Farmland Pension Subscription Conditions
Farmland Pension is a pension system that allows you to prepare for your old age by using farmland as collateral. The government implements the farmland pension system as a retirement plan for farmers, but there are many cases in which people do not know about the farmland pension system. If you are considering returning to farming or farming after retirement, you need to pay attention to the farmland pension. 농지연금 가입조건
In the case of farmland pension, it has similar characteristics to the housing pension system as a means of preparing for old age for farmers who own land. The Farmland Pension is a system in which fields or orchards used for farming are entrusted as collateral and a monthly pension is received. Currently, the cumulative number of farmland pension subscribers is 16,542, and they are receiving an average of over 1.05 million won per month. 좋은뉴스
The farmland pension is paid by owning the land you own, but there is also a way to receive a housing pension by collateralizing your house. Below is the information related to the housing pension, so if you need it, it would be nice to check it out through the link below. We have described the amount of receipt related to the housing annuity, the expected pension inquiry, and how to sign up.
Farmland Pension Subscription Conditions
In the case of Farmland Pension, the eligibility for subscription is 65 years of age or older and farming for more than 5 years. The farmland pension eligibility requirements will be applied equally to those returning to farming. All you have to do is entrust your land or orchard to the Rural Community Corporation and sign a contract to join the Farmland Pension. In addition to the national pension, it has the advantage of being able to receive a retirement pension and overlapping receipts.
Therefore, if you join the farmland pension, it is a good pension system that guarantees your old age. Recently, it was possible to receive a farmland pension at the age of 65 in 2022, but the age of receiving a farmland pension has been lowered to 60 years old, so it is getting more attention. Usually, if the appraisal value of the land you own is 100 million won, you can receive a farmland pension of about 400,000 won per month. Couples can receive up to 6 million won when combined.
Classification contents
Age for subscription If the farmland owner is 60 years of age or older as of the end of the application year
Farming Experience – To prevent speculation, farmland pension applicants must have more than 5 years of farming experience
-In the case of farming experience, it does not have to be consecutive, and it is possible if the combined period is 5 years or more
-If there is income other than farming, the income must be less than 37 million won per year.
Target farmland – In the case of farmland owned by the project target and used for farming as rice field, paddy field, orchard among farmland according to the Farmland Act
-Farmland owned by the project target for more than 2 years (including the period of possession of inherited farmland by the ancestor)
-In the case where the limited real right such as mortgage is not established and there is no foreclosure, provisional seizure, provisional disposition, etc.
-If the farmland is located within the city, county, or district where the mortgaged farmland is located and the adjacent city, county, or district, or the address is located within a straight line distance of 30km to the mortgaged farmland
-Applicable even if the applicant and his/her spouse are jointly owned
Farmland excluded from farmland pension – Land for illegal construction installation
-In the case of farmland jointly owned by a person other than the person and their spouse
-Excluded farmland as defined in the Farmland Pension Work Handling Guidelines, such as farmland in areas where development areas and development plans have been designated and implemented and confirmed
– Farmland acquired at a light auction after January 1, 2018 (However, as of the date of application for farmland pension, if the applicant’s collateral farmland holding period is more than 2 years, if the address on resident registration is located within 30 km, collateral is available)
Advantages of Farmland Pension
① In the case of farmland pension, there is no need to repay even if the pension amount is higher than the farmland price. Conversely, if the subscriber dies, the farmland is disposed of and the remaining amount is returned to the heir. In the meantime, if you pay back the amount of the farmland pension, you can preserve your land ownership as it is, and it can be succeeded to your spouse. However, in the case of a spouse, he/she must be over 60 years of age and subscribe to a succession type product that promises to succeed to pension.
② In the case of farmland pension, early termination is possible. However, in case of early termination, you must pay back the total amount of the pension you have received, plus 2% annual interest and 0.5% risk charge. In this case, you can use the farmland annuity as a low-interest loan because it is cheaper than the land mortgage loan interest rate of general financial companies.
③ Subscribers may continue to farm on the farmland while receiving farmland pension by collateralizing the farmland. In addition, if the price of farmland is less than 600 million won, there is a tax benefit that provides a full property tax reduction.
