Japanese Agricultural Reform :Overview and assessment

1. Japanese Agricultural Reform :Overview and assessment Yoshiaki Iiguni 飯國芳明 Graduate Schoolof Kuroshio Science Kochi University 高知大学大学院黒潮圏海洋科学研究科

2. Purpose of this report • outline the Japanese agriculture and the problems • overview upcoming agricultural reforms • summarize the discussion on the reform

3. Japanese agricultural situation

5. Problem 1: The low level of food self-sufficiency ratio

7. Problem 2: The size of farming (ha)

8. Rice Business farm household Semi-business farm household Side-business farm household Wheat Wheat Bean Potato Cereal Vegetable Fruits Flower Milk Cattle Pig Fig. Production share of product by farmhousehold type

9. Problem 3: Aging of key agricultural workers Job is main activity

10. Estimation of the number of key agricultural workers (10,000) 2000 2010

11. Problem 4: Expansion of abandoned land

12. Problem 5: Boarder Policy of Rice tariff-ratequota (TRQ) system Upper limit of mark up Tariff (341yen/kg) Mark up Import price Quantity M.A with zero tariff Import with Tariff

13. Introduction of direct payment in Japan (2007) • Measures for Farm Management Stabilization (MFMS) • Measures related to Rice Policy Reform (MRPR) • Measures to Conserve and Improve Rural resources (MCIR)

14. Purpose of measures

15. Measures for Farm Management Stabilization (MFMS) • Direct Payment for Land-extensive farming (DPL) • Measures for Mitigation of Revenue Fluctuation (MMRF)

16. Measures for Farm Management Stabilization (MFMS) Measures for Mitigation of Revenue Fluctuation Direct Payment for Land-extensive farming

17. Eligible farmers • Certified farmers as core-farmer > 4ha (> 10ha in Hokkaido) • Village farming collective > 20ha

18. Measures related to Rice Policy Reform (MRPR) • Measures to Create Producing Areas (MCPA) • Grant to create production area • Grant for securing basis of rice farming income • Grant for fixing a new system of adjusting the supply and demand

19. Measures to Conserve and Improve Rural resources (MCIR) Farmers group Direct payments to environmental farming Direct payments to Common activities Local community

20. Features of direct payment in Japan

21. Eligible farmers Measures for Farm Management Stabilization (MFMS) • Certified farmers as core-farmer > 4ha (> 10ha in Hokkaido) • Village farming collective > 20ha

22. Features of direct payment in Japan

23. Measures to Conserve and Improve Rural resources (MCIR) Farmers group Direct payments to environmental farming Direct payments to Common activities Local community

24. Features of direct payment in Japan

25. Direct Payment for Land-extensive farming .

26. The number of application and the area of Direct Payment for Land extensive farming (F.Y. 2007)

27. The number of application of Direct Payment in MCIR (F.Y. 2007)

28. Discussion on the reform Self sufficiency ratio as a political object affirmative Critical group The current reform Range of targeted farmers restrictive Non-restrictive Big Bang negative Source: Y. Tashiro

29. A critique by Professor Kajii

30. Concluding remarks • It should be appreciated that Japanese government introduced original direct payments based on its agricultural structure in the reform. The direct payments are not just duplicated measures of European countries. • But, the measures are “government-led”, though the government emphases on the importance of “market-led” measures. • The “government led” measures might not be able to achieve efficient resource allocation (see. Kajii). • We should improve the measures, and design more “market-oriented” programs.