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The Puzzle of Small Farming in Japan

Author

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  • Yoshihisa Godo

Abstract

Japan’s small farming represents a puzzle. Currently nearly three-quarters of farmland is operated by farmers whose farm size is well under optimal size. Being too small is the main reason for the high cost of Japanese farm products, so why does inefficient, small farming persist and market mechanisms not function? This paper explains the political dynamics whereby traditional small farming communities are powerful voting groups that prefer to maintain their political power rather than increase farm income. By exerting political pressure upon the authorities, farmers can obtain large returns through the manipulation of farmland-use regulations, even though such manipulation causes social harm by preventing efficient land use. Farmland problems are linked to the social problem of Japan’s underdeveloped participatory democracy, which is a problem in East Asian countries as well. These issues are not generally discussed by the Japanese mass media and academics. This paper also includes the author’s policy suggestions for new farmland-use regulations and taxation.

Suggested Citation

  • Yoshihisa Godo, 2007. "The Puzzle of Small Farming in Japan," Asia Pacific Economic Papers 365, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:csg:ajrcau:365
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    File URL: https://crawford.anu.edu.au/pdf/pep/apep-365.pdf
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    Citations

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    Cited by:

    1. Sawako Shigeto & Lionel Hubbard & Philip Dawson, 2008. "On farmland prices and rents in Japan," Agricultural Economics, International Association of Agricultural Economists, vol. 39(1), pages 103-109, July.
    2. Godo, Yoshihisa, 2009. "The Changing Political Dynamics of Japanese Agricultural Cooperatives," 2009 Conference, August 16-22, 2009, Beijing, China 51400, International Association of Agricultural Economists.
    3. Godo, Yoshihisa, 2012. "Evaluation of Japanese Agricultural Policy Reforms Under the WTO Agreement on Agriculture," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125102, International Association of Agricultural Economists.
    4. Godo, Yoshihisa & Takahashi, Daisuke, 2008. "Japan: Shadow WTO Agricultural Domestic Support Notifications," IFPRI discussion papers 822, International Food Policy Research Institute (IFPRI).
    5. Godo, Yoshihisa, 2012. "Evaluation of Japanese Agricultural Policy Reforms Under the WTO Agreement on Agriculture," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125101, International Association of Agricultural Economists.

    More about this item

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

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