G/AG/N/JPN/192  
 
2 April 2014  
(14-2003)  Page: 1/4  
Committee on Agriculture  Original: English  
 
NOTIFICATION 
 The following submission, dated 18 March 2014, is being circulated at the request of the 
Delegation of Japan . The notification concerns new or modified domestic support measures exempt 
from reduction ( Table DS:2 ). G/AG/N/JPN/192 
 
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  Table DS:2 
DOMESTIC SUPPORT: JAPAN 
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction commitment 
 
 
(1) Full title of measure: Direct Payment for Rice 
 
(2) Domestic legislation reference: The law for Stabilization of Supply-Demand and Price of 
Staple Food 
 
(3) Detailed description of measure with reference to criteria, i.e. those in: 
 
This programme is classified as "Direct payments under production-limiting programmes" in 
Article 6.5(a) (ii) of the Agreement of Agriculture.  
In response to aging and decreasing numbe r of farmers and a substantial decline in 
agricultural income, the new direct payment program has been introduced in order to create 
an environment where motivated farmers can continue rice production in paddy fields, which account for about half of the total farmland in Japan. 
 
The payment is made per unit area of producti on, and consists of two components : i) the 
fixed component calculated based on the historic al gap between the national average cost of 
production and farm gate price and ⅱ) the variable component which is paid only in the 
year when the farm gate price goes below a fixed threshold. 
 
The payment was introduced as a pilot programme in FY 2010, and formally started in 
FY 2011. In FY 2010, the payment was made to 1.13 million ha of paddy fields (out of 2.36 million ha of total paddy fields). 
 
This measure conforms to the criteria in Article 6.5(a) (ii), because it is a direct payment under a production-limiting program and the payment made on 85% or less of the base level of production. 
 
(4) Cost of measure: FY2010: 306.8 billion yen 
 
(5) Date of entry into effect:  1 April 2010 
 (6) Period of application: FY 2010 – 
 
(7) Product to principally benefi t (if any individual products(s)):  Rice 
 G/AG/N/JPN/192 
 
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  Table DS:2 
DOMESTIC SUPPORT: JAPAN 
Notification under Article 18:3 of the Agreement:  
New or modified domestic support measures exempt from reduction commitment 
 
 
(1) Full title of measure: Measures to solve the problems on farmers and farmlands 
 
(2) Domestic legislation reference:  
Administrative Orders for payment for farmland accumulation 
Administrative Orders for payment for new young farmers 
 
(3) Detailed description of measure with reference to criteria, i.e. those in: 
 This programme is classified as "Structural adjustment assistance provided through investment aids" in Annex 2, Paragraph 11 of the Agreement of Agriculture. 
 
Japanese agriculture is facing problems on farmers and farmlands, such as aging and decreasing number of farmers, small and scattered farmland and increase in abandoned 
cultivated land. In light of these situations, the following programmes have been introduced 
in order to facilitate the structural adjustment based on the plans on farmers and farmlands made by the farmers in each region. 
 
a. Payment for farmland accumulation 
In order to overcome a situation of structural disadvantages, arising from small and 
scattered farmland, the direct payment to regional farmers has been introduced to 
encourage farmland accumulation based on ea ch regional plan. The payment amount is 
determined by the volume of accumulated areas and limited to extra arrangement cost accompanied by exchanging farmlands, and it is a one-time payment made when the 
tenancy contract is made to accumulate the farmland usage. 
b. Payment for new young farmers 
In order to secure labour force to sustain agricultural land by doubling the new young 
farmers, the direct payment for young farmers has been introduced, which provides 
income support to new young farmers registered in each regional plan during the training period (maximum two years) and the initial operation period (maximum five years). The payment is fixed and limited to the amount required to compensate initial 
investment costs. The payment should be returned if trainees do not start farming within 
a certain period, and the payment is to be cut off when their income exceeds the certain amount. 
As described above, this measure therefore is consistent with criteria in Annex 2, 
paragraph 11. 
 
This measure also conforms to the basic criteria of Paragraph 1 of Annex 2 of the Agreement 
on Agriculture, as the support; (a) is provided through a publicly-funded government programme not involving transfers from consumers; and (b) does not have the effect of providing price support to producers. 
 
(4) Cost of measure:   
Payment for farmland accumulation FY2011: 11.0 billion Yen 
Payment for new young farmers FY2012: 19.1 billion Yen 
 G/AG/N/JPN/192 
 
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  (5) Date of entry into effect:  
 
Payment for farmland accumulation 1 April 2011 Payment for new young farmers 1 April 2012 
 
(6) Period of application:  
 
Payment for farmland accumulation FY 2011 - 
Payment for new young farmers FY 2012 - 
 (7) Product to principally benefi t (if any individual products(s)):  None 
 
 
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