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MAFF Requests 11.2% Increase for FY 2006 Budget
－ Also Sections Dealing with Internationalization Reorganized
The Ministry of Agriculture, Forestry and Fisheries (MAFF), on August 26, finalized outline budget request for the FY 2006. The scale of requested budget amounts to 3,299.6 billion yen. The outline request puts priorities on preparing for the introduction, in FY 2007, of non-product specific farm business stabilization measure (a Japanese-style direct payment), and on measures to implement the new Basic Plan for Foods, Agriculture and Rural Areas, which was adopted by the cabinet meeting in March, this year.
Main pillars of the request include i) the upbringing and securing enough number of core farmers and the promotion of structural reform of agriculture, ii) the reinvigorating of rural areas based on utilization of local resources, and iii) the promoting of reform of food supply & consumption system.
Budgets for propagation and administration are also incorporated in connection with the selection to be made in 2006 on who will be beneficiaries of the non-product specific farm business stabilization measure.
The budget will also provide for accelerating the organization and incorporation of community-operated farming entities. This is being done because the nurturing of community entities which are substantially engaged in farming operations,
－ beyond just mutual consultation and coordination among community members on when to spray chemicals over what are otherwise individually tilled fields, for example,
－ holds key to the upbringing of core farmers (farming entities). At the same time, the budget request newly institutes an interest-free loan to the Agricultural Land Holding Rationalization Corporations
－ which are authorized to intervene in the transfer of titles to farm land to expand size of farming operation and concentration of the use of farmland
－ as a means to promote the concentrating of the use of farmland in the hands of core farmers/farming entities. These structure reform-related measures for FY 2006 are either developed from what were simply appropriations to cover preliminary study/survey expenses in the 2005 budget or newly listed in the request for 2006. The request also calls for an increase in the amount of "Grant for Creating a Strong Agriculture," which was instituted in the current fiscal year.
For the policies of reinvigorating rural areas, experimental projects will be implemented with an aim to identify appropriate detail programs for measures to preserve resources such as agricultural land and irrigation water.
Kyosei to tairyu ["symbiosis and exchange"] between urban and rural areas will also be promoted.
For the consumer-oriented policies, increased appropriations are requested for the propagation of "Balanced Food Guide" and for activities to promote food awareness education, as well as for consumption increasing measures
of rice and vegetables etc. An appropriation for export promotion will be doubled to achieve the doubling of agricultural exports, a symbol of "aggressive agricultural policies."
The 3,299.6 billion yen budget request for 2006 compares with the 3,421.2 billion yen requested for the 2005 budget. Actual appropriation for the FY 2005 fell below the order of 3 trillion yen and was fixed at 2.967.2 billion yen as a result of consultations with the Ministry of Finance.
On the next day, i.e. August 27, MAFF decided on what requests to make for the organizational set-up and staffing for the FY 2006. According to the request, the three divisions under Minister's Secretariat International Department, i.e. International Economic Affairs, International Trade Policy Coordination and International Trade and Tariff will be consolidated to a new "International Economic Affairs Division." The organizational change for the FY 2006 is mainly meant for a stronger structure for dealing with internationalization and is intended to solidify the section for handing international negotiations under the World Trade Organization etc.
Also, the international affairs office under Food Safety and Consumer Affairs Bureau's Food Safety and Consumer Policy Division will be enhanced to become an international affairs division to solidify handling of animal and plant quarantine issues.
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