How farming loss differs from compensation for the land
When farmland is acquired for a road, industrial site or public housing project in Korea, payment for the land and compensation for disrupted farming are separate questions.
Farming loss compensation evaluates agricultural income using prescribed rules; it does not estimate the property’s sale price.
A large land-compensation figure does not by itself establish that the farmer’s income loss has been assessed correctly.
This calculator serves farmers, tenant cultivators and family members helping with the compensation process.
A tenant should gather cultivation evidence even when another person owns the land.
Family members can help connect the notice, lease, farm-registration records and sales settlements to the same plot and crop, instead of relying solely on the title deed.
If the owner and cultivator differ, both payee status and allocation need attention.
The decision this comparison supports
Compare the basic two-year amount with the proven actual-income amount, then review the owner and cultivator allocations.
Use the difference and pending items to decide which evidence to collect and which calculation assumptions to ask the project operator to review.
This is a Korea-specific calculation using rules verified in 2026, rather than a compensation rule for other countries.
The comparison does not approve an income claim or guarantee payment.
Verify the farmland and actual-cultivator conditions first
Article 48 of the Korean Land Compensation Act Enforcement Rule includes exclusions as well as valuation formulas.
A land-category entry or a current photograph alone cannot establish eligibility.
Review use of the land and the lawful basis of cultivation at the relevant project or compensation-plan notice date.
If an exclusion is selected, the calculator withholds compensation figures; an unconfirmed eligibility selection produces a pending review state.
The five Article 48(3) exclusions
- Farmland use began only after the relevant notice date.
- The land is used temporarily for farming in light of its land-use plan and surroundings.
- Another person’s land is cultivated through unlawful occupation.
- The cultivator does not meet the applicable statutory farmer status.
- The project operator permits continued cultivation for at least two years after compensation for acquisition of the land.
Actual-cultivator evidence may include a lease, an owner-confirmed cultivation statement, agricultural direct-payment records or farm-business registration confirmation.
Article 48(7) also addresses notice and objection procedures where only a village or neighborhood representative’s confirmation is submitted.
Ask the project operator which documents and procedures apply to the particular evidence package.
Having sales receipts does not automatically establish farmer status or lawful actual cultivation.
Basic two-year compensation: statistical years and units
Basic formula
Acquired area × mean of three preceding annual crop-revenue figures per m² × 2
For each year, divide provincial crop receipts by the corresponding cultivated area.
Distinguish crop revenue from net farm income, total agricultural revenue that includes livestock, and an already calculated two-year compensation rate.
Convert values expressed in thousands of KRW to KRW and aggregate receipts to the correct area unit before entry.
The calculator takes the arithmetic mean of the three annual unit figures, then multiplies it by acquired area and two years.
Entering a rate that already represents two years into an annual field doubles the duration again.
Confirm which preceding statistical years the project’s calculation uses and record them in the source memo.
All statistical amount fields start blank; the example button contains hypothetical figures only.
Provincial statistics applicable to metropolitan-city farmland under Article 48(1)| Farmland location | Applicable statistics |
|---|
| Seoul and Incheon | Gyeonggi |
| Daejeon | South Chungcheong |
| Gwangju | South Jeolla |
| Daegu | North Gyeongsang |
| Busan and Ulsan | South Gyeongsang |
| Other provinces / Sejong | Own provincial statistics / confirm Sejong with the operator |
Sejong is not separately assigned to a province in this article’s metropolitan-city mapping.
The calculator therefore leaves Sejong calculations pending rather than assuming South or North Chungcheong statistics.
Even for the correct province, publication years and area units must match; do not combine incompatible tables without review.
Proven actual income: connect sales receipts to the whole area
Articles 2–5 of the Crop Actual-Income Recognition Standards define the revenue period, cultivated area, documentary evidence and income-rate source.
Use receipts from cultivation of the same kind of crop and deduct selling expenses such as consignment commissions.
Dividing all business sales or receipts for different crops by only the acquired portion can overstate income per square metre.
The receipt area and the acquired area are separate fields for this reason.
Receipt total and cultivation period
Annual average receipts = period receipts × 12 ÷ cultivation months.
An annual average of KRW 15 million over three years corresponds to KRW 45 million in receipts and 36 months.
When cultivation lasted less than three years, use that actual period’s evidence.
Confirm the annualization assumptions and included transactions with the operator for short or partial-year cultivation.
Whole cultivated area and income rate
Annual actual income per m² = annual average receipts ÷ the whole receipt-generating cultivated area × income rate.
If 3,000 m² is acquired but the same-crop receipts came from 6,000 m², the denominator is 6,000 m².
Enter a 60% rate as 60 and verify the crop and provincial category in the applicable income book.
The standard gives priority to the provincial, crop-specific income rate.
Where the crop is absent, review the average rate for the appropriate comparable crop group specified by the notice.
Use the income book published in the year of the relevant notice; if that year’s book has not been published, the standard refers to the book published in the preceding year.
The average crop-income field uses annual KRW/10a: 10a equals 1,000 m².
Do not enter an already converted KRW/m² amount in that field and divide it again.
