Since the income of rice farmers depends on the rice harvest price of each session, the government is providing fixed direct payment and complementary direct pay-ment in order to compensate for the current status. This report estimates the cost of the two bills, which try to change into the complementary direct-payment system.

    Complementary direct-payment is operated under the system that pays 85 per-cent of the difference between the ‘objective price’ and ‘rice harvest price’. However, it subtracts the price they have already paid for as fixed direct-payment.

    Complementary Direct-Payment = (objective price - rice harvest price) × 85% - fixed direct payment

    The two bills presented in this report mainly strive to i) increase the objective price on the basis of rice production cost, ii) increase 85 percent to 90 percent, or iii) reflect harvest price of local region rather than that of national average, in case of calculating difference.

    When those changes happen, the cost can be different as well. therefore, this report sets up a ‘sample year’, and based on this premise, we have estimated the cost by adjusting several variables, so that three factors mentioned above were calculated individually and the outcomes was presented.

    We have suggested four scenarios to estimate the cost of each one, on the grounds that some of three factors can be combined as scenario with the aim of the bill to be passed.