Conditions and application method for farmland pension, monthly payment amount?
What is Farmland Pension?
The Farmland Pension is a project that has been implemented since 2011. It refers to a system in which farmland owned by elderly farmers aged 65 or older is provided as collateral, and retirement living stabilization funds are paid monthly in the form of pension, and pension debts are repaid in the event of the death of the beneficiary.
Farmland Pension is the world’s first farmland security type introduced to guarantee a stable retirement life for elderly farmers who have no income other than agricultural income.
It is a reverse mortgage system. 농지연금 가입조건
Subscribers can self-cultivate or rent the collateral farmland while receiving a pension calculated according to the price of the collateral farmland and the age of subscription, and if the subscriber dies, the spouse can continue to receive the pension through succession procedures. 좋은뉴스
In the case of the death of a subscriber (spouse), the heir repays the pension debts paid so far and cancels the security right, or the corporation collects the pension debt by disposing of the farmland through the execution of the security right.
When disposing of secured farmland, the amount of pension obligation is limited to the farmland disposal value, so the remainder of the disposal is returned to the heir, and the shortfall is not claimed to the heir.
The farmland pension pays the pension with the farmland owned by the subscriber as collateral (setting up a mortgage), and when the pension is terminated, the subscriber must repay the debt (total monthly payment + interest rate 2.0% + risk charge 0.5%).
The legal basis for farmland pension is implemented in accordance with Article 10 (projects) and Article 24-5 (projects for stabilizing life in old age of farmers using farmland as collateral) of the “Korea Rural Community Corporation and Farmland Management Fund Act.”
▶ Advantages of Farmland Pension
Advantages of Farmland Pension
The farmland pension, which has the above advantages, is a good system to obtain stable pension income in rural areas where the population is aging rapidly.
✅ Find out about ‘Housing Pension’!
The maximum amount of housing pension benefits is 1.93 million won per month! How to look up the expected amount of housing annuity
The housing pension is a system that allows people over the age of 55 to receive pension for life or for a certain period after entrusting their housing. The price of the house based on pension calculation will be raised from 900 million won to 1.2 billion won based on the market price.
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Farmland Pension Subscription Conditions
The conditions for subscribing to farmland pension are as follows:
1. Age of subscription: As of the end of the year of application, the farmland owner must be 65 years of age or older (in the case of 2020, a person born on or before December 31, 1955)
– Age refers to the civil law age and is calculated and applied based on the date of birth in the resident registration
2. Farming Experience: Applicant must have more than 5 years of farming experience
From the date of application for Farmland Pension, you must have at least 5 years of farming experience in the past.
Farming experience does not have to be continuous right before the application date, and it can be more than 5 years in total during the entire farming period.
3. Target farmland (collateral farmland must meet all of the following requirements as of the farmland pension application date.
① Among the farmland under the Farmland Act, farmland that is owned by the project target and is actually used for farming as farmland, paddy field, orchard designated for government purposes
② Farmland owned by the project target for more than 2 years (including the inherited farmland holding period of the ancestor)
③ The address of the person subject to the project (based on the address on the resident registration) is located within the city, county, gu where the secured farmland is located or within a city, county, or district adjacent to it, or an area within 30km of the address and the secured farmland farmland located on
*Requirements ② and ③ apply from newly acquired farmland after January 1, 2020
– Farmland for which no restricted real rights such as mortgages have been established (however, farmland with the maximum amount of senior bonds less than 15% of the price of collateral farmland can be enrolled)
– Farmland that is not subject to seizure, provisional seizure, provisional disposition, etc.
* Farmland excluded from farmland pension
Land on which illegal structures are installed
Farmland jointly owned by a person other than yourself and your spouse
Excluded farmland as defined in the Farmland Pension Work Handling Guidelines, such as farmland in areas where development plans and development plans are designated, implemented, and announced, and development plans are finalized
Farmland acquired through auctions and public auctions (including sales and gifts after auctions and public auctions) after January 1, 2018
(However, as of the date of application for farmland pension, the applicant’s holding period of secured farmland is more than 2 years and the applicant resides (based on address on resident registration) within ’30km in a straight line to the city/gun-gu where the secured farmland is located and the city/gun-gu adjacent thereto or the secured farmland’ can be collateralized)
For reference, you cannot sign up for farmland pension by collateralizing farmland owned by a third party (children, siblings).
Farmland Pension Payment Method, Monthly Receipt, Maximum Maximum?
The farmland pension is divided into a life-term pension in which pension is received until death and a term-type pension in which pension is received during a set period.
