Chapter 3 - maff.go.jpChapter 3 Toward the sustainable development of agriculture 37 The production...

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⎯ Toward the sustainable development of agriculture ⎯

(Farmers’ market)

(Paddy fields before rice harvesting)

Chapter 3

Japan is facing the urgent need for a recovery of sustainable agriculture. In response, this chapter focuses on “domestic production,” “farm management, human resources and farmland to support production,” “efforts to increase agricultural income,” “activities of women and elderly people,” “efforts in agriculture that are in harmony with environmental conservation and biodiversity” and “efforts in research and technology development.” The following are the main trends and issues discussed here:

In agricultural production in Japan, there has generally been a decrease in all items. Efforts should be focused on achieving production targets in fiscal 2020 while addressing issues associated with, for example, quality and cost.

The total agricultural income in the last two decades has decreased by half and the profitability of agriculture has decreased significantly. To address these circumstances, the following considerations should be taken into account: 1. As there are many paddy villages with no principle farmers, and with the decreasing

number and aging of farmers becoming more serious in the next 10 years, measures should be taken to ensure the existence of a wide variety of farmers, and particularly to encourage young people to start farming.

2. The total area of farmland is steadily decreasing. To stop this trend, more efforts should be put into the effective use and acquisition of farmland.

3. Financial assistance programs that meet the characteristics of a variety of farmers should be provided.

To increase agricultural income, in addition to the Income Support Direct Payment Program and other government-sponsored support programs, farmers themselves should make efforts to increase sales prices of their agricultural products, increase sales volumes, and reduce costs.

More assistance and support should be offered to female farmers, who account for the majority of all farmers, to encourage them to participate in social and business management activities, as well as to elderly farmers.

Efforts to support sustainable agricultural production should include research and development to promote environmentally sound agriculture, to promote agriculture, forestry and fishing in harmony with biodiversity, and to improve the food self-sufficiency ratio.

34

Trends in domestic agricultural production

The total agricultural output, after reaching a peak of ¥11.7 trillion in 1984, decreased to

¥8.5 trillion in 2008 due to both production and price factors. Price and production factors contributed on a roughly 50/50 basis to the decrease in the

entire agricultural production value. The price factor accounted for 70% of all factors contributing to the decrease in rice production, while the decrease in the rice production in turn accounted for one-third of the decrease in all agricultural production.

3-1 Changes in total agricultural output

trillion yen ¥11.7 trillion (1984) ¥11.5 trillion (1990)

¥9.1 trillion (2000) ¥8.5 trillion (2008)

¥1.6 trillion

¥3.3 trillion

¥0.9 trillion

¥2.0 trillion

¥3.9 trillion

Others

Livestock (dairy cattle, pigs, beef cattle, poultry, others)

Fruit

Vegetables

Rice

(Estimates)

¥1.1 trillion

¥2.6 trillion

¥0.7 trillion

¥2.1 trillion

¥1.9 trillion

Source: MAFF, “Statistics on Agricultural Income Produced” Notes: “Others” consists of wheat and barley, miscellaneous grains, pulses, root crops, flowers and ornamental plants,

industrial crops, other crops, and processed agricultural products. 3-2 Factors contributing to the decrease in domestic production value by

item (FY1990-FY2005) Entire

agricultural products

Rice Vegetables Fruit Dairy products

Beef cattle Pigs Hen eggs Chickens

Price factor

Production factor

One billion yen

Source: Prepared by MAFF based on MAFF, “Economic Accounts for Agriculture and Food Related Industries” Notes: 1) Changes in production value ( V) between 1990 and 2005 were broken down into the price factor ( P×Q) and the

production factor (P× Q). (Confounding factors ( P× Q) were not taken into account because they were small.) The changes in production volumes were calculated using the formula below:

V = (P + P) x (Q + Q) – P x Q (V: production value, P: price, Q: production quantity) 2) After 2007, factor analysis by item was not possible due to the adoption of the program of direct payment for paddy-

and upland- field farming.

Chapter 3 Toward the sustainable development of agriculture

35

With regard to trends in agricultural output by region, a significant decrease has been

observed in the Tohoku, Hokuriku, Kinki and Chugoku regions, where rice production is the main agricultural activity, while only a smaller decrease has occurred in Hokkaido, Kyushu, and other regions, where livestock farming and vegetable production are the main activities.

From 1990 to 2009, the total consumer price index excluding fresh foods increased by 7.3%, while the disposable income of working families deceased by 2.8%. The consumer prices for rice, fresh vegetables and fruit, and other products decreased significantly in the same period, providing great benefits to consumers.

Stagnant prices for agricultural products may, in the future, lead to a decrease in domestic agricultural production and an increase in prices, and may make it difficult to fulfill the multifunctional roles of the multiple functions of agriculture and rural areas. With these benefits and possible impacts in mind, it is therefore important for the entire nation to support agriculture and rural areas.

3-3 Changes in agricultural outputs by region

Agricultural output (¥100 million)

Product categories and percentages in the total output of the prefecture1st 2nd 3rd

Nationwide

Hokkaido Prefectures (other than

Hokkaido) Tohoku

Hokuriku Kanto-Tosan

Tokai Kinki

Chugoku

Shikoku Kyushu

Okinawa

Livestock

Livestock

Vegetables

Vegetables

Vegetables

Vegetables

Vegetables

Vegetables

Vegetables Vegetables

Vegetables Vegetables

Rice

Rice

Rice

Rice

Sugarcane

Vegetables

Rice

Rice

Rice

Fruit

Fruit

Be ef cattle

Be ef cattle

Rice Rice

Chickens

Chickens

Chickens Rice

Rice

Fruit

Fruit

Flowers and ornamental plants

Pigs

Source: MAFF, “Statistics on Agricultural Income Produced” Notes: Tosan Region consists of Yamanashi and Nagano Prefectures.

3-4 Changes in consumer unit prices for major food products and

the number of purchases per person (1990-2009)

(Rat

e of

cha

nge

in u

nit p

rices

)

(Rate of change in the number of purchases per person)

Soy sauce

Wheat flour

Margarine Miso

Eggs Katsuobushi

Mochi

Beef

Salted and dried fish

Fresh fish and shellfish

Sugar

Fresh fruit

Ham Fresh vegetables Instant curry mi x

TofuChicken

Pork Sausages

Cooking oils

Butter

Mayonnaise and dressing sauces

Bread

Cheese

Source: Prepared by MAFF based on the “Family Income and Expenditure Survey”, MIC Notes: 1) Households with two or more members (excluding agricultural, forestry and fisheries households) 2) The rates of change in unit prices were obtained by comparing the unit prices in 1990 and 2009, while the rates of

change in the number of purchases were obtained by comparing the numbers of purchases in the two years.

36

The consumption of rice per person per year decreased by half from 118.3 kg in fiscal

1962 to 59.0 kg in fiscal 2008 due to diversification of the diet. As a result, the domestic production of rice continued to decrease and, in fiscal 2009, the planted area totaled 1,620,000 hectares and the production volume 8,470,000 tons.

The demand for rice is expected to further decrease as the population of Japan decreases and ages. Efforts therefore should be made to increase the consumption of rice, and planting and production of rice for consumption as a staple should be planned in a way to meet consumer demand.

It is also important to increase the production of rice for rice flour and feed, and to promote double cropping of paddy rice and wheat/barley in order to secure a stable food supply through effective use of paddy fields.

The rice consumption at eating establishments and for home-meal replacements (lunch boxes, retort-packed rice, frozen cooked rice, etc.) tends to increase. Various rice species that meet the diversified needs of these industries should be produced and distributed.

3-5 Changes in the planted area and production volume of paddy rice

3-6 Changes in planted areas of rice for rice flour and rice

for livestock feed Yields per 10 a

10,000 ha Production volume (The scale on the right side)

(Target)

10,000 tConsumption volume (The scale on the right side)

Plan

ted

area

Source: MAFF, “Statistics on Crops” and “Food Balance Sheet”

Production in 2008

Production in 2009

Rice for livestock

feed

Rice for rice flour

Source: Surveyed by MAFF Notes: These are areas used for planting rice

for approved alternative uses (for rice flour and livestock feed) under the rice production adjustment program.

3-7 Changes in percentages of rice consumption for household meals,

at eating establishments, for home-meal replacement, and for other purposes in the total rice consumption (per person per year)

Free distribution

Farmers’ personal consumption

Consumption for household meals

Consumption for eating out and for home-meal replacement, etc.

Source: Estimated by MAFF based on its “Food Balance Sheet” and “Survey on Current Volume of Rice Production by

Producers” and MIC’s “Family Income and Expenditure Survey” and “National Census”


37

The production of wheat and barley started increasing again in around 2000. As for wheat,

however, a decrease was observed in 2009: the planted area for 2009 production was 210,000 hectares and the production volume was 670,000 tons due to the low temperature, lack of sunshine and continuous rain in Hokkaido, and wet damage caused by rain mainly in the Tokai and Kyushu regions. Unlike wheat produced overseas, domestic wheat varies in protein content and is not suitable for making bread and Chinese noodles. It is therefore necessary to develop new species with high yields and high suitability for noodle and bread making and promote their use, to encourage producers to apply basic techniques of producing, and to establish processing techniques with the aim of using domestic wheat produced originally for making Japanese noodles to also make bread and sweets.

The production of soybean started showing again an increasing trend in around 1995, but a slight decrease was observed in 2009: the planted area for 2009 amounted to 150,000 hectares and the production volume 230,000 tons, due to the continuous rain and lack of sunshine in Hokkaido and heavy rain in Kyushu. Domestic soybeans are regarded as being high quality and are frequently used for making foods such as cooked beans, tofu, and aburage. However, because soybean seeds are planted in the rainy season in Japan, they are susceptible to water damage, rendering their yield unstable. For this reason, those categorized into the first grade account for only a small portion of the total. To overcome this drawback, efforts should be made in the future to build stable business relationships through contract production, develop new species, and spread the use of new technologies such as low-cost energy-saving stable production technology that meets climate and soil conditions.

