Land leases seen as break in North's farm system

North Korea has begun a trial program in a northern province, which allots land to individual farmers to cultivate independently.

According to a government source, the program, in Hoeryeong and Musan in North Hamgyeong province, included fertilizer and equipment to increase agricultural production.

This is the first time in the North's history that land has been leased to individuals since the government introduced a collective farming system in 1952. Some North Korea watchers said this may lead to a complete reform of the farming system or even to private ownership of land.

"This seems to be like the application of China's contract farming," the source said, "which boosted production drastically after its introduction in 1978. It's interesting how similar the economic reform of North Korea is to the early reform policy of China."

In contract farming systems, individual farmers lease land and equipment from the government and independently manage the land, keeping excess production for themselves.

Authorities in North Korea have also raised restrictions on field size, from 100-165 square meters to 1,322 square meters.

The North reportedly has significantly decreased the number of office workers, directed surplus labor to factories and other centers of production and abrogated "Friday labor" under which workers were required for road maintenance.

North Korea reportedly has adjusted many prices, hiking the price of pork from 7 won a kilogram to 170 won and a bar of soap from 2 won to 20 won.

by Ko Soo-suk