• New measures for vegetable farming are introduced to assure and stabilize principal farmers’ income. For example, appropriate implementation of contract transaction and adjustment of supply and demand is promoted. Furthermore, a system for encouraging the programs for fostering and securing principal farmers is to be introduced into the price stabilization policy. The new system is to be applied to crops to be harvested in 2007.

• The conventional policy of stabilization measures for fruit farm management is replaced by a new fruit farming measure. The fruit farming areas and principal farmers are advised to develop the “Structural Reform Program in Fruit Producing Area” and to make efforts to introduce positive measures such as diversion to superior crops. The Government supports such fruit farming areas and principal farmers by introducing the support measures for fruit farm management. The new support system is to be applied to crops to be harvested in 2007.

Outline of New Measures for Vegetables Farming

Assurance of profit from the actual users

Assurance of profit from the market

Promotion of contract transaction

Appropriate implementation of adjustment of supply and demand

A program that enables fostering and securing principal farmers is to be introduced into the price stabilization policy.

## Outline of New Measures for Fruit Farming

• Replanting and grafting of superior items and varieties, closure of disadvantageous fruit farms

Replanting Mandarin orange, apple (dwarfing included), other fruit trees

Grafting

Mandarin orange, apple, other fruit trees

Closure of disadvantageous fruit farms | Mandarin oranges, etc.

• Improvement of small scale farms (construction of farm path, reducing slope inclines, improvement of soil layers)

→ Concentrated support for principal farmers under the price stabilization policy

Construction of farm path, reducing slope inclines, improvement of soil layers

Source: Prepared by MAFF

Mandarin orange, apple, other fruit trees

Source: Prepared by MAFF

• In consideration of the purposes and efficacy of previous measures for the stabilization of livestock farming, the farmers eligible for support under the measure for stabilization of beef cattle fattening operations, and the fund for stabilization of local hog production, are to be reviewed. Priority consideration is to be given to the certified farmers.

• In order to facilitate the transition to the new system in FY2007, the number of certified farmers is to be increased, and the operation level of the farmers who are regarded as semi-certified farmers is to be improved. The principal farmers are expected to establish a production structure that enables production according to consumers’ needs as well as the development of profitable livestock farming.

Reviewing Farmers Eligible for Support under the Measure for Stabilization of Livestock Farming

System for Offering Subsidies to Manufacturing Milk Producers
Producers participating in planned production (Same as at present)	(Purpose) To realize reproduction of manufacturing milk and promote stabilization of production and supply and demand of raw milk. (Effect) Because the farmers are limited to those participating in the planned production program, planned production can be implemented in a strict manner, and the stabilization of the supply and demand for all raw milk can be promoted.
System for Offering Subsidies to Veal Cattle Producers
Producers of veal cattle (Same as at present)	(Purpose) To introduce as a compensatory measure for beef liberalization. To enable farmers involved in breeding operations to assure cattle reproduction and to promote the stabilization of beef cattle production. (Effect) According to the system of beef cattle production in Japan, the farmers involved in fattening operations fatten and ship the breeding cattle produced by the farmers involved in breeding operations. In this situation, the system is applied to many veal cattle producers, and the stabilization of beef cattle production can be promoted.
Project for Stabilization of Beef Cattle Fattening Operations Project for Establishment of Fund for Stabilization of Local Hog Production
In addition to the certified farmers who are given priority consideration, farmers who are regarded as semi-certified farmers are separately selected as special applicants.	(Purpose) In the event of a decline in the price of beef, dressed carcasses and pork, compensation is paid to the producers so that fattening operations and hog raising operations can be stabilized. Remarkable progress of reform of structure of fattening operations and hog raising operations can be expected.

Source: Prepared by MAFF