A critical evaluation of the new policies and their effects on paddy-field farming
2006
Isoda, H.(Kyushu Univ., Fukuoka (Japan))
Since the enforcement of the Food Law, the rice set-aside has been enlarged, the production conversion on paddy field has been expanded, the rice marketing has been deeply liberalized, and the rice farm stabilization program was introduced. However, the rice overproduction and price decline is still lasting, and the structural problem of paddy-field farming is not yet solved. The Rice Policy Reform was proposed aimed at achieving an evacuation of the central government from the rice set-aside program and a structural reform of paddy-field farming. But the participation rate in its rice farm stabilization program is very low, and the program against the rice surplus is also quite weak. The New Basic Plan was prepared as a large policy reform in order to promote the closing of the post-war agricultural policies, but at the same time, it remains a goal for the rise in food self-sufficiency. Presupposing the substantial tariff reduction in sensitive products, it carries a extremely ambitious goal for the farm structure, and has decided to introduce a new non-product-specific payment which will be paid only to very limited eligible producers with certain farm size. However, its structural goal is too far from the present conditions and the non-product-specific direct payment can't be expected to work effectively for the structural reorganization. In addition, the payment is not effective for the rise of food self-sufficiency either, because of its limited recipient eligibility. In order to strengthen the paddy-field farming structure and raise the food self-sufficiency, a set of product-specific payments and a deficiency payment for rice is thought to be needed.
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