Comparison of Agricultural Policy in the U. S. and the Japan

In this report, similarities and differences in the future direction of the agricultural policy in the U.S. and the Japan will be discussed. The 1996 American agricultural law, in terms of price and income support, it is moving towards liberalization. Constitutionally it still obeys the price and income support, but this has kept to low level which in real terms may be said as liberalized. Again in the field of agricultural export, it has been made to promote export. In the American agricultural policy, the idea of how to adjust export in the future demand and supply of the world market is observed. That means the feature of export policy is reflected in the agricultural policy of the Unite States. In the improvement and structural change of farmland, they are left to be fulfilled by the individual farmer. Concerning environmental protection, extended policy is being implemented. American agricultural policy has some especial features like policy for an export oriented commodities, minimum price guarantee in low price, environmental protection. In Japan in the new agricultural policy, price and income support for main crop (rice) has been abolished. But the support for the land improvement and rural social capital has increased. Concerning the import of agricultural products, the policy is being revised based on the agreement of GATT, but is not actively performed. Concerning the environmental protection, the policy was included with the structural policy. In the agricultural policy in Japan, three major policies are contained. These are, the government controlled productivity improvement policy, policy for improvement of rural community and the environmental policy. From the comparison it can be observed that the American and Japanese agricultural policy have common direction of policy improvement, while the direction of the main objective of the future policy differ. It is true that the 1996 American policy may be revised in the future aid in Japan price and income support may rivival under the government control. Though in both countries policies there are many points that are not clear, the probability of returning to agricultural policy centerd price and income support policy means unlikely.