Japan to draw up farmland reforms to keep up with global FTA trend
Wednesday May 9, 2007
Japan to draw up farmland reforms to keep up with global FTA trend
(Kyodo) — Japan will draw up a package of farmland reform measures by this fall in a bid to enhance the competitiveness of its ailing agricultural sector and keep up with the global trend of sealing free trade agreements, a key government economic panel said Wednesday.
The Council on Economic and Fiscal Policy headed by Prime Minister Shinzo Abe endorsed the farm ministry’s policy of drafting such a package. Four private-sector members of the panel urged the government to strive to eliminate abandoned farmland in Japan within five years.
Japan’s heavily protected agricultural sector is considered to be a major stumbling block for the country to negotiate FTAs with major food exporters.
The four said Japan’s agricultural industry is in "a critical situation" with rapid aging of farmers and an increase in deserted crop fields.
They maintained that effective use of cultivated land is essential in transforming the farm sector into a competitive one, pointing to the need to raise productivity by aggregating small lots and fostering enterprises that operate larger fields.
The private-sector members with industry and academic backgrounds sought ways to facilitate farmland transfers such as allowing land owners to acquire shares from companies that purchase crop fields.
However, farm minister Toshikatsu Matsuoka argued that trading of shares and agricultural land may not proceed smoothly. He was also not confident enough about setting a five-year deadline for reducing abandoned farmland, according to economic and fiscal policy minister Hiroko Ota.
Ota is in charge of running the policy-setting panel, which comprises six Cabinet ministers, the Bank of Japan governor and the four private-sector representatives.
