents online or by mail, it is recommended to apply in person.
👉Go to farmland pension application
Termination of Farmland Pension
You may need to cancel the farmland pension system when you need urgent money or want to pass down farmland to your children.
In this case, if the debt is not repaid, the farmland is disposed of through a random auction, and the remaining amount is returned to the subscriber or heir.
To cancel the contract, simply pay the total monthly payment plus a 2.0% fixed interest rate or a floating rate plus a 0.5% risk charge.
conclusion
So far, we have looked at farmland pensions that elderly farmers can receive.
Unlike cities, rural societies have a more vulnerable social safety net, and it is very important to stabilize the elderly farmers’ lives.
Therefore, it is an essential system for raising funds by liquidating farmland and for stable development of rural society.
If you have elderly parents aged 65 or older living in rural areas, I think that farmland pension, which is a stable fund for old age life by using farmland as collateral, is a system worth considering.