What changes above twice the average crop income?
When annual actual income exceeds twice the average crop income, review Article 48(2)(1) and Article 6 of the recognition standard.
Equality with twice the average is not an excess and does not trigger this substitution.
When the special rule applies, the recognized production-sales amount replaces the original actual-income unit amount.
Do not apply the income rate a second time or automatically choose the larger of basic and actual compensation.
Standard average yield can be established
Use annual average yield × 2 × sale price as the annual sales amount.
If yield is stated per 10a, divide the resulting amount by 1,000 to obtain KRW/m².
Make sure both yield and price use the same unit, such as kilograms, stems or plants.
Verify the production and price evidence accepted by the project operator.
Yield cannot be established
The proviso to Article 6(1) uses twice the average crop income where production cannot be confirmed.
An unreviewed or missing field differs from a reviewed finding that production cannot be established.
The calculator does not silently apply the proviso merely because a yield field is blank.
Annex 1 special cultivation
Multiple-cycle greenhouse crops and certain flowers, potted plants, trees and mushrooms may have separate production and cultivation standards.
Enter the operator-confirmed annual sales amount reflecting applicable maximum yield, average yield and production cycles in Annex 1.
A crop name alone does not establish a particular multiplier.
The calculator withholds the actual-income amount if the special-rule basis remains unconfirmed.
The four-month exception requires continued farming after relocation
Annex 2 identifies mushrooms inoculated in logs, flowers grown in pots, and young seedlings grown in trays.
Also verify that the cultivation does not directly use the farmland’s soil fertility and that moving the growing crop allows uninterrupted farming to continue.
Growing a flower crop does not by itself make every soil-planted flower eligible for the four-month treatment.
Where the shorter period applies
For a confirmed Annex 2 case, the actual-income method is acquired area × recognized annual unit amount × 4/12.
The Article 48(1) basic two-year comparison remains unchanged.
For tenant land without agreement, the four-month actual total can be below the owner’s half of the basic amount.
The calculator then withholds allocation and requests operator review instead of inventing a negative cultivator payment.
Allocation depends on ownership, farmer status and agreement
For self-cultivation, the owner and cultivator are the same person, so the calculator displays a single full payment.
For tenant cultivation, review whether the owner is a farmer residing in the relevant area, whether cultivation continues, and whether an agreement exists.
The relevant area refers to the regions in Enforcement Decree Article 26(1), including the same or adjacent city, district or township, or an area within 30 km in a straight line of the farmland boundary.
Check actual residence and farmer status separately; selecting a province does not establish either condition.
Owner and actual-cultivator allocation conditions for tenant farmland| Verified conditions | Owner | Cultivator |
|---|
| Local-resident farmer owner; agreement reached | Agreed amount | Agreed remainder |
| Local-resident farmer; no agreement; basic method | 50% of basic amount | 50% of basic amount |
| Local-resident farmer; no agreement; actual method | 50% of basic amount | Actual total minus owner amount |
| Non-resident or non-farmer owner; continued cultivation | KRW 0 | Full amount |
| Voluntary departure; local-resident farmer owner | Full amount | KRW 0 |
| Voluntary departure; other owner status | Payee requires separate review | Payee requires separate review |
Article 48(5) concerns voluntary departure or a similar circumstance leaving the cultivator no longer farming at the negotiation or expropriation-adjudication date.
It limits the owner-payment exception to an owner who is a local-resident farmer.
Do not equate leaving because of the public project with voluntary departure without examining the facts.
An entered allocation percentage should reflect an agreement actually reached, and should be distinguished from the statutory no-agreement method.
Step-by-step use and document preparation
- Check the compensation notice and acquired area, then verify exclusions and actual-cultivator evidence.
- Enter the applicable region’s three preceding annual KRW/m² crop-revenue figures and record their years and source.
- Enable the actual-income comparison and enter same-crop net receipts, cultivation duration, whole cultivated area and income rate.
- Check the above-double rule and select a substantiated standard-yield, unavailable-yield or Annex 1 basis.
- For an Annex 2 cultivation method, confirm soil independence and uninterrupted farming after relocation.
- Select self or tenant cultivation, owner status and agreement status; compare the totals and allocations.
- Save the input-and-result TXT file or print the comparison, then take it with evidence to the project operator.
The document checklist records preparation status.
The submitted checkbox is marked by the user and does not transmit records or lodge a compensation application.
Editing an input clears the displayed calculation so that an old comparison is not saved as a new result.
Recalculate before exporting the final assumptions.
Worked hypothetical compensation and allocation examples
These figures explain the calculation and are not official provincial statistics or crop prices.
The example button uses the same hypothetical amounts.
Do not treat KRW 1,500/m² as a verified rate for any particular province.
Basic amount: KRW 9,000,000
Acquired area is 3,000 m² and each of the three annual rates is KRW 1,500/m².
3,000 × 1,500 × 2 = KRW 9,000,000.
Without agreement, a local-resident farmer owner and tenant cultivator each receive KRW 4,500,000 under the basic method.
