The Japanese government recently announced that it would begin phasing out select agricultural subsidies, specifically subsidies given to rice farmers, as part of a widespread agricultural reform program.
The Japanese agricultural sector is one of the most protectionist in the world. Japanese import tariffs are high and farm production is deliberately kept low, as part of an effort to limit overseas competition and stabilize the prices for one of the nation’s staple crops.
Despite the small size of Japan’s farm sector, the industry wields a disproportionate amount of political power in the Japanese legislature.
Despite this clout, the Japanese government has recently embraced new farm reforms, potentially as a sign that it is willing to consider joining the Trans-Pacific Partnership, a US led free trade zone that would encompass the entire Pacific Rim, including economic powerhouses like the United States and China.
The Japanese rice plan would gradually eliminate payments to rice farmers that limited their overall production. The proposal would increase competition among rice farmers and rice producers, economists believe, potentially bringing Japanese rice prices into line with broader international prices.
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Written by: Justin Ellison / Farm Plus Staff Writer