1. Fixed-term life sentence
A type that pays a certain amount every month until the death of the subscriber (spouse)
2. Front and rear thin type
For the first 10 years of subscription, more than the flat rate type, and less from the 11th year
3. Temporary withdrawal type
A type that can withdraw the required amount at any time within 30% of the total payable amount
4. Term flat-rate
A type in which a certain amount is paid every month for a certain period of time selected by the subscriber
5. Transfer of management
At the end of the payment period, a type of receiving more pension on the premise of transferring ownership to the corporation
* Eligible age for subscribing to farmland pension payment method
Farmland pension subscription age
The farmland pension subscription age and payment method are as shown in the table above.
▶ Farmland Pension Monthly Receipt
Farmland pension is determined according to the price of farmland, subscription age, and payment method, and the maximum monthly payment is KRW 3 million.
The price of farmland is set at 100% of the individually announced land for farmland as collateral or 90% of the appraised value.
Application of farmland pension interest rate
As for the loan interest rate, when applying for farmland pension, the applicant can choose one of the following.
1. Fixed interest rate: 2%
2. Variable interest rate: Applicable interest rate of variable interest rate loan for agricultural policy funds, recalculated every 6 months from the date of first monthly payment
Grounds for Suspension of Farmland Pension Payment
1. In case the farmland pension recipient dies and there is no spouse or non-succession subscription
2. In the case where a recipient of a farmland pension dies and has a spouse who has signed up for succession conditions, where the spouse refuses or fails to complete the registration of transfer of ownership of the collateralized farmland and the takeover of farmland pension liabilities within six months.
3. Where a recipient of a farmland pension loses ownership of the collateralized farmland;
4. In case the farmland pension claim is expected to exceed the maximum claim amount of the mortgage, and the request for change of the maximum claim amount of the corporation is not complied with
5. In case a restricted real right, etc. is established on the collateral farmland without the consent of the Corporation.
6. Where the secured farmland can no longer be used as farmland due to diversion, etc.
However, if it falls under 3 or 6 of the reasons for suspension of payment and is recognized as an unavoidable reason, farmland pension claims for the applicable collateral farmland will be recovered and farmland pension for the remaining collateral farmland can continue to be supported.
How to apply for Farmland Pension
If you apply through the Farmland Bank/Farmland Pension Portal (Internet), a Corporation employee will contact you to proceed with the Farmland Pension sign-up process.
To apply for a farmland pension, you must submit the farmland pension application form and required documents by mail or by visiting a branch office.
If you want to evaluate the farmland price at an appraisal value rather than a public price, you must additionally submit an appraisal consent form.
Please make sure to read the ‘Farmland Pension Project Explanation and Confirmation’ before applying.
Farmland Pension Manual.pdf
0.31MB
* Farmland Bank Farmland Pension Portal (Internet: https://www.fbo.or.kr/index.do)
– Click “Apply for farmland pension” after logging in (requires login)
* Farmland pension customer consultation 1577-7770 (Consultation hours 09: 00 ~ 18: 00, closed on Saturdays, Sundays, and holidays.)
Required Documents for Farmland Pension Application
After applying, the person in charge of the farmland bank’s branch office will provide consulting on farmland pension.
As an optimal farmland pension project, we will guide you through the necessary documents after consultation and submit the documents in person or by mail.
Once the submitted documents are received, the person in charge of the branch office will review the requested information and process the application as complete or unacceptable.
* caution
When submitting by mail, please fill in the application number on the documents to be submitted.
If you apply through the integrated farmland bank portal and do not submit the documents within the deadline (14 days), the application will be automatically canceled.
※ Additional documents may be requested if necessary.
Reference) Internet site of issuing document processing agency
Family Relations Certificate
Resident registration card, etc. (second) copy
land use plan confirmation
Certified copy of the Ministry of Agriculture
Certificate of taxation by taxation (property tax) City/Gun/Gu 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
Calculation of farmland pension receipt
For farmland pension, if you enter the date of birth of the owner and spouse and farmland price of owned farmland information, you can search the expected pension by pension type.
* The results of the expected pension inquiry are not finalized, and you can check the detailed expected pension through a consultation application.
* If the age of the owner is 65 years of age or older (born before December 31, 1955), the expected pension can be confirmed.
* Calculation of farmland pension receipt
Farmland Bank Integrated Portal
Farmland Bank Integrated Portal
www.fbo.or.kr
Compared to personal pensions or mortgage loans, the farmland pension is a very good pension system for retired farmers because it has a higher security of pension payment and a higher rate of collateral recognition for farmland.