With the development of national economy, the poor circumstances of welfare, education, and healthcare facilities in farm and rural towns and the loss of profitability following the opening of borders are thought to aggravate the aging of farm owners ...
With the development of national economy, the poor circumstances of welfare, education, and healthcare facilities in farm and rural towns and the loss of profitability following the opening of borders are thought to aggravate the aging of farm owners without a particular alternative measure. The farm labor issue following the aging is expected to have an enormous impact on the decrease in manpower in the farm regions and on the growth and sustainability of agriculture in Korea in the future. Therefore, it is required to identify the characteristics of demand for employees and develop a prediction model for the aging of farm owners to establish an efficient policy for the balanced supply of labor resources for farms in the future.
Therefore, this study was conducted to use the resources from the Farm and Fishery Survey (2010) Farm and Fishery Survey is conducted every 5 years to identify the scale, distribution, and management type of farm and fishery households across Korea to provide fundamental resources for farm/forestry/fishery policies and regional development plans for rural towns. The subjects of survey are households and the scope of survey is nationwide. The survey officers visit each and every household for the survey.
to analyze the characteristics of demand for employees in agriculture and suggest an employee demand prediction model as the aging of farm owners is a serious issue in Korea. In terms of the methodology of study, first, a micro approach was taken to analyze the aging of farm owners and the demand for employees and the probit analysis was used considering the characteristics of dependent variables to analyze the employment probability by the type of agriculture and the term of employment. Second, a macro approach was taken based on the idea of Bernard and Busse (2004) for the forecast of future employees to design an employee demand prediction model for Korean farms.
The following summarizes the findings of using the recursive bivariate probit model to analyze the demand for employees for each type of agriculture following the aging of farm owners. First, aged farm households showed lower probability of hiring in most forms of agriculture compared to unaged farm households, but it was analyzed that short-term employment would have a great impact on special crops·mushrooms while mid/long-term employment on livestock. Second, it was analyzed that large-scale farm households (farm households with high sales) had higher probability of hiring, but short-term employment would have a great impact on rice plants and fruit trees while mid/long-term employment on flowering plants· decorative horticulture. Third, the ownership of farming machines may be thought as a replacement for employment, but the probability of hiring was high for most forms of agriculture and it is possible that the manpower with the ability to operate the farming machines would be mutually supportive. Fourth, in terms of the educational level of farm owner, it was found that the probability of hiring is higher with longer education, and the impact of short-term employment would be significant on flowering plants·decorative horticulture and fruit trees while the impact of mid-term employment would be significant on special crops and mushrooms and long-term employment on livestock. Fifth, in terms of the farming experience of owners, the impact varied according to the term of employment. With longer experience, the probability of short-term employment was higher and the probability of long-term employment was lower.
The following lists the findings of analysis conducted by building nine single equation models to predict the employee demand of farm households in Korea and using a seemingly unrelated regression model considering the contemporaneous correlation of the equations. First, in regards to the aging of owners, the increase in the number of owners who are 65 or older was highly likely to reduce the employee demand, and this would have a greater impact on mid/long- term employment (3-6 months, 6 months or longer) than in short- term employment. Also, the impact of aging of owners varied according to the type of agriculture. In case of vegetables·mountain greens and special crops·mushrooms, in particular, it had a relatively greater impact on employment for 3 months or longer, while flowering plants·decorative horticulture and livestock was relatively more impacted by employment for 6 months or longer. Therefore, these aspects should be considered for the efficient forecast of future employee demand in the agriculture industry.
Second, the following denotes the results of analyzing the characteristics of general employee demand. According to the Farm and Fishery Survey (2010), about 72.6% of farm households are self-operated farms with no outside employment, while about 2.23% of farm households had experience hiring for more than 3 months. This indicates that employee demand is highly likely to decrease with a smaller number of farm households and that the employee demand in agriculture is highly likely to decrease with other conditions stay consistent. The structural change of Korean agriculture is highly likely to have other impacts on employee demand according to the type of agriculture; if the structure of agriculture changes from rice plants and food crops to flowering plants·decorative horticulture, vegetables·mountain greens, and special crops·mushrooms, employee demand is highly likely to increase if other conditions stay consistent.
The results of forecast for 2020 using the forecast model are summarized as follows: first, it was forecasted that the intensification of aging of farm owners and the decrease in total number of farm households would work as factors that lower the employee demand. However, it was forecasted that the change in the forms of agriculture and the expansion of farm households in scale following the change in the structure of agriculture would serve as the factors that increase the number of farm households that hire and the overall employee demand would not change much. Second, the aging of farm owners did not have a significant impact on the demand for short-term employees in the scenario where the aging of farm owners was intensified (increased by 14%) and other conditions stayed consistent, but it would have a great impact on the demand for mid/long-term employees.
The following are the suggestions based on the above findings: first, the employee demand in agriculture is likely to increase according to the expansion of agriculture in scale and the change in the form of agriculture. The increase in the demand would offset the decrease in employee demand following the aging of farm owners without changing the employee demand in agriculture much compared to 2010.
Second, considering the aging of farm owners only, the intensification of aging would lower the demand for mid/long-term employment for 3 months or longer rather than the demand for short-term employment for less than 3 months.
The decrease in demand for mid/long-term employment in agriculture may lead to the decrease in jobs in farm regions to accelerate the loss of younger generations and intensify the aging and decentralization phenomena in farm regions in a vicious cycle. In order to resolve these potential issues, the policies to invite new younger farm owners to alleviate the aging of farm owners and the policies to create non-farming jobs for the rural regions should be promoted actively.