The present situation of domestic wheat production and the challenge to introduction of new variety wheat under the new wheat policy scheme
2004
Maruyama, Y. (Kyushu Univ., Fukuoka (Japan)) | Yutaka, T. | Fukuda, S. | Kai, S.
The purpose of the 'new wheat policy' is to resolve the mismatch between demand and the government introduced market mechanism in dealing in wheat. At present, the market mechanism appears to not function properly. Although a kind of wheat is priced low, it is produced in quantity. On the contrary, the production of a new kind of wheat which has great demand but sold at high price will not be expanded. There are three factors that obstruct the function of market mechanism and production of a new kind of wheat. These are a restriction of market price, a lack of relation between the domesticwheat market and the subsidy rank of stable wheat-product-management and the government-purchase schemes. The lack of relation relation between the domestic wheat market and the subsidy rank is the most important factor of the three. As a proportion of the subsidy to wheat farmers' income is very high in Japan, the subsidy has a bigger effect on farmers' income than the wheat market price. In order to expand both production and demand for new kinds of wheat, the subsidy rank needs to be related to the result of a bid for wheat market. In addition to the subsidy, the fundamental principle of measures for the promotion of the farming practices contributing to effective use of paddy fields is related to the result of wheat market bids.
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