As the four-rive project comes to the finish, the government is seeking ways to create sources of income and new jobs for the farmers in the farmland-remodeling area. By the request of Andong-si that has willingness to preoccupy government's policies, this study has carried out. The purposes of this study are to formulate the basic plan for building the agricultural complex, which consists of a rice production complex, a horticulture production complex and an agri-tourism complex, on the farmland-remodeling area(270ha) constructed nearby Nakdonggang in Andong-si and conduct its feasibility analysis.

The farmland-remdeling area in Andong-si has a simple structure of crop production mainly based on rice production and has a lack of distribution facilities to create added value. Therefore, the farmers are expected to get more higher income by producing more controlled crops and using distribution facilities in the agriculture complex. It is also expected to save production cost by utilizing waste heat generated from a thermoelectric power station.

In addition, since Hahoe village is located nearby the proposed area and the Gyeongbuk provincial government building is planned to move into Andong-si, the number of population and tourists are expected to increase. By connecting agricultural activities with tourism, therefore, a agri-tourism complex can contribute to activate the regional economy and also can be used as a place for urban and rural interchange. In these respects, the agricultural complex is needed to be built on the farmland-remodeling area in Andong-si.

The total cost of building the agricultural complex is estimated at 24 billion won in the case of using the waste heat. As a result of the feasibility analysis, this project is appeared to be economically appropriate since B/C ratio(the ratio of benefit and cost) is 1.24 and IRR(Internal Rate of Return) is 13.8%. Furthermore, the project of building the agricultural complex is estimated to create 5,600 jobs in the rural community and have a great ripple effect on production inducement valued about 246 billion won.

The agricultural complex, therefore, is expected to boom up the regional economy and activate urban and rural interchange by providing production facilities for the farmers to get higher income and also providing places to relax for the city people.




Researchers: Jong-sun Kim, Kyeong-hwan Choi and Jong-hyun Chae
Research period: 2011. 11. 29 - 2012. 3. 7.
E-mail address: sun589@krei.re.kr