3-8 Changes in wheat planted areas and production volumes 3-9 Wheat use rates by purpose and the

self-sufficiency ratio (FY2007) Yields per 10 a

10,000 ha Production volume

(The scale on the right side)

(Target)

10,000 t

Upland field

Paddy field

Source: MAFF, “Statistics on Cultivated Land and Planted Area” and “Statistics on Crops”

(Total demand of wheat by purpose)

10,000 t

For livestock feed 71

For industrial use 36

For food529

Dem

and

of w

heat

use

d fo

r foo

d Japanese noodles

12%Chinese noodles

8%Other kinds of noodles

15%

Bread 30%

Sweets 14%

Home-cooking4%

Others18%

Domestic products (70%)

(Wheat for food use rate by purpose, the self-efficiently ratio)

Source: Surveyed by MAFF Notes: 1) The figures in brackets are the wheat self-

sufficiency ratio for each purpose. 2) Those used for livestock feed include those for

seed and for depletion, and those for industrial use include those for miso and soy sauce.

3-10 Changes in soybean planted areas and production volumes 3-11 Demand of soybean for different

purposes (FY2007)

10,000 ha Production volume (The scale on the right side)

(Target)

10,000 t

Upland field

Paddy field

Yields per 10 a (total)

Source: MAFF, “Statistics on Crops” Note: The planted areas in 1980 to 1990 were calculated

based on published data.

Livestock feed, seed,

etc. 5%

Oil3.04

million t71%

Domest

ic prod

ucts (21

%)

Food 1.05

million t24%

Tofu, aburage 48%

Cooked beans/ready-to-eat dishes 3%

Natto 12%

Miso/soy sauce 17%

Others 20% Descriptions of those for food

Domestic products (25%)

Source: Prepared by MAFF Notes: The figures in brackets are the soybean self-sufficiency

ratio for each purpose. The overall self-sufficiency ratio of soybeans for food for fiscal 2008 was 25%.

38

Roughage accounts for 20% of the entire livestock feed, and concentrate for 80%. Of

the total, domestic roughage accounts for less than 80% and domestic concentrate for 10%. The entire livestock feed self-sufficiency ratio is 26%.

After reaching a peak of 1,054,000 hectares in 1987, the planted area of feed crops had been decreasing until 2008, when it increased, albeit slightly, to 900,000 hectares.

The international price of feed grains has been relatively high compared with that in the past, significantly affecting livestock farming management. Efforts should therefore be focused in the future on increasing the planting of feed crops, using more rice for livestock feed that can be used as an alternative to concentrate feed, increasing the production of the total mixed ration (TMR) using self-supplied livestock feed and unused regional resources, and promoting more frequent use of Ecofeed (livestock feed produced from food waste). It is also important to expand the outsourcing of feed production to contract producers in order to reduce labor inputs.

3-12 Current feed self-sufficiency ratio and target ratio in the future

Entire livestock feed

Roughage

Hay Silage (Fermented roughage) Grass Soiling maze Whole crop silage of rice Rice straw

Grains Corn Sorghum, barley, rice Bran Fusuma (Wheat bran) Rice bran Residues Soybean meal Beet pulp Beer lees/Tofu residue Animal by-product feeds Fish meal, etc.

Concentrate feed

FY2003 FY2008 Estimate

FY2020 Target

Import Import

Import Import Import

Domestic Domestic Domestic

Domestic Domestic Domestic

Hay Rice straw Rice WCS

Food residues, etc. Unused resources Bran/Residues Rice for livestock feed

Source: Prepared by MAFF Notes: Fusuma is the seed coat of wheat. Beet pulp is the fibrous material that remains when sugar is extracted from beets.

3-13 Changes in the planted area and production volume of feed crops

1,000 ha

(Target)

TDN 1,000 t

Prefectures

Hokkaido

Production volume(The scale on the right side)

Source: MAFF, “Statistics on Cultivated Land and Planted Area” and “Statistics on Crops” Notes: TDN or total digestible nutrients is the unit of the amount of nutrients contained in the feedstuff, which is used to

describe the total nutrients digestible by livestock and usable as energy.


39

Trends in farm management and situations of farm and farmland supporting agricultural production

Net agricultural production, which corresponds to agricultural income, has decreased by

half from its peak in fiscal 1990 to ¥3.3 trillion in fiscal 2007, mainly due to a decrease in prices of agricultural products, a reduction in production volumes, and an increase in the material costs for agricultural production. The trade term index in agriculture dropped significantly from 128 in fiscal 1993 to 86 in 2009.

The gross income per farm household has also been on a downward trend: The gross income per business farm household decreased from ¥5.73 million in 2004 to ¥5.46 million in 2008. Commercial farm households with an agricultural income of ¥3 to ¥5 million accounted for 7% (130,000 households) of all commercial farm households, while those with ¥5 million or more also accounted for 7% (120,000 households) of the total.

3-14 Changes in net agricultural production

¥1 trillion

FY1980

Agricultural output

Net agricultural production value Depletion expense of f ixed capital, etc.

Intermediate input

Source: MAFF, “ Economic Accounts for Agriculture and Food Related Industries Notes: 1) The agricultural output is the total of the services and values of products obtained as a result of agricultural

production activities that are evaluated based on prices applied when they are delivered from the farms. 2) The intermediate input is the total costs of goods and services used for the agricultural production, which include

seeds and seedlings, fertilizers, livestock feeds, agricultural chemicals, and repair of farm machinery. 3) Depletion expense of fixed capital, etc. = Depletion of fixed capital + Indirect taxes – Current subsidy (Deduction) 4) Net agricultural production value = Agricultural output – Intermediate input – Depletion expense of fixed capital, etc.

3-15 Changes in the trade term index in agriculture (Y2005 = 100) 3-16 Percentages of commercial farm households

by agricultural income group (2007) Index

(Estimate)

Trade term index in agriculture

Index numbers of commodity prices in agriculture (General)

Index numbers of materials for agricultural production (General)

FY1980

Source: MAFF, “Statistics on Commodity Prices in Agriculture”

Notes: 1) Years after 1994 are calendar years. 2) Trade term index in agriculture = Index number of

commodity prices in agriculture (general) / Index number of materials for agricultural production (general) x 100

3) The figures in brackets are year-on-year percentage changes.

(Unit: 10,000 households, %)

Agricultural income

Number of commercial farm households Composition ratio

<¥ 1 million

>¥10 million

250,000 householdsSource: Estimated by MAFF based on its “Statistics on Farm

Management and Economy by Management Type (Individual Management)” (custom-ordered tabulation) and “Survey on Movement of Agricultural Structure”

40

Farm operators cultivating 3 hectares or more of paddy fields reduced their operating

costs per 60 kg of rice by 3.5% from the costs in 1998. However, agricultural income fell by 40% in ten years from 1998 to 2008 due to a decrease of 21.3% in rice prices.

As for the business performances for different farming types, agricultural incomes fell significantly for most farming types. The agricultural income per hour of family labor input is lower than the income in any other industry.

3-17 Changes in incomes per 60 kg of rice of farm operators with

3 hectares or more of rice paddies

Rice p rice (re ven ue fo r farm hou sehold )

Operating cost

Income (Ri ce p rice – Operating co st )

Increase/Decrease Rate (%)

(in co mp a ri so n wi th 1 9 98 )

(Unit: Yen/60 kg)

Source: MAFF, “Production Costs for Rice and Wheat”; National Rice Exchange and Price Formation Center , “Rice Tender

Results” Notes: 1) The rice prices (revenue for farm household) above are those per 60 kg. The price for each year was calculated by

deducting ¥1000, the difference from the relative price, and ¥2000, the distributing cost, from the annual average price published by the Rice Exchange and Price Formation Center.

2) The operating cost consists of the costs for material and employed workers, interest expenses and land rents. 3-18 Changes in agricultural income per hour by farming type

(Changes in agricultural income per hour)

y en

¥10,000

(Ref erence) Wages per hour in other industries

Pad

dy f

ield

, co

mm

erci

al fa

rmho

useh

old

Annual agricultural income (Changes in annual agricultural income)

(Ref erence) Wages in other industries

Pad

dy f

ield

, bu

sine

ss fa

rmho

useh

old

Upl

and

farm

(H

okka

ido)

Ope

n-fie

ld v

eget

able

far

m

Fac

ility-

use

vege

tabl

e fa

rm

Fru

it an

d nu

t pl

anta

tion

Rai

sing

flo

wer

s ou

tdoo

rs

Flo

ricul

ture

indo

ors

Dai

ry

Bree

ding

cat

tle

Fatt

ing

cattl

e

Fat

ting

pigs

Chi

cken

s fo

r egg

s

Bro

ilers

Man

ufac

turin

g co

mpa

nies

with

5 to

9 em

ploy

ees

Empl

oyee

(m

ale)

At-

hom

e ca

regi

ver

Com

mer

cial

bus

driv

er

Part

-tim

e w

orke

r(w

aite

r/w

aitr

ess

at a

n ea

ting

esta

blis

hmen

t)

Source: MAFF, “Statistics on Farm Management by Farming Type (Individual Management)”; MHLW, “Basic Survey on Wage

Structure” Notes: 1) The wages in other industries above include allowances and other cash payments and annual bonuses before

deducting income taxes and other taxes. 2) The wages per hour for employees other than part-time workers in other industries were calculated by dividing the

salary within the assigned pay range by the actual working hours without overtime. 3) The wages for part-time workers = the wage per hour within the assigned pay range x the actual working hours

without overtime per day x the actual number of working days x 12 + annual bonuses, etc.


41

The number of commercial farm households, particularly business farm households, has

decreased significantly by 60% from 820,000 in 1990 to 350,000 in 2009. This decrease was mainly caused by the cessation of farming and the transition from business farming to semi-business farming.

As for major agricultural items produced by different types of farm households, of upland field products, vegetables, fruit and nuts, and livestock products were mostly produced by business farm households. Rice produced by business farm households, however, accounted for less than 40% with that produced by semi-business farm households comprising the majority. As the number of farmers decreases and those engaged in farming continue to age, it is necessary to provide an environment that facilitates regional farm operators, not only full-time business farm households but also part-time farm households, to expand their business.

