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6.28 Agriculture Policy on the Back Foot

Lee Sang Yong  |  2012-10-12 17:53
It appears that plans to use a handful of farms to road test the agricultural element of North Korea’s ‘June 28th Policy’ have been put on hold until next year due to difficulties with implementation. Under the plan, 30% of farm grain production plus any over-production was due to go to the farm itself, while 70% was to be procured by the state.

A Hyesan-based source explained today, “Cooperative farm cadres are saying that none of the experimental farms will be given 30% of their production this year because it has become difficult to meet the target. They are saying that the harvest is not good and they need to feed the military as a matter of priority, so first they’ll guarantee the military rice then give the rest to the farmers.”

A Shinuiju source corroborated the story, saying that the authorities “haven’t said they are going to take all the production from the farms, but nobody actually thinks they are going to get very much. People who trusted the official words are feeling quite stupid, and nobody is working very hard.”

Back in July, each province designated a number of ‘model farms’ that were to be used to test the policy. These farms were supposed to receive their initial inputs of fertilizer and machinery from the state, and then be given 30% of their production in return.

“They are saying that the state does not have enough rice right now and that there is no choice but to give it to the military, so please try to understand,” the source said. “Farm workers, many of whom had been buoyed by talk of food distribution, are really disappointed, especially since prices are sky high in the market these days.”

However, the Hyesan source also said that a lot of people are prepared to wait and see until at least mid December, when harvest processing concludes and distribution can be finalized. “People assume that Kim Jong Eun won’t want to disappoint the people in his first year in power,” he explained.
 
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2014.08.12
Won Pyongyang Sinuiju Hyesan
Exchange Rate 7,940 8,120 8,310
Rice Price 5,800 5,850 6,000