The Impacts of the Rice Price-Support Programs on the Structural Transformation of the Rice Sector
One of the primary concerns in Japanese agriculture since the Basic Agricultural Act of 1961 has been the implementation of more efficient and productive farming on larger-scale farmlands. This concern has received even greater attention because of persistent pressure from foreign countries for the liberalization of Japanese markets, including in many senses the most important agricultural product in Japan, i.e., rice. As already seen in Chapter 1, in spite of the government’s efforts to promote land movements, the transition from small- to large-scale farming has not thus far made significant progress. One major reason for this is the rapid increase in the market price of farmland, caused in large part by a strong demand for land for nonagricultural purposes such as: the construction of highways, railways, factories, and residential areas. This has given farmers a strong incentive to retain their lands as profitable assets.
KeywordsEntire Study Period Intermediate Input Policy Effect Small Size Class Rice Price
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