EDITORIAL: Future of agriculture

Japan should produce more foodstuffs, export high-quality farm produce to other parts of Asia and create jobs. What can be done to transform this nation's agriculture?

The administration of Yukio Hatoyama has drawn up basic agricultural policy outlines for the next 10 years that envisage raising the food self-sufficiency rate from 41 percent recorded in fiscal 2008 to 50 percent in fiscal 2020.

But the problem is that nothing specific was decided that would allow Japan to achieve that goal.

The amount of abandoned farmland across the nation is equivalent in area to Saitama Prefecture. People aged 65 or older account for 60 percent of the farming population. At this rate, the underlying pillars of agriculture could fall apart in 10 years. Time is short, and measures must be taken without delay.

At issue is what policy measures could be taken to overcome the crisis that affects the domestic farming industry.

The income indemnity system for individual farming households, one of the Hatoyama administration's key election pledges last fall, took effect in April. Under this system, the government pays subsidies to individual rice-growing households to help them cover losses when their income from sales does not match the costs for growing rice.

The system could prove effective in motivating farmers and getting more people into this line of work. The program will likely play a major role in making Japanese agriculture more competitive.

Unfortunately, the Hatoyama administration gave first consideration to election tactics and modified the initial plan, which would apply the program only to large-scale farmers.

It decided to apply the system to cover all 1.7 million rice-growing households. Under this policy, part-time farming households that grow rice on a small scale could choose to refrain from selling off their farmland, instead of withdrawing from rice growing. As a result, consolidation and streamlining of the farming industry will likely be set back.

If Japan is to become more competitive in agriculture, we believe the government needs to whittle down the number of farmers who are eligible for the income compensation system. A figure in the hundreds of thousands of highly motivated core farming households would suffice.

As the system is designed to support large-scale farmers, it is difficult to apply it to farmers in mountain regions, where few large-scale farming operations exist.

A separate additional policy is needed. For example, terraced rice paddies have diversified functions such as flood control, development of underground water and serving as an oasis that provides peace of mind to people. Why not establish a subsidy system based on the viewpoint of environmental conservation?

For the income indemnity program to take root, however, measures are needed to secure a permanent source of funds to finance the huge costs. While about 560 billion yen ($6 billion) is earmarked in the current fiscal year budget, about 1 trillion yen will be needed every year from fiscal 2011.

As the system requires a huge amount of taxpayer money, it must effectively benefit consumers, too.

For that, opportunities should be expanded for consumers to buy rice at lower prices than now. Currently, domestic rice prices are maintained at high levels under the government policy of adjusting rice production through reduction of rice acreage.

The government needs to abolish the policy and lower rice prices. Although the policy shift would be an ordeal for rice farmers, a safety net in the form of individual income compensation should effectively lessen the pain.

If domestic rice becomes cheaper, its competitiveness with imported grain would increase. It would also be possible to re-examine high tariffs on rice imports. As a result, the government would be able to move forward in trade negotiations that have been held back partly because of Japan's agriculture problems, including rice imports.

Drawing a road map for agriculture that can attract public expectations is the key to success.

--The Asahi Shimbun, April 30