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Impact of direct payments on agricultural land use in less-favoured areas: evidence from Japan
[Effects of differing farm policies on farm structure and dynamics]

Author

Listed:
  • Taisuke Takayama
  • Noboru Hashizume
  • Tomoaki Nakatani

Abstract

We examine the effect of direct payments in less-favoured areas (LFAs) on agricultural land use and farm numbers in Japan, using community-level panel data. Direct payments, which take a unique form in Japan, are made to rural communities that have sloping farmland and are designated as ‘less-favoured’. We exploit whether a community is located in a designated area as an instrument for receipt of direct payments. Our instrumental variable estimates find that, although LFA payments fostered continued land use and prevented farmland abandonment through maintenance of farm households and household members, these effects are modest.

Suggested Citation

  • Taisuke Takayama & Noboru Hashizume & Tomoaki Nakatani, 2020. "Impact of direct payments on agricultural land use in less-favoured areas: evidence from Japan [Effects of differing farm policies on farm structure and dynamics]," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 47(1), pages 157-177.
    • Handle: RePEc:oup:erevae:v:47:y:2020:i:1:p:157-177.
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    File URL: http://hdl.handle.net/10.1093/erae/jbz008
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    Citations

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    Cited by:

    1. Taisuke Takayama & Tomoaki Nakatani & Tetsuji Senda & Takeshi Fujie, 2021. "Less‐favoured‐area payments, farmland abandonment and farm size: evidence from hilly and mountainous areas in Japan," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(3), pages 658-678, July.
    2. Barbara Kutkowska & Tomasz Szuk & Stanislaw Minta & Hanna Adamska, 2024. "Land productivity in the EU in the context of financial support through direct subsidies," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 70(9), pages 436-445.
    3. Brunella Arru & Roberto Furesi & Fabio A. Madau & Pietro Pulina, 2021. "Economic performance of agritourism: an analysis of farms located in a less favoured area in Italy," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-21, December.
    4. Keiko Sasaki & Stefan Hotes & Tomohiro Ichinose & Tomoko Doko & Volkmar Wolters, 2021. "Hotspots of Agricultural Ecosystem Services and Farmland Biodiversity Overlap with Areas at Risk of Land Abandonment in Japan," Land, MDPI, vol. 10(10), pages 1-20, October.
    5. Atomu Nitta & Yasutaka Yamamoto & Simone Severini & Katsunobu Kondo & Daisuke Sawauchi, 2022. "Effects of direct payments on rice income variability in Japan," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(1), pages 118-135, January.
    6. A. Ford Ramsey & Tadashi Sonoda & Minkyong Ko, 2023. "Intersectoral labor migration and agriculture in the United States and Japan," Agricultural Economics, International Association of Agricultural Economists, vol. 54(3), pages 364-381, May.
    7. Ramsey, A. Ford & Sonoda, Tadashi & Ko, Minkyong, 2021. "Aggregation and Threshold Models of Intersectoral Labor Migration: Evidence from the United States and Japan," 2021 Conference, August 17-31, 2021, Virtual 315110, International Association of Agricultural Economists.
    8. Nitta, Atomu & Yamamoto, Yasutaka & Kondo, Katsunobu & Sawauchi, Daisuke, 2020. "Direct payments to Japanese farmers: Do they reduce rice income inequality? Lessons for other Asian countries," Journal of Policy Modeling, Elsevier, vol. 42(5), pages 968-981.
    9. Kehinde Oluseyi Olagunju & Myles Patton & Siyi Feng, 2020. "Estimating the Impact of Decoupled Payments on Farm Production in Northern Ireland: An Instrumental Variable Fixed Effect Approach," Sustainability, MDPI, vol. 12(8), pages 1-17, April.

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