Govt likely to expand compensation for farmers
The Yomiuri Shimbun | Oct. 21, 2011
Govt likely to expand compensation for farmers
With participation in Trans-Pacific Partnership comprehensive trade talks and resumption of an economic partnership agreement with Australia on the horizon, the government is likely to increase its direct payments to farmers by several hundred billion yen, it has been learned.
Government sources said the current policy of imposing high tariffs on imports to control farm product prices in the domestic market will likely be changed, in line with the trend for global trade liberalization.
The government currently gives farmers a total of about 1 trillion yen a year in subsidies and other forms of direct payment. With the formation of new economic partnerships seen as likely, such direct payments are expected to increase by several hundred billion yen, the sources said.
Under the current direct payment scheme, the government compensates farmers for falls in the prices of farm products, and provides income compensation for individual farmers. Because it is funded by public money, the scheme is categorized as a "taxpayer-burden" system.
Other government measures aimed at supporting farmers include maintaining prices by imposing high tariffs on imported farm products, and buying up domestic farm products. These methods push up the retail prices of farm products, and thus are categorized as "consumer-burden" systems.
The sources said a plan to expand direct payments to farmers was included in the government’s basic policy and action plan for reviving domestic food, as well as the agricultural, forestry and fisheries industries, which was compiled Thursday.
The policy is aimed at restructuring the agricultural industry, and consolidating farmland so the majority of farmers working flat land will have plots of 20 to 30 hectares, the sources said.
The policy also details a plan to increase the number of young people who become farmers.
The government will ask the corporate sector, which is likely to benefit from new international economic partnerships, and taxpayer households to shoulder the financial burden of expanding the direct payments to farmers.
The government will seek nationwide discussion on the matter before finalizing the details of the expanded direct payment system, with details to vary according to the terms of different economic partnership agreements, the sources said.
Specifically, the government will consider expanding the range of farm products subject to the income compensation system for individual farmers, the sources said. The range currently includes rice, wheat, soybeans and other products.
