WORLD TRADE
ORGANIZATIONG/AG/N/JPN/62
1 March 2001
(01-1015)
Committee on Agriculture Original:  English
NOTIFICATION
The attached notification concerning new or modified domestic support measures exempt
from reduction (Table DS:2)  was received from the delegation of Japan  on 23 February 2001.G/AG/N/JPN/62
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Table DS:2
DOMESTIC SUPPORT: JAPAN
Notification under Article 18:3 of the Agreement:
New or modified domestic support me asures exempt from reduction
__________________________________________________________________________________
(1) Full title of measure:
Rice Farming Income Stabilization Programme (JRIS)
Transitional Programme of the New Rice Policies
(2) Domestic legislation reference:
Administrative Orders for Rice Farming Income Stabilization Programme (JRIS)
Administrative Orders for Transitional Programme of the New Rice Policies
(3) Detailed description of measure with reference to criteria:
Through the introduction of the Law for Stabil isation of Supply, Demand and Price of Staple
Food (the Staple Food Law) in 1996 and the New Rice Policies in 1998, the distribution
system of rice was drastically reformed.  The control by the government on all the distributedrice, which had been practiced for more than half a century, was replaced by an unrestricted
distribution system by the private sector, which is based on market mechanism with no
intervention by the government in price formation.
It is essential to establish a mechanism to avoid damage to rice producers caused by the
fluctuation of prices of voluntarily marketed rice, in order to enable rice producers to devote
themselves to farming with conf idence in their stable income.
The Rice Farming Income Stabilization Programme (JRIS) and the Transitional Programme
of the New Rice Policies are government programmes.  They were established on the
occasion of the introduction of market mechanis m in price formation, aiming at mitigating the
negative effects on rice producers’ managements caused by the decline in the prices ofvoluntarily marketed rice.
(a) Rice Farming Income Stabilization Programme (JRIS)
This government programme provides assistance for a loss compensation programme which
is managed by the private sector under the production-limiting programme.  It offers direct
payments to rice producers  for their income losses in case of a fall in the prices of voluntarily
marketed rice.
(i) Target of the compensation:
The eligibility of the compensation is limited to voluntarily marketed rice which is
supplied by producers who participate in the production-limiting programme.  The
eligible amount of rice in the first year (1998 crop year) was some 3,925 thousand
tonnes, which accounts for 85 per cent or less of the base level of production.
(ii) Government assistance:
The assistance by the government is provided for a fund, namely, the JRIS Fund,
which is built-up by the producers.  The amount of government assistance is a fixedG/AG/N/JPN/62
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ratio of the compensation standard price, i.e. the average price of the voluntarily
marketed rice in the preceding three-year period.
(iii) Conditions and amount of payments:
In the case that the average price of the voluntarily marketed rice in the crop year inquestion falls below the standard price, the payment, which is limited to a certain per
cent of the said price gap, is made to the producers directly from the JRIS Fund.
As described above, this programme involves direct payments under a production-limiting
programme, with payments made on 85 per cent or less of the base level of production.  The
programme therefore conforms to the provisions of Article 6.5 (a) (ii) of the Agreement on
Agriculture.
(b) Transitional Programme of the New Rice Policies
This measure is a one-year-only scheme to provide direct payments for rice producers under
the production-limiting programme, aiming at a smooth introduction of the New RicePolicies, including the Rice Farming Income Stabilization Programme (JRIS).
(i) Target of the support:
The eligibility of the support is limited to voluntarily marketed rice, produced in the
1997 crop year, which is supplied by producers who participated in production-limitingprogramme in the 1997 crop year as well as the JRIS.  The eligible amount of rice was
some 3,880 thousand tonnes, which accounted for 85 per cent or less of the base level
of production.
(ii) Government assistance and amount of payments:
The amount of payments eligible producers receive is 80 per cent of the price gaps
between average prices of the voluntarily marketed rice of the specific rice variety
harvested in specific regions in 1994-1996 and that in 1995-1997 (i.e. the
compensation standard price of the JRIS for 1998 crop year).  The payments are made
directly to the producers from the government as well as the producers’ organisation.
The government’s share of support is 50 per cent of the total expense, while the
producers’ organisation bears the rest.
As described above, this programme involves direct payments under a production-limiting
programme, with payments made on 85 per cent or less of the base level of production.  The
programme therefore conforms to the provisions of Article 6.5 (a) (ii) of the Agreement on
Agriculture.