④ The Farmland Pension is implemented by the government, so you can receive a stable old-age pension without bankruptcy.
⑤ When you sign up for Farmland Pension Keeper Account, you can protect your pension from the risk of foreclosure up to 1.85 million won per month.
*There is no big difference if you receive farmland pension of 2 to 3 million won per month, but if you receive it as a lump sum, you may receive more interest depending on the interest rate. Therefore, please note that it is more advantageous to receive an annuity rather than a lump sum payment.
Types of Farmland Pension
Farmland pensions are largely divided into life-type pensions that receive pensions until death, and term-type pensions that receive pensions for a set period.
① Lifetime flat rate
Type of farmland pension payment of a certain amount every month until the subscriber’s (spouse’s) death
②Before and after thin type
A type of pension that receives more than the flat rate during the first 10 years of subscription and less from the 11th year
③Withdrawal at any time
A type that can withdraw the necessary amount within 30% of the total payable amount at any time
④ fixed-term fixed-term (5 years, 10 years, 15 years)
At the end of the payment period, a type of receiving more pension on the premise of transferring ownership of the construction
⑤ Management transfer type
At the end of the payment period, the type of receiving more pension on the premise of transferring ownership of the construction
Payment method Life imprisonment/transfer of management fixed-term fixed-term (5 years) fixed-term fixed-term (10 years) fixed-term fixed-term (15 years)
60 years of age or older 78 years of age or older 73 years of age or older 68 years of age or older
Documents to be submitted when applying for farmland pension
Documents to be submitted When applying – 1 copy of each ID card (including spouse)
-Copy of register: limited to farmland subject to collateral
(1 copy for each lot)
-Comprehensive floating certificate: limited to farmland subject to collateral
(1 copy for each lot)
– Agricultural support department or agricultural business registration confirmation
When requesting an appraisal – 1 copy of consent form, such as appraisal request
(including handwritten signature)
– 1 copy of request for appraisal fee payment
(including handwritten signature)
When signing the contract – 1 copy of family relationship certificate
– 1 copy of resident registration (including address change)
– 1 copy of certificate of seal impression (for setting mortgage right) and personal seal
– 1 copy of bankbook (in the name of the pension recipient)
-Certificate of registration right (if you do not have a certificate of registration right, bring your ID)
*Prepare a document confirming the loss of the registration right (number of copies to be prepared: 2 copies (attached a copy of the identification card), written and confirmed person: agent (judicial scrivener))
Precautions – When submitting by mail, submit after entering the application number in the documents to be submitted.
-If you apply through the integrated farmland bank portal and do not submit the documents within 14 days, the application will be automatically canceled.
(Request additional documents if necessary)
The required documents link is below, so if you need it, you can check the link.
Issuance document processing agency Internet site
Family Relations Certificate
Resident registration card, etc. (second) copy
land use plan confirmation
Certified copy of the Ministry of Agriculture
Taxation certificate by taxation (property tax) City, county, district office civil affairs office
Eup, Myeon, Dong Resident Center Civil Complaint 24
Agricultural business registration confirmation (certificate) National Agricultural Products Quality Management Service support online service for agricultural business registration
Comprehensive Real Estate Certificate Sigun-gu and Eupmyeondong branch offices Convenience
Certified copy of real estate (land) register Registry offices of district courts nationwide Internet registry offices of Korean courts
Appraisal Request Agreement.pdf
0.03MB
Farmland Pension Project Explanation Confirmation.pdf
0.33MB
How to apply for Farmland Pension
① Enter consultation information (fill out the application form)
After verifying your identity or logging in on the homepage, fill out the farmland pension application
② Telephone consultation
A counselor from the branch office in charge of the corporation calls the farmland pension subscriber and provides information on required documents after counseling on farmland pension.
③ Receipt of documents (visit/mail)
Application can be processed by visiting or mailing the guided documents to the branch office in charge.
④ Review and approval
Approval through construction screening, application progress can be checked through My Page in the homepage
⑤Visit to the branch office/conclude a contract
If the applied for farmland pension is approved, visit the competent branch office, fill out contract-related documents and conclude the contract