yen by 2013.

(Collaborations between the food industry and agriculture, reduction of food supply costs)

• The formation of food industry clusters will be promoted, and support will be given to the creation of new strategic food made of local ingredients, the stable procurement of domestic agricultural products, and other activities.

• Efforts will be made to reduce food supply costs during production, distribution and at all other phases of food supply, in accordance with the “Action Plan for the Reduction of Food Supply Cost”.

(Establishment of fundamental conditions for farm management development)

• The development of new technologies directly meeting the needs of producers, as well as the introduction of various technologies into producing areas, will be promoted. Support will also be given to activities relating to the protection and utilization of intellectual property rights on new varieties and other inventions.

• New industrial fields will be cultivated by promoting the development of new food and ingredients based on Japan's technological prowess, and creating new demands through the utilization of intellectual property rights.

• The agricultural production base will be improved through such measures as large-size farmland consolidations, the creation of multipurpose paddy fields, and the upgrading and maintenance of irrigation facilities and other facilities.

(Enhancement of the cyclical function of nature, promotion of the use of biomass)

• The adoption of and compliance with the Codes for Agricultural Practice in Harmony with the Environment (Agricultural Environment Code), the introduction of highly sustainable agricultural production methods, and measures for improving the livestock environment will be promoted. In addition, the global environmental protection measures in the area of agriculture, such as the reduction of global warming and the conservation of biodiversity, will be upgraded.

• The use of biomass will be accelerated in accordance with the Biomass Nippon Strategy. As regards domestic biofuel in particular, efforts will be made, in accordance with the progress schedule to expand domestic biofuel production formulated in February 2007, to develop and perform technical verification for regional biofuel production models, and promote the development of technologies for efficiently producing ethanol from rice straw, wood, resource crops and other sources.

## 6 Measures Related to the Promotion of Rural Areas

(Formulation of local resource conservation policies)

• Support will be given to collaborative activities conducted in community to effectively and appropriately conserve land, water and other resources, as well as the rural environment. Support will also be given to improved farm practices by farmers aimed at environmental conservation, such as a great reduction in the use of chemical fertilizers and pesticides.

(Promotion of integrated efforts toward the revitalization of agricultural, forestry and fishery communities)

• Applicable laws and regulations will be modified to revitalize agricultural, forestry and fishery communities through the promotion of the settlement of people in rural communities and multi-habitations, as well as exchange among agricultural, forestry and fishery communities. In addition, a new grant will be established to support various activities, such as the upgrading of facilities, in an integrated and flexible manner, irrespective of their categorization within agriculture, forestry and fisheries.

(Revitalization of rural economies)

• Communities will be encouraged to act according to their own decisions made on the basis of past successful cases provided and recommended by the government, and the development of infrastructure necessary for revitalizing rural economies, such as roads and distribution centers, will be promoted. Furthermore, the Direct Payment in Hilly and Mountainous Areas will be implemented, and measures against damage caused by animals will be strengthened through the collaboration of the concerned ministries.

(Promotion of complementarities and interrelationships between urban and rural areas)

• A national campaign will be implemented in collaboration with various organizations to promote complementarities and interrelationships between urban and rural areas. The campaign will include the promotion of measures through the united efforts of all the concerned ministries, the support for the activities of the “Orai-Nippon Council,” and the commendation for successful cases. In addition, the spread of farms