(4) Cost of measure:
JRIS: FY 1998: 9.6 billion Yen
Transitional Programme
of the New Rice Policies: FY 1998: 40.6 billion Yen (1-year programme)
(5) Date of entry into effect:
JRIS: 8 April 1998
Transitional Programme of the New Rice Policies: 1 April 1998G/AG/N/JPN/62
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(6) Period of application:
JRIS: FY 1998-
Transitional Programme of the New Rice Policies: FY 1998 (1-year programme)
(7) Products to principally benefit (if any individual product(s)):
RiceG/AG/N/JPN/62
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Table DS:2
DOMESTIC SUPPORT: JAPAN
Notification under Article 18:3 of the Agreement:
New or modified domestic support me asures exempt from reduction
__________________________________________________________________________________
(1) Full title of measure:
Support Programme for Reduction of Environmental Burden Due to Dairy Farming
(2) Domestic legislation reference:
Law Concerning the Appropriate Treatment and Promotion of Utilisation of Livestock
Manure
Administrative Order for Support Programme for Reduction of Environmental Burden Due to
Dairy Farming
(3) Detailed description of measure with reference to criteria:
Dairy farming has been developed along with the resource-cycling system which is based on
appropriate utilisation of lands.  However, in recent years, the average number of livestock ina farm has been rapidly increased, without accompanying the expansion of average grasslands
and/or forage fields.  This resulted in the shortage of land within a farm to utilise livestock
manure properly, and consequently brought about a situation which is prone to cause various
environmental problems.  Since the proper environmental management in the livestock
production areas is increasingly becoming a matter of public concern, it is required to reducethe environmental burden, which is due to livestock manure, through its appropriate
utilisation as a useful resource.
This programme provides assistance to dairy farmers who practice appropriate management
to tackle environmental problems, in order to contribute to the maintenance of favourable
environments.
The programme conforms to the basic criteria of Paragraph 1 of Annex 2 of the Agreement on
Agriculture:
a) The support is provided through a publicly-funded government programme
not involving transfers from consumers; and,
b) The support does not have the effect of providing price support to producers.
In addition, it meets the criteria of Paragraph 12 of Annex 2 of the Agreement on Agriculture
regarding environmental programmes:
a) The payments are only provided for eligible dairy farmers who fulfil the
requirements identified in the Administrative Order for Support Programme
for Reduction of Environmental Burden Due to Dairy Farming;G/AG/N/JPN/62
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b) The amount of payments is limited to the extra costs necessary for dairy
farmers to carry out appropriate environmental managements which is in line
with the Law Concerning the Appropriate Treatment and Promotion of
Utilisation of Livestock Manure, and is determined according to the scale of
grasslands and/or forage fields holdings of individual eligible dairy farmers.
(4) Cost of measure:
FY 1999: 6.7 billion Yen
(5) Date of entry into effect:
28 June 1999.
(6) Period of application:
FY 1999-
 (7) Products to principally benefit (if any individual product(s)):
Livestock productsG/AG/N/JPN/62
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Table DS:2
DOMESTIC SUPPORT: JAPAN
Notification under Article 18:3 of the Agreement:
New or modified domestic support me asures exempt from reduction
__________________________________________________________________________________
(1) Full title of measure:
Direct Payment to Farmers in the Hilly and Mountainous Areas
(2) Domestic legislation reference:
Article 35.2, Basic Law on Food, Ag riculture and Rural Areas
Administrative Order for Direct Payment to Farmers in the Hilly and Mountainous Areas
(3) Detailed description of measure with reference to criteria:
This programme provides direct payments for farmers who continue the farming activities for
at least five years under the community agreem ents.  The eligible farmlands for the payments
should be handicapped ones for agricultural production with certain reasons such as steep
sloping, and should be at least 1 hector in size.  At the same time, they should be within thespecific areas designated by various laws which deal with handicapped areas, such as the Law
on Special Measures for Depopulated Areas and the Mountainous Village Development Law.
The amount of payments farmers receive is determined by multiplying the area of eligible
farmlands by the amount per unit area, which is predetermined according to the types of
farmlands.  The aforementioned amount per unit area is equivalent to 80 per cent of the gapsof production costs between plain farmlands and the eligible farmlands.
The programme conforms to the general criteria of Paragraph 1 of Annex 2 of the Agreement
on Agriculture:
a) The support is provided through a publicly-funded government programme
not involving transfers from consumers; and
b) The support does not have the effect of providing price support to producers.
In addition, it meets the criteria of Paragraph 13 of Annex 2 of the Agreement on Agriculture
regarding regional assistance programme:
a) The eligibility for the payments are limited to farmers in designated areas
specified by various laws which deal with handicapped areas, such as the Law
on Special Measures for Depopulated Areas and the Mountainous Village
Development Law.  In addition, within the aforementioned designated areas,only handicapped farmlands for agricultural production with certain reasons
such as being steep sloping and being at least 1 hector in size are eligible for
the payments;
b) The amount of payments in any given year is not related to, or based on, the
type or volume of production undertaken by the farmer in any year after the
base period;G/AG/N/JPN/62
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c) The amount of payments in any given year is not related to, or based on, the
prices, domestic or international, applying to any production undertaken in
any year after the base period;
d) Payments are available only to farmers in the designated areas, but generally
available to all eligible farmers within such areas;
e) The payments are related to production factors, namely, the farmlands.  Since
there is a ceiling on the payment that individual farmers can receive, no more
payments are made above a threshold level of the farmland size.
f) The payments are limited to 80 per cent of the extra costs, namely, the gaps
of production costs between plain farmlands and the eligible farmlands,
involved in undertaking agricultural production in the eligible farmlands.
(4) Cost of measure:
FY 2000: 33 billion
(5) Date of entry into effect:
1 April 2000
(6) Period of application:
FY 2000-
(7) Products to principally benefit (if any individual products(s)):
This programme is not product-specific.
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