3-19 Changes in the number of farm households according to management type

Due to transition to another farming type

Due to cessation of farming

Commercial farm household 2.97 million

Business farm household 820,000


-390,000 (-48%)

-320,000

-70,000

-90,000 (-20%)


Semi-business farm household 950,000

Semi-business farm household 440,000

-510,000(-54%)

-420,000

-90,000

-50,000 (-12%)

Semi-business farm household

390,000

Side-business farm household 120,000

Side-business farm household

1,090,000

-110,000(-9%)

+320,000

-420,000

-130,000(-12%)


970,000

Noncommercial farm household 860,000

Noncommercial farm household

880,000

+20,000(+2%)

+630,000

-610,000

-120,000(-13%)

Noncommercial farm household

770,000*

Non-farm household with land 780,000

+430,000 (+55%)

Non-farm household with land 1,200,000

+20,000 (+2%)

Non-farm household with land 1,220,000

Commercial farm household 1.7 million (-43%) Source: MAFF, “Census of Agriculture and Forestry” and “Statistics on Movements in Agricultural Structure” Notes: 1) The numbers of increases and decreases in households shown above are those of transitions to another farming type and those of

cessations of farming in the periods between 1990 and 1995, 1995 and 2000, and 2000 and 2005 according to different types of farm households, which were calculated as follows:

Transitions to another farming type = (Transitions from another type – Transitions to another type) + (Those with an unknown location (transition “in”) – Those with an unknown location (transition “out”))

Cessations of farming = Newly started farm households – Farm households that ceased farming 2) A newly started farm household is a household that was not engaged in farming in the previous survey but was engaged in farming in

the following survey. 3) A farm household that ceased farming is a household that was engaged in farming in the previous survey but was no longer engaged

in the following survey. 4) A household with an unknown location is one that has moved to another, unknown location. 5) The figures marked with * are those of 2008. 3-20 Percentages of volumes of major agricultural items produced by

different types of farm households (2008)

Rice

Wheat and barleyPulses

Root cropsIndustrial crops

Vegetables

Fruits and nutsFlowers and ornamental plants

Dairy cattleFatting cattle

Pigs

Business farm household

Semi-business farm household


Source: MAFF, “Census of Agriculture and Forestry (2005)” and “2006 Statistics on Farm Management and Economy by Management Type

(Individual Management)” Notes: The graph above shows estimated percentages for business and side-business farm households, excluding those for noncommercial

farm households and non-farm households with land.

42

There are 71,000 paddy villages in Japan. In 40% of these villages, there are neither

business farm households nor community-based farm cooperatives that are mainly engaged in rice production, which are frequently observed in urban areas, hilly and mountainous areas, and areas located west of the Tokai region.

According to a questionnaire survey on the future prospects of regional agriculture (farmland use) conducted among regional agricultural councils, 86% of respondents said that there had been an “increase in uncultivated farmlands throughout or in part of the region,” while only 4% selected the response “not worried.” The most frequently selected response on how to secure successors in agriculture in each region was through the “establishment of a regional farmers’ association,” followed by “cultivation by agricultural cooperative-led and/or municipal government-led corporations” and “cultivation by businesses in and outside of the region.” These responses indicate that the importance of training and securing a variety of farmers for the sake of their future is understood in all regions.

3-21 Current state of business farm households and community-based farm

cooperatives in paddy villages

(Nationwide)Communities where there are business farm households but no community-based farm cooperatives whose biggest selling product is rice

Communities where there are both business farm households and community-based farm cooperatives whose biggest selling product is rice

Communities where there are community-based farm cooperatives but no business farm households whose biggest selling product is rice

Communities where there are neither business farm households nor community-based farm cooperatives whose biggest selling product is rice

13.5 (9,527 communities)




(By agricultural area type/agricultural area)

age in years

Percentage of communities where there are neither business farm households nor community- based farm cooperatives whose biggest selling product is rice

Average age of farmers (The scale on the right side)

Nat

ionw

ide

Urb

an a

rea

Flat

agr

icul

tura

l are

a

Hilly

agr

icul

tura

l are

a

Mou

ntai

nous

agric

ultu

ral a

rea

Hok

kaid

o

Toho

ku

Hok

urik

u

Kant

o-To

san

Toka

i

Kink

i

Chu

goku

Shi

kok u

Kyu

shu

Source: MAFF, “Census of Agriculture and Forestry (2005)” and “Survey on Community-based Farm Cooperatives (as of

February 1, 2009)” (including custom-ordered tabulation) Notes: 1) Tosan Region consists of Yamanashi and Nagano Prefectures. 2) The classification of agricultural area types used here is the one revised in June 2008. 3) The average ages of farmers are based on the population engaged in agriculture in the 2005 Census of Agriculture

and Forestry. 3-22 Future prospects of regional agriculture (farmland use)

(Increase in uncultiv ated f armlands

throughout or in part of the region) (Not worried because they hav e successors) (Worried despite the presence of a

community -based f arm cooperativ e)

Increase throughout the region Increase in part of the region

Source: MAFF, Results from the Questionnaire on Specified Agricultural Corporations/Specified Farming Communities

(conducted in June 2009) Notes: 1) This is a questionnaire survey conducted among regional agricultural councils throughout Japan. (999 effective

responses) 2) Single response questions on future prospects of regional agriculture (farmland use). Of all the distributed

questionnaires, 138 non-responses were excluded.


43

Family businesses account for a large portion of agricultural management entities in

Japan and are expected to continue playing a leading role in regional agriculture in the future. Even in the United States and EU countries where the scale of the farm business is greater than in Japan, family businesses also account for large percentages: 87% in the United States, 72% in France and 94% in Germany. It is important to develop measures and provide an environment that will help family farm businesses achieve further growth.

Community-based farm cooperatives have been promoted throughout Japan as a measure to encourage the entire region to be involved in maintaining and managing farmlands, particularly in regions where the population has been aging rapidly and more farm households have shifted to part-time farming. In 2010, there are 13,600 such organizations. While their management systems, purposes, and financial conditions vary from organization to organization, it is necessary for them to focus their activities on supporting farmers to improve their business performances.

The number of agricultural production legal persons reached 11,000 in 2009, showing a rising tendency.

3-23 Percentages of family farm businesses in the United States and the EU

(Unit: 10,000 business entities, %)

All

Individual/family-run

Corporation/cooperative, etc.

Average area of cultivated farmland undermanagement (ha)

United States France Germany Japan

Source: USDA, “2007 Census of Agriculture”; French Ministry for Agriculture, Food, Fisheries and Rural Affairs, “Enquêtes

Structure 2007”; German Federal Ministry of Consumer Protection, Food and Agriculture, “Ausgewählte Daten und Faken der Agrarwirtschaft 2010”; MAFF, “Census of Agriculture and Forestry (2005)”

Notes: 1) “Corporation/cooperative, etc.” includes joint and group business entities as developed forms of “one household, one corporation,” and family farms. One example of such an entity is the French GAEC (Le Groupement Agricole d’Exploitation en Commun), or Agricultural Groups for Joint Farming.

2) The figures in brackets are composition ratios. 3) The figures of the United States, France and Germany are those in 2007.

3-24 Changes in the number of community-based farm cooperatives by agricultural region 3-25 Changes in the number of

agricultural production legal persons Organization

Okinaw a

Kyushu

Shikoku

Chugoku

Kinki

Tokai Kanto/Tosan Hokuriku

Tohoku

Hokkaido

Source: MAFF. “Survey on Community-based Farm

Cooperatives” and “Survey on Local Employment Structure, etc.”

Notes: Tosan Region consists of Yamanashi and Nagano Prefectures.

Kabushiki gaisha (joint s tock company) (excl uding tokurei yugen gaisha or special limited liability company)

Corporation

Gomei, Goshi and Godo Gaisha (General partnership, li mited partnership, and limited liability company, respecti vel y) Tokurei yugen gaisha(Special limited liability company)

Noji kumiai hojin(Agricultural producers’ cooperati ve corporation)

Source: Surveyed by MAFF Notes: 1) All the figures above are those as of January 1. 2) Tokurei yugen gaisha (Special limited liability company) is

a company that had already been established as a yugen gaisha (limited liability company) before the enactment of the Companies Act in May 2005. The figures from 1985 to 2005 are those of yugen gaisha.

44

The Agricultural Land Act had required companies to establish an agricultural production

legal person in order to enter the farming business using farmland until December 2009, when the revised Agricultural Land Act took effect. The revised version of the law allows persons other than agricultural production legal persons to acquire the right to lease farmlands under certain conditions such as the following: the lease shall be void if the farmland is not used properly.

The number of corporations other than agricultural production legal persons that have entered or are considering entering into farming has been increasing. For example, in a survey among food-related companies, as of January 2010, 11% of the respondents had already entered into farming, 6% were considering or planning entry into farming, and 28% were interested but not considering entry. All these percentages were larger than those of three years before, showing an increase in interest in farming. In the future, it will be necessary to encourage a variety of people, including corporations other than agricultural production legal persons, to become involved in the farming business.

3-26 Review of the regulations for the use of farmlands under

the new farmland system

System before amendment

1. All leased farmlands must be effectively used.

2. One or more executives of the company must be engaged in farming full-time.

3. The contract must specify that, if the use of the leased farmland is discontinued, the contract must be terminated.

Rights concerning farmlands

Lease/Ownership (the same system

applied)

The requirements for theagricultural production legal person must be

met.

A special exception to the Agricultural Land Act

The “Special Zones for Structural Reform” system (a region-specific deregulation system) adopted in2003 enables corporations other than agricultural production legal persons to lease farmlands. This system was introduced throughout Japan in 2005,but imposed some limitations on available leasing method options and zones.

Points of review

The right to lease farmlands can be acquired under certain conditions even without fulfilling the requirements for the agricultural production legal persons.

As for ownership, while it is required to meet the requirements of the agricultural production legal persons, restrictions on financing investment to develop the farming business were eased.

Abolished

System after amendment

LeasingA variety of people can enter into farming.- Facilitating companies and NPOs to enter into

farming - Making it easier in rural communities to

establish community-based farm cooperatives including non-farm households as its members

- No restrictions on external financing

Ownership The requirements for the agricultural production legal person must be met.

