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      Currently aging is a prominent issue in the agricultural sector in Korea. In 1997, the government implemented the “Direct Payment Policy Rewarding Business Transfer of Aged Rice Farmers”, which intends to help younger farmers become larger and more competitive. The purpose of this paper is to evaluate the effects of this policy on the reduction of the number of aged farmers. This is done through Difference-in-Difference model. We analyze data from 1990 to 2015. The data is compiled by number households, broken into age groups by 5 year increments from 25 to 70. In the DID analysis, the coefficient indicating net effect of the retirement of aged farmers is estimated to be statistically significant. This result implies that the policy has an effect on reducing the number of farmers over the age of 65 in the rice farming sector.
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      Currently aging is a prominent issue in the agricultural sector in Korea. In 1997, the government implemented the “Direct Payment Policy Rewarding Business Transfer of Aged Rice Farmers”, which intends to help younger farmers become larger and mor...

      Currently aging is a prominent issue in the agricultural sector in Korea. In 1997, the government implemented the “Direct Payment Policy Rewarding Business Transfer of Aged Rice Farmers”, which intends to help younger farmers become larger and more competitive. The purpose of this paper is to evaluate the effects of this policy on the reduction of the number of aged farmers. This is done through Difference-in-Difference model. We analyze data from 1990 to 2015. The data is compiled by number households, broken into age groups by 5 year increments from 25 to 70. In the DID analysis, the coefficient indicating net effect of the retirement of aged farmers is estimated to be statistically significant. This result implies that the policy has an effect on reducing the number of farmers over the age of 65 in the rice farming sector.

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