Problems and Perspectives of Agriculture in Northeast Asia

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Other Title
  • 条件不利地域農業の課題と振興方策
  • 第3報告 条件不利地域農業の課題と振興方策
  • ダイ3 ホウコク ジョウケン フリ チイキ ノウギョウ ノ カダイ ト シンコウ ホウサク

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Abstract

This paper explores the problems and perspectives of agricultural policy in northeastern Asian countries as a less favorable area in the world, especially focusing on current agricultural programs in Japan and Korea. One of the outstanding features of the current Korean agricultural policy is the introduction of 8 programs of direct payments in just less than 10 years for supporting small and middle-size farmers and guiding them toward ecological farming. These programs are neutral to structural changes in farming, and attach importance to income support of rice farmers. Though the Korean direct payments programs have been highly appreciated in Japan, they are guessed to be replaced by programs promoting structural improvement after the retirement of elderly farmers. The programs in that sense are thus not sustainable.<br>In contrast to Korea, the Japanese government introduced structural improvement measures into existing direct payments for farming in less favorable areas and upcoming direct payments for income compensation in 2007. The latter direct payments program is called “the Japanese type of direct payments”, and targets only large-scale farmers and community-based farming. The program is unique and never seen in the programs of European countries. But the structural improvement will not be easily accomplished in line with the purpose, because farmers hesitate to sell their land or lend it to large-scale farmers for long-term use due to the expectation of capital gain from selling their land as land for other use. It is necessary to zone agricultural land stably for promoting structural improvement by reducing the expectation of capital gain. One measure is to set up zoning criteria for agricultural land as distinct from those for urbanization. Under such stable zoning, it would be preferable to transfer direct payments without any target, which will thus distribute the resources by market mechanism optimally.<br>Zoning is a common issue among northeastern Asian countries, and should be examined more deeply from now on.

Journal

  • Journal of Rural Problems

    Journal of Rural Problems 41 (4), 355-364, 2006

    The Association for Regional Agricultural and Forestry Economics

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