Japan Agriculture Policy Review

Japan, with a population of about 125 million, is a major importer of agricultural products. Japan's mountainous topography limits the area available for farming, with a total cultivated land area of around 4.8 million hectares. Farm holdings are small, averaging just over 1.5 hectares. Japan has producer support levels among the highest in OECD, driven in part by food security concerns and memories of food shortages during World War II and its aftermath. The Ministry of Agriculture, Forestry, and Fisheries (MAFF) has used a combination of border measures, domestic policies including direct budgetary payments, regulation and mandated administrative processes to support domestic production. This policy note first provides an overview of the policies that Japan has traditionally used to support its agricultural sector. Following this, new policy developments that seem to signal a shift towards a more decoupled framework are described. Finally, some possible changes in the structure of Japanese agriculture resulting from demographic drivers are outlined