Restrictions on external financing on agricultural production legal persons were eased with the aim of contributing to the development of the farming business in cooperation with non-farming entities. (Abolishment of the “1/10 or less” rule; less than 1/2 for agriculture-commerce-industry collaborative business entities)

Source: Prepared by MAFF 3-27 Intention of food-related companies to enter into farming

Already entered

Considering or planning Interested but not considering entry

Considered but gave upNot interested

Source: Japan Finance Corporation, Results from a Survey on the Entry into Farming by the Food Industry (survey conducted in

January 2010) Note: The survey was conducted by questionnaire to 6,823 food-related companies (manufacturers, wholesalers, retailers

and catering companies) in Japan (Collection rate 35.8%)


45

As the number of farm households has been decreasing, the population engaged in

agriculture has also shown a downward trend. This trend has also been seen in the United States and EU countries, but the characteristic unique to Japan is that this decrease is occurring rapidly and simultaneously with the aging of the population.

In Japan, the number of farmers mainly engaged in farming decreased by 30% from 1990 to 2007 to 2.02 million, while the average age of the core persons mainly engaged in farming rose by eight years to 65 years of age. In Germany, for example, the number of farmers (farm operators) declined by a little more than 40%, but the average age edged up by only one year to 49 years of age. In Italy, the number of farmers (farm operators) decreased by a little less than 40% but the average age rose by only three years to 60 years of age.

3-28 Changes in the number of farmers and the average age in

the United States and the EU

Japan

Italy

France

Germany

UK

U.S.

Number of farmers (10,000 persons) Average age (years)

Numbe r of increa se/d ecrea se

(Percentag e chang e)

Increase

(Reference)Number of farmers

per 10 ha of farmland

Source: Statistical Office of the European Communities “Eurostat”; USDA, “Census of Agriculture”; MAFF, “Census of

Agriculture and Forestry” and “Survey on Movement of Agricultural Structure” Notes: 1) Farmers in EU countries were those counted as “agricultural holders being a natural person,” those in the United

States were those counted as “principal operators,” and those in Japan were those counted as “core persons mainly engaged in farming.”

2) The average age in each of the EU countries above is the weighted average of the mean value in each age bracket. 3) The figure marked *1 is that of 2003, and the figure marked *2 is that of 1997. 4) The 1990 figure of Germany is that of the former West Germany. 5) Note that the increase of 50,000 farmers (farm operators) in the UK is due to a change in the definition for statistical

purposes in 2003. (The statistics in 2000 and earlier were made for farm operators with ≥6 ha, and those in 2003 and later for farm operators with ≥1.5 ha).

6) Farmland here is defined as the total of arable land and land for permanent crops, and does not include pasture and grazing land. The figures for Germany are for 2008, those for Japan, Italy, France and the U.S. are for 2007, and those for the UK are for 2004.

46

The number of new farmers in recent years has fluctuated between 60,000 to 80,000

per year. The 60,000 new farmers in 2008 included 51,000 sons and daughters from farm households and 7,000 people from non-farm households. In terms of age, there were 14,000 farmers aged 39 or younger among those newcomers.

More effort is needed in the future to increase the number of new farmers, not only from farm households but also from non-farm households. To achieve this, with individual circumstances taken into account, the following measures should be taken: the provision of information on how to start a farm business, the provision of individual consultations, the provision of more opportunities for new farmers to receive training to acquire skills and techniques, the provision of information on how to acquire farmlands, and the implementation of various support programs to reduce burdens to purchase machinery and facilities.

In recent years, there has been a trend toward an increase in the number of people who enter into farming through employment by an agricultural corporation. This way of entering into farming reduces the risk and burden upon starting a farm business and, therefore, is expected to become one of the main avenues for entering farming in the future. The “Farm Employment Project” was started in fiscal 2008 with the aim of promoting employment by agricultural corporations and securing and training farmers. A total of 3,597 persons (2,747 corporations in total) were employed by agricultural corporations through this project from fiscal 2008 to fiscal 2009.

3-29 Number of new farmers by household type, employment type, and age group

(2008)

Household type/Employment type ≤39 years old 40 to 59 ≥60 years old Total

(Unit: no. of people)

Sons/daughters from farm

households

Self-employed

Employed

Employed Those from non-farm

households

Newly graduated from school

Switched from another job




Sub-total


Sub-total

Newly entered in farming

Total

Source: MAFF, “Survey on Newcomers in Agriculture” 3-30 Major support programs for newcomers in agriculture

Thos

e fro

m n

on-fa

rm h

ouse

hold

s So

ns/d

augh

ters

from

farm

ho

useh

olds

Agric

ultu

ral c

aree

r tra

inin

g su

ch a

s on

-site

tra

inin

g

Gat

herin

g of

info

rmat

ion

on e

mpl

oym

ent i

n a g

ricul

ture

Those wishing to be employed

- Employment- oriented

- Job applicants

Those wishing to newly enter into farming

- Self- employment- oriented

- Clear farm management plan

Practical training programs provided by prefectural agricultural universities and other institutions

Promotion of employment in agriculture

[Employment in agricultural corporations, etc.]

[Matching support services] - Providing information on employment and individual

counseling - Organizing consultation meetings on job opportunities - Providing opportunities for working at an agricultural

corporation, etc.

[Acquisition of skills and knowhow] - OJT provided by agricultural corporations and other institutions to those wishing to

enter into farming - Supporting the improvement of training environments - Promoting the improvement of the employment

environment for women

Promoting job training programs provided by prefecturalagricultural universities and other institutions

[Acquisition of farming techniques]

[Procurement of machinery and facilities and acquisition of farmland]

[Preparation for those in another industry to enter into farming] - Providing technical training at a preparatory school for

farming

[Support for successors in agriculture] -- Offering support to farm households without any successors

through technical acquisition programs

[Practical support for self-employed farming] - Providing support to reduce initial investment in

machinery and facilities - Providing interest free loans for preparation for starting

farming and improvement in facilities (Support fund to start farming)

- Providing information on farmlands

Those wishing to be self-employed

- Taking over their parents’ business Development into independent self-employed farming

Starting an independent

business

Hum

an re

sour

ces

supp

ortin

g ag

ricul

tura

l cor

pora

tions

N

ew s

ucce

ssor

s su

ch a

s

certi

fied

farm

ers

Source: Prepared by MAFF


47

According to a survey in December 2009, farmers who “wish their children to take over

their farming operations” accounted for 70% of all respondents, mainly for the reason of maintaining farming operations and the farmland. Those who responded that they “do not wish” their children to take over their farming operations accounted for 30%. More than 80% of them said that the main reason for that was that “farming does not generate sufficient income.” This result indicates that it is important to take measures to improve their incomes in order to secure successors in family farming.

3-31 Reasons for “wishing or not wishing their children to take over their farming

operations” (multiple answers)

(Reasons for wishing their children to take over their far ming operati on (69.7%))

To maintain their own far mland

To maintain agriculture and farmlands in the region as aleader and/or a member of the community together with

other community members

Because of l onger holidays and shorter wor king hours thatare made possible dependi ng on their own efforts

Because of sufficient income

Because their child hopes to do so

Because ther e are no other jobs availabl e

Others

(Reasons for not wishi ng their children to take over their farming operation (29.8%))

Because farmi ng does not generate sufficient income

Because of l ess holidays and longer working hours

Because ther e are other jobs availabl e

Because their child does not hope to do so

Because it is possible to ask other farm households or acommunity-based farm cooper ati ve to take over their

farming operation

Because they do not consider it is necessary to maintai ntheir far mland

Others

Source: MAFF, “Survey on Awareness and Intentions concerning Food, Agriculture and Rural Areas” (Released in April 2010) Note: The survey was conducted by questionnaire to 2,500 farmers as monitors. (Collection rate 78.9%)

48

It is important to provide young farmers with agricultural education to help them acquire

sufficient knowledge on farm management and techniques. In fiscal 2008, 2,000 students who graduated from agriculture-related schools found a job in agriculture. Of the 2,000 students, nearly 600 were from an agriculture-related department of a university or junior college, while nearly 600 were from agricultural high schools, and nearly 900 from prefectural agricultural universities. It is important to provide more support programs to help more young people start farming. In addition, efforts should also be made to improve practical training programs and career consultation services.

There are also phased educational programs designed to provide various opportunities toward a career in agriculture. One such program is the Agricultural Internship Program, which allows students and those already working in a different field to have hands-on experience in agriculture. In fiscal 2008, there were 365 participants (Of these, 35 persons entered into farming).

3-32 Number of persons who entered into farming after completing agriculture-related

schools (FY2008)

66 universities/junior colleges(w ith agriculture-related departments)

Number of graduates: 22,586

333 agricultural high schoolsNumber of graduates: 27,738

42 prefecture agricultural universitiesNumber of graduates: 1,733

the National Farmers AcademyNumber of graduates: 19

3 private training and educational institutions

Number of graduates: 71

Those who entered into farming from

agriculture-related schools 2,107

(Reference) Those who entered

into farming immediately after graduating from

school 3,240

Source: Prepared by MAFF based on School Basic Survey (including custom-ordered tabulation results) of MEXT (Ministry of

Education, Culture, Sports, Science and Technology), Survey on Newcomers in Agriculture of MAFF, other surveys by MAFF, and a survey by the National Agricultural University Council

Notes: 1) Agriculture-related departments are departments offering courses in agriculture, forestry, animal sciences, fisheries, biological resources studies, food and environmental economics, etc.

2) “Universities and junior colleges” include masters’ and doctors’ programs; “prefecture agricultural universities” include research courses.

3) Some of the above graduates from agricultural high schools, universities and junior colleges entered into forestry-related careers.

4) As of March 2009, Akita, Tokyo, Toyama, Ishikawa and Fukui Prefectures did not have any prefectural agricultural universities.

5) The number of “those who entered into farming immediately after graduating school” is the number of those who entered into farming immediately after graduating school during fiscal 2008.

