Japanese Agricultural Reform :Overview and assessment

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Japanese Agricultural Reform Overview and
assessment
Yoshiaki Iiguni ???? Graduate School of Kuroshio
Science Kochi University ?????????????????
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Purpose of this report

• outline the Japanese agriculture and the problems
• overview upcoming agricultural reforms
• summarize the discussion on the reform

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Japanese agricultural situation
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(No Transcript)
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Problem 1 The low level of food self-sufficiency
ratio
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(No Transcript)
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Problem 2 The size of farming (ha)
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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 farm
household type
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Problem 3 Aging of key agricultural workers
Job is main activity
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Estimation of the number of key agricultural
workers
(10,000)
2000
2010
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Problem 4 Expansion of abandoned land
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Problem 5 Boarder Policy of Rice tariff-rate
quota (TRQ) system
Upper limit of mark up
Tariff (341yen/kg)
Mark up
Import price
Quantity
Import with Tariff
M.A with zero tariff
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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)

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Purpose of measures
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Measures for Farm Management Stabilization (MFMS)

• Direct Payment for Land-extensive farming (DPL)
• Measures for Mitigation of Revenue Fluctuation
  (MMRF)

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

• Certified farmers as core-farmer
• gt 4ha (gt 10ha in Hokkaido)
• Village farming collective
• gt 20ha

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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

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Measures to Conserve and Improve Rural resources
(MCIR)
Farmers group
Direct payments to environmental farming
Direct payments to Common activities
Local community
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Features of direct payment in Japan
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Eligible farmers
Measures for Farm Management Stabilization (MFMS)

• Certified farmers as core-farmer
• gt 4ha (gt 10ha in Hokkaido)
• Village farming collective
• gt 20ha

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Features of direct payment in Japan
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Measures to Conserve and Improve Rural resources
(MCIR)
Farmers group
Direct payments to environmental farming
Direct payments to Common activities
Local community
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Features of direct payment in Japan
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Direct Payment for Land-extensive farming
.
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The number of application and the area of Direct
Payment for Land extensive farming
(F.Y. 2007)
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The number of application of Direct Payment in
MCIR
(F.Y. 2007)
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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
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A critique by Professor Kajii
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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.