![]() This is because Japan’s Cropland Act - an important law protecting smallholders and regulating the use of arable land - remains intact. Despite the amendment, each municipality must first submit a request to the Japanese government and have tracts of land approved as a Special Zone before corporations can own farmland in their jurisdictions. Starting a career in agriculture as an employed farmer has become common.īut the amendment will not boost labour supply in the agricultural sector immediately. The government expects the change to lead to an increase in the number of workers in the sector, where a majority of farming entities are still family-owned.Ĭorporations can be a good entry point for young prospective farmers, which is crucial considering Japan’s agricultural population is rapidly ageing and decreasing. The government also expects corporations will make efficient use of Japan’s abandoned farmlands - which currently total over 0.4 million hectares.Īllowing corporations to own agricultural land will encourage outsiders to enter the farming industry. The 2020 Census of Agriculture and Forestry shows the average area of agricultural land per farm entity is 3.1 hectares, which is less than one-fifth of the typical farm size in the European Union and less than one-sixtieth in the United States. The amendment primarily aims to scale up farming and increase agricultural productivity in Japan. ![]() Before the amendment was made, corporations could only own agricultural land in government-designated National Strategic Special Zones. ![]() The amendment allows corporations to own agricultural land nationally, based on requests from municipalities, and could be a first step to increasing agricultural productivity in Japan. In April 2023, the Japanese government approved a new draft amendment to the Special Zones for the Structural Reform Act. Economics, Politics and Public Policy in East Asia and the PacificĪuthor: Yusaku Yoshikawa, JIN Corporation
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