UPDATE 1 (2013-6-5): The Daily NK reports that the DPRK’s new crop-sharing plan is in effect:
Inside North Korean sources have confirmed that collective farms are now offering part of their land to non-farmers in exchange for 30% of production derived from it, in effect renting farmland to private individuals.
A source from North Pyongan Province told Daily NK on the 5th, “Farms in Shinuiju have started authorizing private individuals to cultivate land owned by the farms. There’s a whole queue of people wanting to rent land and till it.”
“There is no limit on the amount of land that people can borrow from the farms,” the source went on. “The amount of land leased is decided according to the amount of labor that it is possible to commit to it. They have made it clear that if the harvest is worth a total of ten, then seven goes to the individual and three to the farm itself.”
It is easy to see why people are keen to get involved in this tenant farming method of agriculture; it appears to be more favourable to the farmer than the existing system. Currently, factories and enterprises rent land from collective farms and farm it as a sideline, then divide a proportion of the yield up between workers. However, by farming land individually, people can realize greater benefits from increased effort, providing an incentive to work harder and longer.
A source from North Hamkyung Province corroborated the story, saying, “Cooperative farms here are renting land to individuals and factories at 70-30. There are more individuals doing it than enterprises, and the amounts of land taken range from a few tens of pyeong at the smallest all the way up to half a jeongbo (1500 pyeong; one square meter is equal to 0.3025 pyeong).”
According to the source, people currently view this as one of their best chances to ease food insecurity problems in the absence of state distribution.
Read the full story here:
Farms Rent Land for 70-30 Split
“Last year, we studied reasonable economic management methods in different fields of economic work, and introduced it to some units on a trial basis,” Ri Ki Song, an economist from North Korea’s Academy of Social Sciences, told AP this week.
North Korea formally announced the policy, and its expansion to include factories and other enterprises, a day after holding a plenary session of the Central Committee of the Workers’ Party. Rodong Sinmun, the party newspaper, called it part of a “new strategic line.”
Ri, however, dismissed characterizations of the changes as reform.
What’s new, he said, is allowing managers to dole out goods and cash as incentives. In addition, after paying back investments provided by the state, managers can set their employees’ salaries and offer raises to those who help drive up production, he said.
The main goal: to encourage “greater profits” and solve North Korea’s chronic food shortage, Ri said.
He said North Koreans work hard, but the new incentives give them motivation to work even harder. “They are saying that higher salaries and shares will improve their life.”
Political and military expert Ralph Cossa, president of the Pacific Forum CSIS in Hawaii, noted that North Korea has rolled back past attempts at economic reform.
“The North Koreans have played reform games before and then just sort of pulled the rug out from under it,” he said. Cossa cited international aid groups as saying the military is pressuring farmers to donate their portion to the army.
This year, things are being managed differently, said Kim Jong Jin, deputy chairman of the farm’s managing committee.
He said the state provided the farm with the rice seedlings, which farmers are now transplanting to paddies by hand. Farmers are on smaller teams that have direct responsibility over their plots.
After the rice is harvested, farmers must “repay” the state for the seeds. At Tongbong that means giving the state about 193 kilograms of rice as payback for every 140 kilograms of seedlings they received.
But any surplus can be kept by the team to sell, barter or distribute – a change from past policies that required farmers to turn all harvests over to the state.
“This encourages enthusiasm for production and we get more of what’s produced,” Kim said.
Read the full story here:
NKorean farmers planting rice with profits in mind