Participants in the Agricultural Internship Program (Chuo City, Yamanashi Prefecture)


49

The cultivated area, after reaching a peak in 1961, kept decreasing to 4,610,000 hectares in

2009. The a rea of abandoned cultivated land increased to 390,000 hectares in 2005. With regard to the intensive use of farmland according to management scale in each

prefecture, the net area of farmland transferred by farmers who owned farmland of less than two hectares (the <2 ha group), and the net area acquired by farmers with farmland of two or more hectares (the >2 ha group), both increased dramatically. The net intensive acquisition rate of farmland by those who own farmland of five or more hectares (the >5 ha group) has been increasing every year and, in 2007, it was 39.0%. In Hokkaido, the area of acquired land exceeds the area of transferred land for those who own farmland of 10 or more hectares (the >10 ha group). The net intensive acquisition rate of farmland by those who own farmland of 20 or more hectares (the >20 ha group) in Hokkaido in 2007 was 51.6%. These figures show that land acquisition by large-scale farmers has increased.

3-33 Change in the areas of cultivated land 3-34 Change in areas of abandoned

cultivated land 10,000 ha

Cultivated area 6.09 million ha at the peak (1961)

4.61 million ha (2009)

Cumulative total of areas of cultivated land that was expanded: 1.11 million ha (1960-2009)

C u mul ati ve to tal of a re a s of ruin e d l an d: 2 .6 million h a (1 96 0 - 2 00 9 )

Source: MAFF, “Statistics on Cultivated Land and Planted Area”

Note: Both areas of cultivated land expanded and ruined land exclude those converted from paddy field to upland field.

Ow

ned

by n

on-fa

rm

hous

ehol

ds

Ow

ned

by fa

rm

hous

ehol

ds

Source: MAFF, “Census of Agriculture and Forestry”

3-35 Intensive acquisition of farmland by different operating scales (2007)

(Prefectures) (Hokkaido)

Uncultivated <0.5 ha

Uncultivated <0.5 ha

≥5 ha ≥20 ha1,000 ha 1,000 ha

Net intensive acquisition rate Net area of

transferred land Area of acquired land

Area of acquired land

Area of transferred land

Area of transferred land

Net intensiveacquisition rate

(%)Net intensive

acquisition rate(1,000 ha)

Source: MAFF, “Analysis Survey on Information Gathering of Land Management” Notes: 1) The areas of acquired and transferred land above are the totals of the area of farmland where ownership was transferred with compensation (excluding

exchanged land) and the area of transferred land through the creation of a right to lease according to the Agricultural Land Act and the Agricultural Management Framework Reinforcement Act.

2) The net area of transferred land was calculated by subtracting the area of transferred land from the area of acquired land. 3) The net intensive acquisition rate is an indicator obtained as follows: Subtract the area of transferred land from the area of acquired land to obtain the net area

of farmland acquired by each group, which then should be divided by the area of farmland where ownership was transferred. When this indicator is positive in a group with a certain operating scale, it shows that farmland has been intensively acquired by farmers of this group.

4) The operating scale is the one before the transfer of ownership. 5) The “uncultivated” group includes the Farmland Possession Rationalization Corporation.

50

The utilization rate of cultivated land in Hokkaido has remained without much fluctuation

at around 100%, but the rate in other prefectures decreased significantly from 128% to 90%. The main reason for this decrease is the suspension of multiple cropping due to the increase in part-time farm households and earlier planting of paddy rice. Since Japan has very limited agricultural resources, effective use of farmland is important in part to improve the food self sufficiency ratio. More measures should be adopted in each region to address this issue.

Changes in regulations for farmland lease and conversion of farmland use were made along with the revision to the Agricultural Land Act and relevant laws and regulations. In addition, some projects to promote the intensive use of farmland have also been initiated. More efforts should be made to secure farmland and promote the effective use of farmland.

3-36 Changes in total planted areas and utilization rates of cultivated land in

Hokkaido and other prefectures (Utilization rate of cultivated land)

(Total planted areas)

Hokkaido

Prefectures 10,000 ha

Prefectures

Hokkaido

Source: MAFF, “Statistics on Cultivated Land and Planted Area” Notes: The utilization rate of cultivated land is the ratio of the total planted area to the total cultivated area. 3-37 Changes in utilization rates of cultivated land (the total of paddy and

upland fields) by prefecture (1965) (2008)

Three crops in two years

Two crops per year

Utilization rate of cultivated land

>120% 110 – 120% 100 - 110% 90 - 100% 80 - 90% <80%

Source: Prepared by MAFF based on its Statistics on Cultivated Land and Planted Area and other surveys Notes: 1) The multiple crop area boundaries were determined based on whether or not wheat and barley were planted as a succeeding crop in

rice paddies in 2007. “Three crops in two years” refers to the rice-wheat and barley-soybean rotations. 2) Both in the upper and lower parts of the boundaries, there are some regions where multiple cropping is possible or impossible due to

weather and other reasons. 3) The figures for 1965 in Okinawa Prefecture were estimates based on data in 1973 because of the absence of figures for that year.


51

Improvement in infrastructure for agricultural production, including improvement of

paddy fields and irrigation for upland fields, contribute to improving the utilization rate of cultivated land, preventing the abandonment of cultivated land, increasing the production of wheat, barley, soybean and other crops, and improving the efficiency of farm management. However, the improvement rate of such infrastructure varies from prefecture to prefecture.

Irrigation facilities such as dams and water channels are essential to support the use of irrigation water in agricultural production. In Japan, there are 7,000 basic irrigation facilities such as dams, and a total of 400,000 km of water channels for agricultural use, of which the length of key water channels is 49,000 km.

However, many of these basic facilities have already reached the end of their useful service lives and are aging. To address this issue, the “stock management” of agricultural irrigation facilities has been implemented. Under stock management projects, the diagnosis of the facility function is made, based on which effective and efficient measures to improve the facility are chosen, which may include repair and replacement of parts of the facility.

3-39 Basic irrigation facilities that have already reached the end of their useful

service lives 3-38 Percentages of the areas of rezoned paddy fields with good

drainage and the areas planted with soybeans (by prefecture in 2008)

Percentage of the areas of the rezoned fields (about > 30 a) with good drainage

Per

cent

age

of th

e ar

eas

plan

ted

with

soy

bean

s

Source: MAFF, “Statistics on Cultivated Land and Planted Area”; The

percentages of the areas of rezoned fields with good drainage were surveyed by MAFF.

Notes: 1) The area of paddy fields is the figure as of July 15, 2008; the area of fields planted with soybeans is the figure for the production in 2008; and the areas of the rezoned fields (about >30 a) with good drainage is the figure as of March 31, 2008.

2) The paddy field with good drainage here must meet both of the following conditions: the “4-hour rainfall, 4-hour drainage” condition (the greatest amount of rainfall in 4 hours must be drained in 4 hours), and a groundwater level deeper than 70 cm.

(Agricultural irrigation channels)

(Agricultural drainage pump stations)

stations

Source: MAFF, “Survey on Irrigation Facilities” and “Basic Survey on Agricultural Infrastructure”

Notes: The useful service life for agricultural irrigation channels is generally forty years, while that for agricultural drainage pump stations is generally 20 years.

3-40 Preservation of functions of agricultural irrigation facilities by the stock

management system (schematic)

Current Future Simultaneous renewal of all facilities in the region

With the standard useful service life in mind, all facilities in the region are simultaneously renewed when an increase in damaged parts is observed.

Simultaneous renewal of all facilities in the region Change to the stock management

Based on the diagnosis of the facility function and a preventive maintenance plan, appropriate measures according to the level of deterioration will be taken.

Dam

Intake weir

Irrigation channel

: Parts to be renewed

Demolition of an existing irrigation channel

Construction of an irrigation channel

RepairRepair

Dam

Intake weir

Irrigation channel

Reinforce-ment

Use to be continued

Partial renewal

: Parts to be renewed : To be used continuously

: To be diagnosed: To be continuously used after recovering the function by simple repairs: The period before renewal will be extended by reinforcement work


52

Loans funded by various institutional finances are available with the characteristics

unique to agriculture taken into account, such as unstable production affected by natural conditions. As the entire agricultural production has been decreasing, the scale of loans for farm managements has also shown a decreasing tendency in general. However, the policy has been switched “from subsidies to finances” and therefore, farm financing programs will become increasingly important.

The total outstanding balance of agricultural business loans was ¥2.2 trillion at the end of fiscal 2008, of which 70% or ¥1.5 trillion was that of agricultural institutional funds. With regard to the Super L Fund, in particular, the loans increased significantly from fiscal 2007 to fiscal 2009 due to the provision of virtual interest-free loans during this period.

In the future, measures to enable a variety of motivated farmers to procure funds will be needed to meet the demands unique to individual farmers.

3-41 Changes in loans from funds such as the Super L Fund

¥100 million Agricultural Management Framework Reinforcement Fund (Super L Fund)

Agricultural Modernization Fund(For designated farmers)

Source: Prepared by MAFF based on its survey and other surveys conducted by Japan Finance Corporation, The Okinawa

Development Finance Corporation, and prefectures 3-42 Outstanding balance of agricultural business loans and breakdown of lenders

(end of March 2009)

via agricultural cooperatives

81.0%

Agricultural institutional funds

71.7%

¥2.2 trillion in total

Agricultural cooperatives

systems 58.9% Japan Finance

Corporation39.2%

Of these, the Modernization

Fund, etc. 22.0% Of these, sublease

loans from Japan Finance Corporation

8.6%

Of these, those trusted to agricultural cooperatives systems

22.1%

Of these, those trusted to banks

3.2%

Of these, direct loans

13.9%

Municipal corporations 1.7%

Ordinary financial institutions 0.2%

Source: Prepared by MAFF based on of the 2008 Annual Statistics of Business of Japan Finance Corporation, the 2009

Financial Statistics of Agriculture, Forestry and Fisheries of the Norinchukin Bank, and other data Notes: 1) The loans by Japan Finance Corporation exclude those for the improvement of agricultural infrastructure in land

improvement districts. 2) Agricultural institutional funds from agricultural cooperatives systems include sublease loans of agricultural

improvement funds and support funds for those entering into agriculture. 3) The loans outstanding of ordinary financial institutions are the total of loans from the agricultural modernization fund

alone.


