Soaring grain prices bury farm workers in debt

Severe grain price hikes have plunged farm workers in North Korea's North Hwanghae province into crippling debt for the upcoming winter. Many borrowed food and essentials in spring, now owing those amounts after a harvest share. With grain prices double what they were, many fear they'll have little else after repayment. "Merchants are appearing in Bongchon and Pyongsan counties to collect what they're owed as autumn distribution approaches," a North Hwanghae source told Daily NK.

"Once farm workers repay their debts this year, they'll have nothing left, so they worry about surviving the winter."

North Hwanghae, south of Pyongyang, is one of the country's key grain producers. Each fall, collective farms hand over the state's harvest share and split the remainder among households. This year's payout, called the harvest distribution, is crucial for surviving the lean spring season. Families often borrow grain and repay in cash or grain after harvest.

This year, soaring grain prices pit indebted farm workers against creditors like merchants and wealthy entrepreneurs known as "money masters." Grain now sells for about 50,000 won per kilogram, roughly double the spring price. Creditors demand repayment at today's prices, while borrowers typically agreed to repay 1.5 to 2 times what they borrowed.

A farm worker who borrowed 1 kilogram of corn at 5,000 won, promising 2 kilograms, now owes 30,000 won. Farm workers want to pay in cash to keep more food, but creditors insist on current prices. "Farm workers accept these terms to avoid losing credit access," the source said. "They'd rather absorb a loss now than anger lenders."

Despite flat or reduced harvest shares due to rising prices, Pyongyang partially paid workers in cash in 2025. However, the weakening won has made wages worthless. Many cannot clear debts after distribution, carrying the balance into the next year. This debt cycle traps rural poverty. "Even before, only a few rural households could afford white rice," the source lamented.

"Now it's rare to see it on holidays." Rural workers complain of toiling like oxen all year for little return. The state prioritizes its grain procurement quota over family survival, leaving farm workers to fend for themselves. "After paying debts, farm workers have no food left, so their lives never improve," the source emphasized.