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Report No.220902
Vol.22
No.9
May 2005


NEWS

- Domestic -

The New Basic Plan Creates Japanese Style of Direct Payment

On March 9, the Council on Food, Agriculture and Rural Area Policies submitted a draft Basic Plan for Foods, Agriculture and Rural Areas to Mr. Yoshinobu Shimamura, Minister of Agriculture, Forestry and Fisheries in reply to inquiries made earlier on this question. The cross-product sector measures for the stabilization of the farming businesses of "core farmers" to be created in FY2007 is the new feature of the next basic plan. Community farming organizations that meet certain requirements are also given a place in the new stabilization measures. The target of food self-sufficiency ratio on a calorie basis remains the same at 45% as with the current basic plan, meaning that the target year is pushed forward by yet another five years. Discussions will now focus on how the measures for the stabilization of the farming businesses will be translated into implementation language.

The new basic plan has been under study by the Council's Planning Sub-Committee since December, 2003, where the following three points have been under major focus: (i) shifting to new measures for the stabilization of the farming businesses, (ii) the reform of policy measures in favour of "core farmers", and (iii) the establishment of resources and environmental conservation policies. 

With regard to the measures for the stabilization of the farming businesses, the Council's draft plan proposes creation of new measures to incorporate cropping of rice, wheat and barleys, soybeans etc. on paddy fields as well as large-scale upland farming on the island of Hokkaido to follow suit of the policy measures applied in the United States and the European Union. After heated discussions on who should be admitted in the category of "core farmers", the draft plan proposed to allow, in addition to "approved farmers", the community farming entities which embrace part-time and small-size farmers in them as and when these entities are organized and incorporated.

The size of farming operation and the details of improved farming business required for them to benefit from the stabilization measures will be finalized by autumn. The Council's draft basic plan provides for flexibility by saying "local conditions be taken into account sufficiently".

With respect to the food self-sufficiency ratio for the target year of 2015, the target figure in terms of calorie should be the basis and the target ratio of 45% should remain as in the present plan, while a new target should be set based on the value of production with the figure of 76%, which represents 6% hike compared to the present.

Another noteworthy feature of the new basic plan is that a timetable will be made for the plan to make a check on progress of implementation each year. Also of note is that a campaign target is set to double export of agriculture, forestry and fishery products from what is around 300 billion yen at present within five years to 2009.

In the meantime, the government Headquarters to Promote Food, Agriculture and Rural Areas Policies (chaired by Mr. Junichiro Koizumi, the prime minister) convened a meeting on March 22 at the prime Minister's official residence and confirmed the points to be promoted by all the government ministries for the agricultural policy reform, including nation-wide undertaking of food awareness education, promotion of export of agriculture, forestry and fishery products, establishment of agricultural structure with the "core farmers" given a central role for achieving the goal of enhanced target of food self-sufficiency ratio. Prime Minister Koizumi directed ministers concerned to promote the agricultural policy reform with an aggressive posture. The Headquarters will make a check on progress of the agricultural policy reform each year including the state of progress in food self-sufficiency. The new basic plan was decided by a meeting of the Cabinet ministers on March 25.

Main points

Outline and timetable

Food self-sufficiency ratio in the target year 2015

   Calorie basis: from 40%  to 45%

   Value basis:  from 70% to 76%

 

-  A consultative body established jointly by the national and local government and agricultural organizations to formulate "Action Plan" laying down the major roles to be played by each of  them;

- Actions implemented will be checked after each year of implementation to reflect the result for next year's policy measures.

Cross-product sector measures for the stabilization of the farming businesses

(a Japanese-style system of direct payments) 

-  Details of the system finalized by autumn this year and the system introduced from FY2007;

-  Beneficiaries will be "approved farmers" and community farming entities under certain conditions. Requirements for eligibility to be decided with local conditions taken into account.

The resources conserving policies

 

-  Fact finding survey conducted on local resources endowment and methods of conservation and management studied during FY2005 ;

-  Efficacy of model conservation measures examined in FY2006 and conservation measures introduced in FY2007.

The environment preserving policies

 

-  Environment preservation standards formulated within this fiscal year to be used as requirements for rendering various assistance measures;

- Assistance measures introduced from FY2007 to pilot undertakings;

-  100,000 eco-farmers created by the end of FY2009.

Agricultural land system

 

-  Concentration of agricultural land use in the hands of "core farmers" promoted and agricultural land prevented from newly left idled;

-  agricultural land kept nation-wide at 4.5 million hectares in 2015;

-   The agricultural land utilization ratio raised to 105% by FY2015. 

Export promotion 

-  The export value doubled with agricultural, forestry and fishery products and of food products.

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