53

Action to increase agricultural income

With agricultural income being on the decline, it is important for farmers and related

organizations to proactively take independent action to increase their incomes. To this end, it is necessary to take action to raise sale prices and expand sales volume (i.e., take action to integrate production, processing, and sales; open directly-operated stores for agricultural products, develop brands, and strengthen the sales capabilities of agricultural areas; cope with demand from processors and other businesses; and boost exports) and reduce costs (i.e. the production cost of agricultural machinery and agricultural chemicals and costs involved in distribution).

While they obviously produce agricultural products, less than 20 percent of all farmers are taking action to process their own products or sell them directly. In addition, just 50 percent of agricultural corporations operate businesses relating to agricultural production, though a further 20 percent are planning to do so. Going forward, it will be important to take action that reflects conditions for different regions and among farmers.

Action to develop agriculture-related businesses will contribute to improvements in business efficiency as a whole by generating more added value from the same amount of labor input and other factors of production such as land.

3-43 Action to develop businesses relating to agricultural production by

commercial farmers

Processing of agricultural products

Commercial farmers that operate businesses relating to agricultural production: 17.6% Commercial farmers that do not operate businesses relating to agricultural production: 82.4%

Direct sales to stores or

consumers

Leasing of farms, making farms available for farming lessons/

practice, etc.

Operating farms for tourists

Offering lodgings in farmhouses

Operating restaurants

Other

Source: MAFF, “Agriculture and Forestry Census,” 2005 3-44 Business efficiency indicator for farmers taking action to operate businesses

relating to agricultural production and those not taking action

Indicator value (Rice farmers) (Fruit farmers)

Farmers not taking action

Farmers taking action 95% confidence interval

around the mean

Mean

Source: MAFF compiled from statistics from the Statistical Survey on Agriculture Management (custom-ordered tabulation) Notes: 1. In addition to producing agricultural products, “farmers taking action” also operate businesses relating to processing and sales.

“Farmers not taking action,” meanwhile, only produce agricultural products. 2. The business efficiency indicator rates, using the envelope method, the relative efficiency of farmers in comparison to the most efficient

farmer in the category, who is assigned the value 1.0. 3. The mean is the simple mean of the business efficiency of each farmer in the sample. The 95% confidence interval around the mean

shows the range within which the mean of the population is estimated to lie with a 95-percent probability. It is therefore an indicator of the statistical reliability of the sample mean.

54

There are more than 13,000 directly-operated stores for agricultural products nationwide

(as of 2005), and because they allow producers to sell distinctive agricultural products, sell products in small quantities, and so on, they offer a means for enabling producers to increase their income from agriculture. The Policy Research Institute, Ministry of Agriculture, Forestry and Fisheries estimates that of the total sales of 2.5 billion yen from a large directly-operated store for agricultural products , the total economic benefit is 0.94 billion yen, of which 0.37 billion yen is increased income for producers.

To make directly-operated stores for agricultural products even more effective at increasing the incomes of producers going forward, it will be necessary to strengthen their functions to make them better meet the needs of users, to locate new stores efficiently, and so on.

It will also be important to raise added value by turning distinctive agricultural products that have met the needs of consumers in each region into brands, and to take action to maintain and increase sales prices. Regional brands are expected to offer numerous benefits, such as raising the profile of the region and the pride of its inhabitants, increasing the revenues of producers, and creating jobs.

3-45 Economic benefits of directly-operated stores for agricultural products and others

Million yen

Urban regions Flat agricultural regions Semi-mountainous regions

Increase in employment income

Increase in consumers’ disposable income

Increase in incomes for producers

Source: PRIMAFF, “An Economic Analysis of Farmers Markets,” published October 2009 Notes: 1. Increase in incomes for producers = revenues from directly-operated stores for agricultural products –revenues in

case of shipments to wholesale markets Increase in consumers’ disposable income = market value – sales at directly-operated stores for agricultural products Increase in employment income = increase in salaries of employees of directly-operated stores for agricultural

products 2. A-L are the directly-operated stores for agricultural products surveyed. 3-46 Expected benefits from regional brands

Raising the profile of the region and the pride of its inhabitants

Increasing the revenues of producers and creating jobs

Promoting and establishing the trademark concerned among consumers

Transmitting understanding of the region’s culture (i.e. food and traditions)

Uniting and revitalizing the community

Facilitating related industries and increasing the number of jobs in them

Stimulating the discovery of new local resources

Protecting local products concerned through acquiring the trademarkright (i.e. preventing piracy)Generating new industries

Attracting more tourists

Promoting exports

Expected Don’t know

Not really expected Not expected

No answer given

Somewhat expected

Source: Council on Regional Branding for Food and the Agriculture, Forestry and Fisheries Industries, “Questionnaire Survey on Regional Branding of Agricultural Products,” published November 2009 Notes: 1. The survey covered all the 757 agricultural cooperatives that existed as of February 1, 2009. 30.6 percent of them

responded. 2. Regional branding involves the production of specific products or the provision of services that relate in some way to

the region (i.e. to the nature, history, atmosphere, culture, society, etc. of the region). The producers in the region come together and market their products and services under the same brand.


55

As food becomes externalized, the food-manufacturing and restaurant industries are,

with respect to vegetables for processing and commercial use, placing more emphasis on being able to secure stable supplies at stable prices over the medium to long term. It is therefore essential to take measures to such as establishing a distribution structure to ensure stable supplies (e.g. a year-round supply structure based on nationwide, relay shipping). This can be achieved by training personnel within the region, securing the services of intermediaries, and so on.

Increasing exports of agricultural products and processed food products will help farmers boost their incomes and develop their businesses by, for example, increasing sales and production through the expansion of sales channels. It will therefore continue to be necessary to take strategic action to increase exports that reflects the circumstances in the countries/regions to which the products are exported. To promote exporting, it will also be necessary to deal with the problem of infringement of Japanese intellectual property rights overseas, especially in East Asia.

3-47 Wishes of the food-manufacturing and restaurant industries with

respect to vegetables for processing and commercial use

The ability to secure stable supplies over the medium to long term

The ability to procure vegetables at stable prices over the medium to long term

Stable supplies all year round

The supply of vegetables that meet quality standards and specifications (e.g. for variety,size, appearance, and water content) for processing and commercial use

Narrower price differentials between vegetables produced domestically and overseas

The presence of advisers on the agricultural side to advise on cultivation and shipping ofvegetables for processing and commercial use

Regularly-held study groups, seminars, etc. on cultivation and shipping of products forprocessing and commercial use

Regularly-held study groups, seminars, etc. The presence of intermediaries (distributors etc.)who are willing to give introductory information about a place of production

The domestic supply of vegetables that have been processed to a primary level within Japan(e.g. peeled, de-stemmed, or chopped)

Emphasize Somewhat emphasize

Food-processing industry Restaurant industry

Source: MAFF, “Results of a Survey of Awareness and Intentions Concerning the Handling of Vegetables for Processing and

Commercial Use,” published August 2008 Note: These results were obtained from a questionnaire survey targeting 503 distributors or processors. They belong to either

the food-manufacturing or restaurant industry and use vegetables as ingredients. 86.5 percent of them responded. 3-48 Value of exports of agricultural, forestry, and fishery products to major countries

and regions (2009) EU (27) (24.21 billion yen)

Pearls (natural and cultured) 1.81 bil l ion yenSeeds etc. for agriculture 1.75 bil l ion yenScallops (fresh, refrigerated, frozen, salted, and dried) 1.06 bil l ion yenGreen tea 0.59 bil l ion yenRice 0.04 bil l ion yenCut flowers (fresh) 0.02 bil l ion yen

China (46.53 billion yen)

Salmon and trout (f resh, refrigerated, or frozen) 11.32 bill ion yen Alaska pollack (fresh, refrigerated, or frozen) 3.31 bill ion yen Powdered milk 1.9 bill ion yen Lumber 0.49 bill ion yen Apples 0.09 bill ion yen Rice 0.01 bill ion yen

Taiwan (58.53 billion yen) Apples 4.69 billion yenChinese yams etc. 1.33 billion yenPeaches 0.3 billion yenGrapes 0.29 billion yenJapanese pear 0.28 billion yenRice 0.12 billion yen

South Korea (45.85 billion yen)

Alaska pollack ( fresh, refrigerated, or frozen) 5.51 bill ion yenSea bream (live) 2.42 bill ion yenLumber 0.17 bill ion yenGreen tea 0.06 bill ion yenHen eggs 0.03 bill ion yen

U.S. (73.06 billion yen)

Yellowtail (fresh, refrigerated, or f rozen) 5.11 billion yenPearls (natural and cult ured) 2.86 billion yenSesame oil 2.26 billion yenGreen tea 1.63 billion yenBeef (including scraps) 0.57 billion yenChinese yams etc. 0.41 billion yenRice 0.03 billion yen

Hong Kong (99.10 billion yen)

Pearls (natural and cult ured) 10.19 bil lion yenPowdered milk 10.01 bil lion yenDried sea cucumber (prepared for consumption) 9.96 bil lion yenWheat flour 2.81 bil lion yenBeef (including scraps) 0.66 bil lion yenApples 0.38 bil lion yen

Australia (5.46 billion yen)

Scallops ( fresh, refr igerated, frozen, salted, and dried) 0.6 billion yenPear ls (natural and cultured) 0.12 billion yenGreen tea 0.05 billion yenSesame oil 0.03 billion yen

Source: Ministry of Finance, “Trade Statistics” Notes: 1. Totals for each country/region represent total exports of all agricultural, forestry, and fishery products. 2. Products in red are agricultural products (used for food).

56

To reduce agricultural machinery costs, it will be essential to expand the size of farms,

promote the shared use of agricultural equipment, put farm work in the hands of specialist contractors, promote the more general application of machines, and so on.

