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농업투자분석기준(Criteria for the analysis of agricultural investment) : 대단위농업종합개발사업(Concerning large-scale agricultural development projects)

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Title 농업투자분석기준(Criteria for the analysis of agricultural investment)
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Sub Title

대단위농업종합개발사업(Concerning large-scale agricultural development projects)

Material Type Reports
Author(Korean)

임재환

Publisher

서울:한국개발연구원

Date 1978
Series Title; No 정책연구시리즈 / 78-05
Pages 311
Subject Country South Korea(Asia and Pacific)
Language Korean
File Type Documents
Original Format pdf
Subject Industry and Technology < Agriculture
Holding KDI; KDI School

Abstract

The purpose of this study is to enhance the effectiveness of institutional, administrative, and organizational measures regarding large-scale agricultural development projects in Korea.
Large-scale agricultural development projects in Korea began as projects for developing water sources for agricultural use in 1965, and have since evolved into the development of areas along the four major rivers of Korea. The single- and multi-purpose agricultural development projects of this type are often multiphase endeavors, involving preliminary research and surveys, execution, completion, and maintenance and monitoring. The preliminary phase is the most important, as it is in this phase that the feasibility and anticipated effects of the given project must be accurately determined.
The effects of a given project should be foremost consideration when developing the criteria for analyzing the agricultural investments that have been made since 1965. Once the effects have been analyzed, the researcher should decide on a definite method for estimating anticipated gains or profits, while determining the principles of economic evaluation to be followed and conducting basic analyses on the returns on investment and on the potential value of labor involved. Afterward, the researcher should estimate the opportunity cost of the capital to be invested by taking into account the potential and standard exchange rate coefficients, while also evaluating the prices of the input and output. Other additional factors to be considered include: the remaining lifespans of the given facilities; the financial burdens on farmers involved and the redemption plan; the unit costs of maintenance; sensitivity; financial matters; indicators of the ability of the involved parties to repay the costs and share the financial burdens; and internal exchange rate of the project. There are two main methods for allocating the costs of multipurpose projects: the separable costs-remaining benefits method and the specific costs-remaining benefits method. Each of these methods, however, encompasses many variants.
Applying the most common method of analyzing agricultural investment and development projects in Korea revealed that the majority of projects are in the region surrounding the Yeongsan River, Korea’s fourth-largest river, located in the southwestern part of the country. This region is characterized by gently rolling land, into which the Namhan River and the Sobaek Mountains extend. The region produces over 200 percent of the average rice output in Korea annually. However, analyses concerning this region lack a consistent method, making it difficult to guarantee accuracy. Applying a uniform method of analysis will prevent a great deal of inconsistency and confusion in the future. A scientific method of analysis is also necessary in order for policymakers to prioritize among a range of large-scale agricultural development projects yet to be undertaken.