Structural changes in production and countermeasures of globalization in Hokkaido [Japan] agriculture: Consideration of direct payment for land-extensive farms

Shiga, E.

Structural changes in production and countermeasures of globalization in Hokkaido [Japan] agriculture: Consideration of direct payment for land-extensive farms

2008

Shiga, E.(Hokkaido Univ., Sapporo (Japan))

The purpose of this paper is to examine a perspective of up-land and dairy farming in Hokkaido under economic globalization. The following points are examined. (1) The incentive of a scale expansion of up-land and dairy farming in Hokkaido, (2) the influence of direct payment for land-extensive farms, and (3) the countermeasures of Hokkaido agriculture under economic globalization. The scale expansion of up-land and dairy farming in Hokkaido was carried out, without reducing production efficiency. So, according to the scale expansion, the agricultural income increased and had reached a level exceeding household expenses. This increase in income was the incentive of the scale expansion. Direct payment for land-extensive farms reduces agricultural incomes and confuses farmland mobilization. Moreover, an agricultural income does not necessarily increase even if carried out scale expansion is. Therefore, a scale expansion may create an incentive fall and the cost cut from expansion may be decreased. Agricultural products of Hokkaido cannot compete with imported agricultural products in price. Globalization with the present condition brings a remarkable reduction of the number of farmhouses, and the amount of agricultural products. Countermeasures to globalization, in relation to up-land and dairy farming in Hokkaido, are to make more efforts to improve the competitiveness of domestic products against imported goods, for example, the safety and the suitability for processing, while leading consumers to acknowledge these advantages. At the same time, it is also important to rotate crops strictly and reduce production costs.

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