To reduce fertilizer costs, it will be necessary to use soil diagnosis to apply fertilizer optimally and locally. This will enable the amount of chemical fertilizer used to be curtailed. And to reduce agricultural chemical costs, it will also be essential to curtail their use through such methods as lifecycle-based pest control and integrated pest management (IPM), as well as to promote the purchase of chemicals in bulk packages, agricultural generic chemicals1, and so on, as these are cheaper.

To reduce distribution costs, it will be necessary to promote the use of cheap brown cardboard boxes, container shipping, joint shipping based on partnerships among different producing areas, and so on among farmers in the producing areas. And at the distribution stage, for example, distributers could be encouraged to pass the products along using the same container. It will be necessary to promote cooperation among organizations at every point along the food chain, from production to consumption.

3-49 Materials and agricultural equipment costs for rice farms of different sizes

Yen/10a

0.5-1.0ha farms

Agricultural equipment costs

Materials costs

Agricultural equipment costs for 10-15ha farms as a percentage of such costs for 0.5-1.0ha farms:

1997: 72.7% 2007: 46.3%

Source: MAFF, “Production Costs of Rice, Wheat and Barley” Note: The 2007 figures for agricultural machinery costs represent the totals of vehicle costs and agricultural equipment costs.

Until the 2003 harvest, vehicle costs and agricultural equipment costs were both deemed to be agricultural equipment costs in surveys and publications. Since the 2004 harvest, however, they have been treated separately.

3-50 Example of the use of the optimal application method to reduce fertilizer costs

Conduct soil diagnosis on

each plot

Determine the amount of fertilizer to be applied to each plot, taking into account the

results of the soil diagnosis and the crops to be planted next

season

Yield for each crop: 10% higher Natural fertilizer costs per 10a: 10% lower (Each figure is relative to the mean for the region.)

Profile of the farmer:

Location: Kiyosato-cho, Hokkaido No. of agricultural workers: 2 Land area of the farm: 44ha (of which 8ha is rented) Crops grown: barley, sugar beet, potatoes, and red beans

(in rotation)

Details and benefits of the initiative: The optimal application of fertilizer based on soil diagnosis eliminated the wasteful use of fertilizer and reduced fertilizer costs.

Fertilizer costs are now 9,000 yen per 10a compared with the mean of 10,000 yen for the region.

The soil is improved through the application of organic material. Because there is no composting center nearby, the farmer purchases manure from local dairy farmers.

Soil diagnosis in progress

Footnote: 1. Agricultural generic chemicals are agricultural chemicals with standardized ingredients that is produced by various manufacturers once the patent held by the

manufacturer that originally developed it has expired (after 20-25 years). Such agricultural chemicals are registered with the Minister for Agriculture, Forestry, and Fisheries after data from a battery of tests on toxicity etc. has been submitted and their safety has been confirmed.


57

The proportion of farmers calling on agricultural cooperatives to strengthen their sales

capabilities and reduce materials prices has increased dramatically. Agricultural cooperatives supply a particularly large proportion of materials for

agricultural production, and with international fertilizer prices expected to stay high in the future compared with historical levels, more action will be needed to ensure stable supplies of chemical fertilizers and agricultural chemicals and to reduce supply costs.

3-51 What farmers expect of agricultural cooperatives (multiple answers)

Stronger sales capabilities

Lower fees

Fact-finding on consumer needs and the provision of

information to farmers

Stronger ties with agricultural advisors

Lower prices

Stronger ties with agricultural advisors

Wider range of products

Better service (shipping, open at night and on

holidays, etc.)

(Wishes concerning the collection and sale of agricultural and dairy products) (Wishes concerning the supply of materials for agricultural production)

Source: MAFF, “Results of a Survey of Awareness and Intentions Concerning Businesses Operated by Agricultural Cooperatives,” published

March 2009, and “Results of a Survey of Awareness and Intentions Concerning Materials Etc. for Agricultural Production,” published November 2003

Notes: 1. The 2003 survey was a questionnaire survey covering 3,000 households selected from the commercial farmers recorded in the 2000 Census of Agriculture and Forestry according to the proportion comprising the highest band for total sales of agricultural products. 59.8 percent of them responded.

2. The 2008 survey was a questionnaire survey covering 2,500 farmers. 84.1 percent of them responded. 3. “Better service (shipping, open at night and on holidays, etc.)” was the replacement of the term, “More convenience” in the 2003 survey. 3-52 Proportion of chemical fertilizers and agricultural chemicals supplied by

agricultural cooperatives (Fiscal 2005) (Chemical fertilizers) (Agricultural chemicals)

Other Other

Other

Other

Other

Other

General agricultural cooperatives80%

Economic federations (keizairen)65%

Zen-Noh (national federation of agricultural cooperatives)

60%

Zen-Noh (national federation of

agricultural cooperatives)

34% Economic federations (keizairen)

40% General agricultural

cooperatives 61%

Source: MAFF Notes: 1. The pie charts show the proportion supplied by agricultural cooperatives at each stage of the distribution chain. The outer ring shows

this proportion at the direct-from-the-producer (national) stage, the middle ring shows it at the wholesale (prefectural) stage, and the inner ring shows it at the retail stage.

Zen-Noh is the national federation of agricultural cooperatives, and operates businesses engaged in the purchase of materials for agricultural production such as fertilizers and agricultural chemicals and the sale of agricultural products. Economic federations (Keizairen)are prefectural federations of agricultural cooperatives that operate economic businesses.

2. General agricultural cooperatives are agricultural cooperatives that operate various businesses such as credit businesses that take deposits and make loans, businesses that sell agricultural products and jointly procure fertilizers and agricultural machinery, and cooperative insurance businesses. “Other” includes specialist agricultural cooperatives, which are distinct from general agricultural cooperatives.

58

Action to expand the participation of women in society

The number of female farmers starting businesses is increasing each year, and in 2007 they launched 9,533 businesses. Most of these businesses involve food processing or the sale of agricultural products, food products, and so on.

However, while female farmers account for 53 percent of the agricultural working population (as of 2009), their participation in business and society remains at a low level. A number of benefits have been cited from expanding the participation of women in society, by encouraging agricultural cooperatives to appoint female executives, for example. As a result, awareness of the importance of joint participation by men and women will increase and opinions concerning entrepreneurship or opinions from hitherto unheard perspectives will surface.

To expand the participation of women in society and business, it is essential to create an environment that is conducive to such participation. For example, they need to be given opportunities to acquire knowledge of agricultural technology and business management, their mindset needs to be changed, and burdens such as housework, childrearing, and care for elderly relatives need to be eased.

3-53 Change in No. of businesses launched by women in rural areas 3-54 Change in the rate of women to the

population engaged mainly in farming No. of businesses

Sales of 3 million yen or more

Gro

up b

usin

ess

Indi

vidu

al b

usin

ess

Source: MAFF, “Survey on Businesses Started by Agricultural

Women”

Population engaged mainly in farming

Agricultural committee members

Agricultural cooperative executives

Representatives of community-based farm cooperatives

2009 (10,000 people) 2008 (people) 2007 (people) 2009 (people)Total of men and women

Women

Source: MAFF, “Survey on Movement of Agricultural Structure,” “Statistical Tables on General Agricultural Cooperatives,” “Survey of the Activities of Community-Based Farm Cooperatives ,” “Survey of Agricultural Committees and Prefectural Agricultural Councils”

Notes: 1. Figures for the population engaged mainly in farming and representatives of community-based farm cooperatives are estimates.

2. Community-based farm cooperatives are organizations participating in a government program aimed at stabilizing income from rice and vegetable cultivation.

3-55 What is required to enable women to achieve a balance between work,

community activities, and household activities (multiple answers)

Men Women

Coop

erati

on fr

om

husb

and

and

fami

ly me

mber

s

Brea

kdow

n in t

he ri

gid

perc

eptio

n tha

t ho

usew

ork,

child

rear

ing, e

tc. is

wo

men’s

wor

k Ef

fecti

ve u

se of

outs

ide

servi

ces s

uch a

s da

ycar

e for

child

ren

and

nursi

ng ca

re fo

r eld

erly

relat

ives

Havin

g the

view

s of

wome

n tak

en in

to

acco

unt in

the r

egion

al ag

ricult

ural

mana

geme

nt

Secu

ring

suffic

ient

farm

workf

orce

thro

ugh

emplo

ymen

t

Pers

onne

l ma

nage

ment

that

resp

ects

moth

erho

od

Conc

lusion

of fa

mily

mana

geme

nt

agre

emen

t

Cours

es on

busin

ess

mana

geme

nt etc

. that

can

be ta

ken a

t hom

e and

ou

tside

cours

es of

fering

crè

che s

ervice

s

Nothi

ng in

par

ticula

r re

quire

d

Othe

r

Did n

ot an

swer

Source: MAFF, “Survey of Intension Concerning Joint Participation by Men and Women in Agriculture,” published March 2009 Note: These results were obtained from a questionnaire survey targeting 2,000 female farmers and their husbands (2,000

male farmers). 51.7 percent of the women and 50.9 percent of the men responded.


59

The Activities of Elderly Farmers

With farmers getting older, the proportion of elderly farmers saying that they usually play the main role in performing farm work or that they are the only person performing such work is 74 percent for those between 65 and 69 years old and 66 percent for those between 70 and 74 respectively. Farmers expect elderly people to perform such roles as transmitting local culture and tradition to younger generations and mediating when there are problems in the community. Going forward, it will therefore be essential to establish an environment in which elderly farmers can play active roles.

Although in 2008 there were fewer than 400 fatal accidents involving farm work, 79 percent of such accidents took the lives of elderly people aged 65 or older. To prevent fatal accidents such as falling or toppling agricultural machinery, which is the biggest cause among them, a campaign to confirm safety in farm work was conducted , enlisting municipalities nationwide, agricultural-machinery dealerships, and so on.

3-56 Usual involvement by elderly people in farm work

65-69 years

70-74 years

75 years or older

Perform it on their own Play the main role Just assist their son, his wife, or their spouse Not involved Other

Did not answer

Source: MAFF, “Survey of Intensions Concerning Participation in Farming and/or Activities for their Rural Community by Elderly People,”

published March 2009 Notes: 1. These results were obtained from a questionnaire survey targeting 2,000 farmers with their own farms who were 62 years or older at

the time of the 2005 Agriculture and Forestry Census. 62.1 percent of them responded. 2. Three years were added to the ages recorded in the 2005 Agriculture and Forestry Census when the survey was conducted in 2008,

and the age bands refer to these ages.

