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Framework of Core Farmer-centered Farming Business & Income Stabilization Policy Finalized
The government and the ruling parties, on October 27, finalized a framework of new farming business and income stabilization measures that incorporate non-product specific farming business stabilization measures (Japanese-style direct payments), which will be introduced from 2007 crop year. This represents a shift from product specific price support policies embracing all producers to an income policy with focus on core farm entities, as an official of the Ministry of Agriculture, Forestry and Fisheries (MAFF) put it saying, "conventional methods of uniform support are altered." The government plans to submit relevant bills to the ordinary session of the Diet (Japanese parliament) next year and to accelerate the reform of agricultural structure so it will be operated predominantly by core farming entities.
Yardsticks of eligibility for payments under the new measures are set at 4 hectares for individual holdings in prefectures other than Hokkaido, 10 hectares for holdings in Hokkaido, and 20 hectares for community farming organizations. At the same time, in answer to concerns of the ruling parties seeking that "local conditions" be taken into account, a way was paved for smaller-sized farms to be treated eligible under special cases provisions, which face particular difficulty in expanding the scale of operation being located in mountainous areas, remote islands etc.
To what extent the core farming entities will evolve depends on how successful the campaign will be to foster them as promoted jointly by agricultural organizations and the government. Speaking of agricultural lands to be brought under cultivation by core farm holdings, Agriculture Minister Mineichi Iwanaga revealed a view saying, "somewhere between 50 to 60 percent of land concentration is to be achieved." The government's perspective on agricultural structure drawn up in March, 2005 envisions concentration of between 70 to 80 percent of agricultural lands in the hands of core farm entities in 10 to 15 years time.
The shift to income policy is to make support policy compatible with international rules under the World Trade Organization. MAFF, on November 4, set up "the Agricultural Policy Reform Promotion Headquarters" with Mr. Shoichi Nakagawa, Minister of Agriculture, Forestry and Fisheries at the top, a body to promote agricultural policy reform in a joint effort by the government and agricultural organizations, in order to facilitate steady steps of reforming agricultural policies including the drawing up of detail measures under "the Framework of Farming Business and Incomes Stabilization Measures."
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Main Points of the
Stabilization Policy Framework
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Farming business stabilization measures: |
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- To accelerate structural reform, limiting the payment eligibility to core farming entities;
- To allow community farming organizations eligible as core farming entities;
- To make Japanese-style direct payments to facilitate the size expansion of operations;
- To adapt measures to WTO rules. |
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Promotion of rice policy reform: |
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- To change support measures beginning in FY 2007;
- To introduce new mechanism of demand and supply adjustment; |
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Resources and environment conservation measures: |
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- To grant assistance to activities to conserve agricultural land and water;
- To support environmental agriculture on full scale. |
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