Abstract
The purpose of this study is to analyze the adequacy of the current small-scale farm direct payment focusing on small farm criteria and to analyze the income distribution effect of smallscale farm direct payment. The detailed research contents are as follows. First, by using a cluster analysis the adequacy of the small-scale farm direct payments is analyzed. Second, the income distribution effect of small-scale farm direct payment is analyzed. To this end, we conduct a scenario analysis using different size limits and subsidy levels, which were issues at the time of the direct payment system reform. As a result of analysis, the current criteria which is set as 0.5 ha or less fails to match the actual characteristics of small scale farms. In addition, The small-scale farm direct payment was proven to have a positive effect on alleviating income inequality among farm households.
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