Farmland Pension Subscription Conditions and Application Method
In this article, we will understand the concept and advantages of farmland pension, and look at the conditions for joining and how to apply.
This is the table of contents of the farmland pension.
farmland pension
1. What is Farmland Pension?
Farmland Pension is for subscribers over the age of 60 to receive a monthly contract payment in the form of an annuity with the farmland they own as collateral. The farmland pension is calculated based on the farmland price at the time of subscription. At this time, the pension that can be received is calculated by choosing either the official land price or the appraisal price of the land. Farmland Pension is evaluated as an innovative product that contributes to farmers’ livelihood stability. So, even if the price of farmland rises or falls, you can receive the promised amount every month based on the amount at the time of subscription. In addition, if the applicant dies, it can be inherited by the spouse, so the couple can be guaranteed their old age together. 농지연금 가입조건
2. Subscription conditions 좋은뉴스
1) Applicant conditions
A farmer aged 60 or older, with at least 5 years of total farming experience
2) Target Farmland Conditions
ㅇ Designation must be farmland and actually being used.
The target farmland must be farmland owned by the applicant for registration, and farmland that is actually being used for farming as an orchard.
ㅇ There must be no restricted real rights in the registration.
The relevant farmland must not have rights such as provisional seizure, provisional disposition, or temporary lighting. For example, when the price of farmland is 100 million won, you can sign up if the maximum amount of the bond per mortgage is less than 15 million won.
ㅇ Excluding husband and wife, farmland jointly owned by two or more persons
You can apply for farmland owned by you alone or jointly owned by your husband and wife. However, you cannot apply for farmland jointly owned by a third party other than yourself or your spouse. This is because it may infringe on the property rights of others.
ㅇ Excluding farmland in areas where development plans have been finalized
ㅇ If there are tombs or farmhouses, they are excluded from the area for calculation.
3. Application method and payment method
You can visit the farmland bank in person or apply online at the integrated farmland pension portal (www.fbo.or.kr).
1) Individual publicly announced land price, appraisal amount
As for the appraisal price of collateral farmland, you can choose either 100% of the individual publicly announced land or 90% of the appraisal price.
2) Life sentence, term sentence
The life sentence means that the pension is paid until the applicant dies, and the term type means that the applicant chooses a period of 5, 10, or 15 years to receive the pension.
3) Fixed term for life, before and after thin, temporary withdrawal
Life sentences are divided into fixed-term fixed-term sentences for life, back-and-forth sentences, and temporary withdrawal sentences. The fixed amount for life is to receive a certain amount every month until death, and the before and after is to receive a larger amount during the first 10 years of subscription than for the remaining period. The lump sum withdrawal type means that you can withdraw up to 30% of the loan limit first.
4) fixed-term fixed-term, management transfer
The fixed-term type means receiving a certain amount every month for a certain period of time, and the management transfer type is a product in which a larger amount is paid than the fixed-term fixed-term type, but it is an agreement to sell the collateral farmland to the Corporation when the payment expires.
(Life imprisonment) ① fixed amount for life (a certain amount is paid every month until death), ② later and later payments (more payments during the initial 10 years of subscription), ③ temporary withdrawal (withdrawals up to 30% of the loan limit)
(periodic type) ① Fixed-term fixed-term payment (a certain amount is paid monthly for a certain period of time), ② Management transfer-type (agreement to sell the collateral farmland to the corporation after payment expires, receiving a larger monthly payment than fixed-term fixed-term payment)
4. Advantages
1) Stable payment guaranteed by the government
The farmland pension is guaranteed by the government and is stably paid out of the government budget. Both spouses can receive it, and it can be paid for life.
2) The amount disposed of is less than the pension paid, and no separate claim is made to the heir
When repaying pension obligations, the remaining amount after disposing of the collateral farmland is paid to the heirs, and if there is a shortage, the heirs are not charged. For example, let’s assume that A, who held a farmland pension as collateral for land with an appraised value of 100 million won, died while receiving 80 million won as a pension, and sold the farmland for 60 million won. In this case, the farmland pension would be given an additional 20 million won. This damage is extinguished without claiming to the heirs.
3) 100% property tax exemption for farmland worth KRW 600 million or less
Property tax is 100% exempted for farmland worth 600 million won or less, and if it exceeds 600 million won, up to 600 million won is included in the reduction. As a result, the tax burden is less.
4) Easy sign-up, contract cancellation and re-registration
During the contract period, if farmland is sold or ownership is transferred by inheritance or gift, the contract can be terminated. In addition, since re-registration is possible after termination, the person who owns the farmland can freely make decisions.
5) Additional income through self-management or leasing
Among the prerequisites for receiving a pension, the farmland must be actually operated. You must farm the farm yourself or lease it to someone else so that the farmland can be used for its original purpose. Receive a pension and additionally farm Additional income can be generated through production activities.
6) Possible to receive overlapping benefits with other pensions
Farmland pensions can be paid up to KRW 3 million per month per person. If a couple prepares a farmland pension together, they can each receive a pension of 3 million won, up to a maximum of 6 million won. Above all, it has the advantage that it can be paid overlapping with other pensions such as the national pension, public servants pension, military pension, and teacher pension.
5. How to choose farmland that receives a lot of farmland pension
ㅇ Farmland with a lower price than the individually announced land price
ㅇ Farmland where deregulation is expected
ㅇ Farmland with high future value
If you can get the above farmland at a lower price than the market price, it is a good condition to receive a farmland pension.