Debt problems of livestock farms in Japan: Implications for Japanese agricultural policy.
1990
Kobayashi S.
In this article an analysis of the recent financial problems in Japanese livestock industries is presented. Although Japan's agriculture is well known as being highly protected, her livestock industry, which enjoyed the most rapid growth among agricultural sectors has been facing severe financial difficulties. The author analyses the situation, the reason behind it and its implication to Japanese agricultural policy. So as to know the situation of debt problems among livestock farms, the amounts of subrogation payments by Agricultural Credit Fund Associations were used. They have dramatically increased since the middle 1970's and the livestock sector accounted for the majority of total cases and amounts subrogated. As factors contributed to a farm having debt problems, the author pointed out the fragile financial character and low technical level including management skill of farmers, combined with the depressed price situation of livestock products. The decline of prices was brought by stagnation in demand for livestock products, increasing imports (Loopholes in import systems have also contributed to this.) and political decisions of reducing support prices for livestock products due to domestic and international pressures for further deregulation. The recent financial problems which have occurred in the livestock sector have meant that creating large-scale and efficient farms through the selective policy of the Agricultural Basic Law has not generally succeeded. This means that Japan's agricultural policy has failed to reduce the disparity in productivity of agriculture relative to that of non-agricultural industries as whole.
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