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© 1988 Oxford University Press and the Foundation for the European Review of Agricultural Economics

research-article

In search of agricultural policy reform in Japan

MASAYOSHI HONMA1 and YUJIRO HAYAMI2

1Otaru University of Commerce Hokkaido
2Aoyama-Gakuin University Tokyo

Summary

Japan's agricultural border protection is high for food, but low for feed, thus effectively protecting both rice and meat products. This border protection is complemented by other governmental support in the form of direct subsidies, capital subsidies, price support, together amounting to 37% of agricultural GDP in 1985 and not offset by the taxes paid by farmers or on farm products. Changing this protective structure requires resource adjustment, which can be brought about by changing agricultural terms of trade, concomitant with an increase in average farm size and a decline in part-time farming, through a more liberal land-use policy.


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