Why do we need farmland? ----Farmland holding for non-agricultural purposes in Japan----

1. November10th,2015 National Chengchi University Why do we need farmland? ----Farmland holding for non-agricultural purposes in Japan---- Yoshihisa Godo Meiji Gakuin University godo@eco.meijigakuin.ac.jp

2. Conclusion • Apparently (only in written laws) Japan has good frameworks for farmland use • In practice, however, Japan’s farmland use is 画餅. • Farmland is often held for non-agricultural purposes. • As a result, serious inefficiency in Japan’s land use. • A new political dynamics: agricultural subsidies for manufacturing and commercial companies

3. Farmland for non-agricultural purposes Traditionally (interests of small-size farmers) • Farmland for saving inheritance tax • Farmland for conversion to non-agricultural uses Newly (interests of manufacturing and commercial companies) • Farmland for receiving subsidies & propaganda

4. Mr. Koshi-ishiOne of the most influential politician in the Upper House

5. However, no penalty Koshi-ishi’s violation of farmland use regulations: 1. He had a lease of farmland from the landowner without permission of agricultural commissions 2. He converted farmland without permission of agricultural commissions

6. Agricultural land use problems in Japan • Limited Flat Area • High Population Density • Short Rivers • Necessity of Close Communication among all the Farmers in the Community (e.g., for water use) • Environmental Externality Urban Land Use vs.Agricultural Land Use (Good for Non-agri. Use= Good for Farming) Competition vs.Order

8. Traditional Political Dynamics in Agriculture

9. An Example of “Alchemy of Farmland” Included in EAA EAA=Exclusively Agricultural Area designated by the local government Excluded from EAA

10. Capital gain from farmland conversion

11. Allocation of Agricultural Budget

12. Japan’s farmland use Apparently(=in written laws), well controlled.In reality, legal frameworks are not implemented sufficiently.

13. Agricultural Commission: • Responsible for carrying out farmland use regulations and frameworks • An consultative administrative body that belongs to a municipal government • Until 2014: elected commission members (local farmers) and appointed commission members • From 2015: appointed commission members only

14. PrewarJapan

15. Democracy（Privaterightassertionandcitizens‘participation)Democracy（Privaterightassertionandcitizens‘participation)

16. Highgrowthera

17. Today’s Japan

19. New Political Dynamics Escapism and anti-China sentiment Loosing self-confidence for their international competitive power in the manufacturing and commercial sector Citizens’ emotional supports for domestic agriculture and foods (citizens’ hostility to their neighbors’ farming practices) More concerns in receiving agricultural subsidies • More and more agricultural subsidies will be allocated for large-size companies in the commercial and industrial sectors, which support Abenomics. • The image of “ever strong agricultural groups” is totally wrong. • Citizens’ escapism is growing:

20. The essence of Abenomics Economic Program Present

21. Agriculture in Abenomics (1) Stock companies’ entry to farming businesses is great for Japanese economy Our entry to farming businesses is based on Abe’s initiative Economic Program Present We (stock companies) will start farming businesses. Give us subsidies.

22. Agriculture in Abenomics (2) New organization of agricultural land bank should be established We will find agricultural land according to Abe’s initiative Economic Program Present Arrange agricultural land for us (stock companies) instead of existing farmers

23. Agriculture in Abenomics (3) Reform of the Agricultural Commission System We will be new members of Agricultural Commissions Economic Program Present Farmers should not be engaged in farmland use planning