Actual-income amount: KRW 18,000,000
Receipts of KRW 45,000,000 over 36 months, a whole cultivated area of 3,000 m² and a 60% income rate give KRW 3,000/m² annual actual income.
Average crop income of KRW 2,000/m² means this is below twice the average, so no above-double substitution applies.
The two-year total is KRW 18,000,000: owner KRW 4,500,000 and cultivator KRW 13,500,000 without agreement.
Four months: KRW 3,000,000
For confirmed movable potted flowers under Annex 2, the same annual actual income gives 3,000 × 3,000 × 4/12 = KRW 3,000,000.
With a non-resident owner and continued tenant cultivation, all goes to the cultivator.
With a local-resident farmer owner and no agreement, the total is below the KRW 4,500,000 basic half, so allocation is pending review.
Yield substitution check
Actual income of KRW 4,001/m² exceeds twice an average income of KRW 2,000/m².
Average yield of 1,000 units/10a and a sale price of KRW 1,500/unit give a substituted annual amount of KRW 3,000/m².
Two-year compensation is KRW 18,000,000; do not multiply by the income rate again.
If the owner and cultivator agree on a 30% owner share, the KRW 18,000,000 actual-income total splits into KRW 5,400,000 and KRW 12,600,000.
Changing an agreed percentage changes allocation while preserving the total.
Displayed figures are rounded to whole KRW, and the cultivator figure is the displayed total minus the rounded owner figure.
This display convention does not establish the final appraisal’s official rounding method.
Interpret the comparison and prepare for negotiation
When actual-income evidence appears beneficial
A positive difference still requires receipts and area records describing the same cultivation.
Organize delivery dates, crop types, quantities, selling expenses and net settlements to make the calculation auditable.
Do not present an estimated increase as an already approved payment or use it as the basis for committed spending.
When the rate or allocation differs from a notice
Separate the land-price payment from agricultural loss and check whether a two-year rate was entered as annual revenue.
For tenants, review the agreement and the owner’s local-resident farmer status.
Mark the specific differing value or condition on the comparison and request an explanation from the project operator.
Under Article 83, an objection is due within 30 days of receipt of the adjudication original.
Article 85 specifies 90 days from receipt of the adjudication for a direct administrative suit, or 60 days from receipt of the objection adjudication when an objection was pursued.
Keep these triggering receipts separate and verify service dates, initial-day treatment, holidays and exceptions with the authority or a professional.
The page shows the statutory periods without generating an unverified final calendar deadline.
Frequently asked questions
Can a person who does not own the farmland receive compensation?
Review evidence that the actual cultivator lawfully occupies the land and grows their own crops.
Tenant cultivators should prepare relevant records even when the owner is someone else.
Statutory farmer status and the exclusions must also be checked.
Why take a three-year mean and then multiply by two?
Three years define the annual statistical unit amount; two years define the basic compensation duration.
Doubling three years of total receipts or doubling an already two-year compensation rate gives a different result.
What if cultivation lasted less than three years?
The standard refers to actual income over the cultivation period when it is shorter than three years.
Enter the receipt total and actual duration, but confirm annualization for short periods, multiple cycles or changing area with the operator.
Does proving actual income always increase compensation?
Production substitution and the four-month exception can make it lower than the basic amount.
The calculator preserves a negative difference and does not automatically designate the larger amount as payable.
Does exactly twice the average income trigger the special rule?
No: this trigger requires an excess above twice the average.
Above that boundary, distinguish standard production-sales substitution, the unavailable-yield proviso and Annex 1 special standards.
Do all flowers and mushrooms receive only four months?
Check the Annex 2 log-mushroom, potted-flower or tray-seedling type, soil independence and uninterrupted farming after relocation.
The crop’s name alone does not establish the reduced period.
Does the owner receive everything if the cultivator leaves?
The voluntary-departure exception at negotiation or adjudication is limited to a local-resident farmer owner.
Other owner status or an unconfirmed reason for departure requires separate payee review.
Are land value, relocation and equipment costs included?
The scope is farming loss and allocation for one farmland case and one crop.
Land price, facility relocation, compensation for the crops or trees themselves, equipment sale losses, moving assistance and taxes are separate items.
Official sources and effective dates
The current-law search, articles, notice and annexes were checked directly through the National Law Information OPEN API on October 6, 2026.
The Act version is effective September 8, 2026; the Enforcement Rule version is effective April 9, 2024.
The Crop Actual-Income Recognition Standards are Ministry of Land, Infrastructure and Transport Notice No. 2026-360, effective July 8, 2026.
These dates identify the verified versions; they do not establish that the same version governs every historical project.
Recheck statistical years, income-book publication years, crop yields and sale prices, annex treatment, actual cultivation, residence and agreement evidence for each project.
Input limits are numerical support limits, not statutory compensation ceilings.
Do not mix several crops or changing yearly areas into one single-crop case without a separate appraisal review.
Prepare the comparison together with its evidence
Verify the statistical units and actual-income records, then save the basic amount, actual amount and payee allocations.
Use pending items to identify missing documents instead of filling them with assumed rates.
A saved comparison with explicit assumptions helps make the next negotiation or evidence-review request concrete.