Report No.240202

NEWS

- Domestic -

MAFF Asks 3,151.4 billion in Outline Budget Request for FY2007

The Ministry of Agriculture, Forestry and Fisheries (MAFF), on August 24, finalized an outline budget request for the FY 2007. The sum of requested budget amounts to 3,151.4 billion. That is 13.4% more than FY2006 initial budget but is 4.5% less than the requested outline budget of that year. As the FY2007 signifies the first year of implementing agricultural policy reform, the list of policy measures was prioritized with the budget request of 413 billion enlisted for the framework of new farming business and incomes stabilization measures finalized jointly by the government and the ruling parties at the end of July.

The outline budget request is compiled along the lines of 'New 2006 Policy on Agricultural Policies Administration for the 21 Century' consisting of pillars including 'New Challenges for the Strengthening of Competitive Capacity of Agriculture' to be undertaken through non-product specific farming business stabilization measures and rice policy reform promotion measures, as well as 'Pursuing of New Possibility from Offensive Policy Angle' to increase agricultural export.

For the non-product specific farming business stabilization measures, which is the biggest point of the policy reform, a sum of 170 billion is asked for. For the rice policy reform promotion measures, a sum of 193.9 billion is asked for including 176.7 billion for the production area development measures. 30.3 billion is asked for the agricultural land, water and environment measures for enhanced resource conservation.

The upbringing and securing enough number of core farmers will be undertaken over the three years designated as 'intensive reform period,' commencing in FY2007. One stop window will be installed at each of the 1,000 'Council for General Support in the Fostering of Core Farmers' as a single desk of various supports to core farmers, and thick support will be incepted for them in the area of financing also.

For 'the offensive agricultural policy,' promotional measures are devised towards doubling of export of agriculture, forestry and fishery products and food products in a five year period to 2009. Much bigger sums compared to the current budget are being billed also for food awareness education and the promotion of local consumption of local products. For the measures to promote introduction of domestically produced bio-fuels, a sum of 10.6 billion is billed.

MAFF also finalized its request for organization and staffing for FY2007. It would set up an 'office for the management stabilization measures (both name and translation provisional)' under the Management Improvement Bureau, Management Improvement Policy Planning Division in order to ensure smooth implementation of the non-product specific management stabilization measures. Corresponding systems will be reinforced at the level of regional agricultural administration offices and district agriculture offices.

With a view to backing use promotion of biomass, Minister's Secretariat, Environment Policy Division will be reorganized as 'Environment & Biomass Policy Division,' which will have an 'office for the promotion of biomass.'

Agricultural Production Bureau's Vegetable Division and Fruit and Flower Division will be reorganized to form a 'division for horticulture' and a 'division for the development of new technology' which will be responsible for new technology and cross-sectional tasks such as promoting local consumption of local products.

With a view to reinforcing a structure to back-up negotiations in the World Trade Organization and of economic partnership agreements, policy information analysts will be instituted at the Policy Research Institute, Ministry of Agriculture, Forestry and Fisheries. Besides, structures for export promotion and for inspection and guidance of JA credit business will be strengthened.

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