3-57 Activities that farmers hope elderly

people will perform to aid in the revitalization of their regions (multiple

answers)

3-58 Change in No. of fatal accidents occurring during the performance of

farm work and the percentage of them involving elderly people

Tran

smit l

ocal

cultu

re a

nd tr

aditio

nsu

ch a

s tra

dition

al ar

ts, fe

stiva

ls, et

c. to

youn

ger g

ener

ation

s

Media

ting w

hen t

here

are

pro

blems

inthe

comm

unity

Beau

tify th

e env

ironm

ent b

y usin

g lan

dtha

t is n

o lon

ger c

ultiva

ted t

o gro

watt

racti

ve-lo

oking

plan

ts

Prov

ide di

etary

educ

ation

to ch

ildre

n by

using

trad

itiona

l loca

l cuis

ine

Proc

ess a

nd se

ll dire

ctly a

gricu

ltura

lpr

oduc

ts pr

oduc

ed lo

cally

Prov

ide a

gricu

ltura

l pro

ducts

prod

uced

locall

y for

use

in sc

hool

lunch

es

Teac

h agr

icultu

ral te

chniq

ues i

nall

otmen

t gar

dens

, etc.

Inter

act w

ith n

on-fa

rmer

s and

cons

umer

s both

insid

e and

out

side t

here

gion t

hrou

gh e

vent

s

Prov

ide m

eals

using

agr

icultu

ral

prod

ucts

prod

uced

loca

lly to

elde

rl ype

ople

etc.

who l

ive a

lone

Source: MAFF, “Survey of Awareness and Intentions Concerning

Food Products, Agriculture, and Rural Areas,” published April 2010

Note: These results were obtained from a questionnaire survey targeting 2,500 farmers. 78.9 percent of them responded.

Accidents

Accidents involving work with agricultural machinery or facilitiesAccidents involving work without agricultural machinery or facilities

Percentage of people 60 years or older (right axis)

Percentage people 65 years or older (right axis)

Source: MAFF, “Report on the Results of a Survey on Accidents

Involving Farm Work”

60

Actions to support sustainable agricultural production

The whole world concerns global warming impacts negatively on agriculture, such as higher temperatures, draughts, floods.

In 2008 Japan’s greenhouse-gas (GHG) emissions stood at 1.282 billion tons of CO2, a 1.6% increase compared to the level in 1990. However, the agriculture, forestry, and fisheries sectors (i.e. the agriculture, forestry, and fisheries and the food manufacturing industry) have reduced their emissions by 26.3 percent since 1990 by introducing energy-efficient equipment, reducing the use of fuel due to high prices, and so on.

The Government of Japan strongly promotes new measures, such as emissions trading and carbon footprint labeling schemes which aims to visualized CO2 emissions, to mitigate global warming in the agriculture, forestry, and fisheries sectors. An initiative, called the “Biomass Town” concept, is also underway to make use of the 320 million tons of biomass produced each year in the form of excretions from livestock, straw from rice plants, and lumber off cuts from logging. Under these initiatives, biomass will be recycled into feed, fertilizers, and biofuel.

3-59 GHG emissions from agriculture, forestry, and fisheries, and medium-term

targets reducing these emissions in Japan

Greenhouse-gas emissions Agriculture, forestry, and fisheries and food manufacturing industry

Agriculture, forestry, and fisheries

Carbon dioxide

Methane

Nitrogen monoxide Food (manufacturing) industry

Base year under the Kyoto Protocol: 1990

FY 2008 (change since base year)

Commitment period under the Kyoto Protocol: 2008-2012 (change since base year)

Medium-term target year: 2020

(change since base year)

(Unit: million tons of CO2)

Source: Prepared by MAFF using the Ministry of Environment’s “Fiscal 2008 Greenhouse-Gas Emissions (Confirmed Figures)” 3-60 Carbon Footprint Label 3-61 Districts designated as “Biomass Towns”

The carbon footprint labeling means labeling products and services with the CO2 equivalent of the total volume of greenhouse gases emitted from the entire product lifecycle, from the procurement of raw materials to manufacture, transportation, consumption, and disposal/ recycling.


Districts designated as

“Biomass Towns” March 31, 2010: 268 districts

Fiscal 2010 target: 300 districts

Source: Prepared by the MAFF


61

Agriculture places a burden on the environment through its use of fertilizers, agricultural

chemicals, and through its management of water and soil. The number of “eco farmers,” who try to farm in an environmentally-friendly way, is on the increase, with 192,000 at the end of September 2009. Going forward, it will be important to promote the use of soil diagnosis technology, the improvement of soil condition using compost, and the reduction in the use of chemical fertilizers and synthetic agricultural chemicals.

Although organic farming is becoming more widespread year by year, organic farms account for only 0.2% of the total land under cultivation (as of April 2009), which is a low figure compared with other countries. From now on, it will be important to provide support for the development of techniques for organic cultivation, the provision of education, and the establishment of sales channels.

Agriculture, forestry and fisheries are activities that take advantage of cyclical functions involving nature’s diverse range of organisms. In recent years, however, the stagnation in these activities has resulted in declines in the populations of species that were once widespread. Therefore, based on initiatives such as the MAFF’s Strategy for Biodiversity Conservation, the following actions are needed to be promoted; environmentally-friendly agriculture, farm land consolidation for biodiversity, development of biodiversity indicators, and implement of “living creature mark” programs in various regions.

In October 2010 the 10th Conference of the Parties to the Convention on Biological Diversity (COP 10) will be held in Nagoya, Aichi Prefecture, providing an opportunity to inform people in both Japan and overseas that Japan’s agriculture, forestry and fisheries are contributing to the conservation of biodiversity.

3-62 Change in No. of certified eco farmers 3-63 Organic produce certified under the

JAS organic program 10,000 farmers

Other

Fiscal 2002 (As of September 30)

Fruits

Vegetables

Rice

Source: MAFF

10,000 t

Other

FruitsRice

Vegetables

Fiscal2001

Source: MAFF

3-64 Outline of the MAFF’s Strategy for Biodiversity Conservation

Promotion of the MAFF’s Strategy for Biodiversity Conservation (formulated in July 2007)

Conservation of countryside and Satochi-Satoyama areas Conservation of forests

Promotion of environmentally-friendly agriculture such as

organic farming Promotion of farm land

consolidation for biodiversity Promotion of measures

addressing damage caused by wildlife, such as clearing of

bushes around agricultural land

Proper management and conservation of the forests

Support to fishermen-led activities to conserve

underwater plant beds and tidelands

Effective promotion of related policies and measures

Conservation of underwater plant beds and tideland Development of

biodiversity indicators for quantitative measurement of the relationship between biodiversity and agriculture, forestry and fisheries

Promote the expansion of agriculture that will improve biodiversity Expand efforts to perform paddy farming to allow food production and biodiversity conservation to coexist by monitoring biodiversity, gathering case-study data on conditions of farming, and so on

Promote agriculture, forestry and fisheries that places more emphasis on conserving biodiversity Inform domestic & foreign people on the occasion of hosting the COP10 that Japan’s agriculture, forestry and fisheries are contributing to the conservation of biodiversity.

Source: MAFF

62

Research and technology development

To ensure a stable supply of food and maintain the vitality of farming villages, villages in

mountainous areas, and fishing villages, it is important to make the best use of the various resources and underlying potential of these villages. Technology development is playing an increasingly critical role in this regard.

The national government, organizations affiliated with it, universities, private-sector companies, and so on are working together to conduct research that can contribute to increasing Japan’s food self-sufficiency ratio, for example by breeding new rice varieties that are suitable for rice flour and feed. They are also employing genome information to develop innovative new varieties and using gene recombination technology to enter new fields. Research, technology development, etc. are also being conducted to respond to changes in the earth’s environment. Private-sector companies, meanwhile, are developing new products that reflect the needs of consumers.

Going forward, it will be important to conduct research and development aimed at guaranteeing stable supplies of safe agriculture, forestry, and fisheries products, take steps to turn agriculture into a sixth industry, and so on. It will also be crucial to ensure that research findings are applied and commercialized. To this end, it will not only be necessary to make use of human resources, information, and so on from a wide range of fields and to strengthen research management functions, but also to build a framework for cooperation by industry, academia and government, and for extension services to collaborate with universities, corporations and research and development institutes on producing sites, and so on.

3-65 Development of new varieties of rice for use as powder, animal feed, etc.

(Varieties of rice flour for making bread)

Koshihikari Mizuhochikara

(Varieties of rice for feed that are suited to regional climates)

Cold climate

Northern cool climate

Cool climate

Warm climate

Hot climate

Variety Unrefined brown rice yield (kg/10a)

Net weight of dried crops at the yellow

ripening stage (t/10a)

Use

Kitaaoba

Minayutaka

Bekogonomi

Fukuhibiki

Bekoaoba

Yumeaoba

Hokuriku 193

Hoshiaoba

Takanari

Kusahonami

Momiroman

Kusanohoshi

Mizuhochikara

(Refined brown rice)



(Refined brown rice) (Refined brown rice) (Refined brown rice)

Animal feed

Animal feed

Animal feed/WC

Animal feed

Animal feed/WC

Animal feed/WC

Animal feed

Animal feed/WC/Rice flour

Animal feed/ Rice flour

Animal feed/WC/Rice flour

Animal feed/ Rice flour

Animal feed/WCAnimal feed/WC/

Rice flour Source: National Agricultural Research Center for Kyushu Okinawa Region, National Agriculture and Food Research

Organization Note: * denotes air-dried weight at the full ripened stage. 3-66 Development of fluorescent thread by using genetically modified silkworms

Cocoons containing a fluorescent protein Fluorescent thread A dress made with

fluorescent threadA blue rose developed by a private-sector company, the first of its kind in the world

Source: National Institute of Agrobiological Sciences

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