Silviase/jgov_v1.4_full_ann huggingface dataset:
• Wastage of Food generated by the food industry reached about 11 million tonnes in FY2005. This large figure suggests the difficulty in controlling the generation of wastage of food. The recycling of wastage of food for producing fertilizer and feed has been promoted, and the recycling ratio for the whole food industry increased to 52% in FY2005. Despite this achievement, the recycling ratio differs widely from sector to sector, ranging from 20% to 80%.

• In the future, the amount of generating wastage of food should be effectively controlled, and sectors which make little effort to reduce waste generation should be encouraged to increase the recycling ratio.

Source: “Statistical Survey on Recycling of Circulating Food Resources,” MAFF Note: $ (\text{Recycling ratio}) = [(\text{Amount of controlled generation}) + (\text{Amount of reuse}) + (\text{Amount of reduction})]/[(\text{Amount of controlled generation}) + (\text{Amount of generation})] \times 100 $ The “Amount of reuse” is defined as the amount of waste used as raw material for fertilizer, feed, fat & fat products, and methane.

• There are attractive markets in East Asia. Unlike the food industry based in western countries, the Japanese food industry is reluctant to expand into overseas markets. If the food industry continues to depend on the domestic market alone, its management basis may be weakened and the function of stable food supply may not be able to be fulfilled.

• According to the “New Agricultural Administration for the 21st Century-2006,” Japan contributes to the development of East Asia by encouraging the food industry to invest overseas, and promote the “East Asia Food Industry Community Plan” which allows mutual growth.

Source: Prepared by MAFF
## Strengthening of Agricultural Physique and Developing of New Frontiers

## Section 1 Present State of Agricultural Economy

## (1) Present State of Agricultural Economy

• The total agricultural output (approximate calculation) in 2005 decreased by 2.6% from the previous year, to 8,488.7 billion yen. The figure has been below 10 trillion yen since 1997. The reduction of the value of the output of rice has affected the total output for these years, except for 2003, when cool-weather damage raised the price.

Transition of the Total Agricultural Output and the Product Specific Contribution to the Change of Output

• The gross farm income of main-business farm households decreased to 5.39 million yen, which indicated a 6.0% decrease compared with the previous year. The income of main-business farm households, which is characterized by a high dependent ratio on agriculture, is easily affected by the change of agricultural income which is vulnerable to climatic damage.

• The debt of main-business farm households is 4.05 million yen. Generally, the debt is to be paid back within a short period (1 year or shorter) and stable money income is needed every year.

(Breakdown of gross income of farm households)

Source: "Agricultural Management Statistical Survey (Management Statistics by Business Type)" MAFF

Notes: 1) (Dependent ratio on agriculture)=(Agricultural income)/[(Agricultural income)+(Non-agricultural income)]× 100

2) (Short-term debt ratio)=[(Short-term loan)+(Account payable)]/[(Long-term loan)+(Short-term loan)+(Account payable)]×100
## (2) Trends of Households Engaged in Farming and New Farmers

• The number of farm households is continuously decreasing. The numbers of main-business farm households and semi-business farm households in 2005 have decreased by 40% compared with the figures obtained 10 years before.

• Regarding the number of key agricultural workers, the margin of decrease has been falling since 1995. The percentage of these core persons 65 years old and over has nearly tripled (57%) in 2005, compared with the figure 20 years before (20%).

## I nterannual Changes in the Number of Commercial Farm Households (Nationwide data)

Trends of the Numbers of Farm Household Members, Population Mainly Engaged in Farming, and Key Agricultural Workers (Commercial farm households)

Source: “Agriculture and Forestry Census” MAFF
• Although the number of the new farmers is increasing, of 80 thousand new farmers, those 60 years old and over account for 50%. The number of the young new farmers 39 years old and younger is about 12 thousand.

• Before starting to work as farmers, they save their own money and usually use the financial aid programs. The new farmers try to find their farmlands by themselves, although the percentage of the new farmers who ask the agricultural committees to find suitable farmlands is high.

- It is important to secure a sufficient agricultural labor force with a large variety of skills, and to encourage young people and baby boomers to participate in farming in the future. Detailed support should be provided, from the initial stage to the stage of settlement, for the new farmers who have no previous experience, to facilitate their adaptation to their new environment.

Interannual Changes in Age Distribution of the New Farmers

Source: “Agricultural Structure Census” MAFF

Notes: 1) The new farmers include those whose employment status is changed from "student" to "mainly farming" (those who become farmers immediately after graduation), and those whose employment status is changed from "office worker" to "mainly farming" (those who switch to farming from other professions). [In the latter case, whether they belong to a home business or go back to their hometown for farming (U-turn) is not considered.]

2) The 2005 numerical data were obtained by reclassification counting according to the “Agriculture and Forestry Census” (2005) and the “Agricultural Structure Census” (2006).

How the New Farmers Secured Their Financial Resources and Farm Lands

A. Personal resources

B. Financial aid programs

(Fund to promote the participation of youth in farming)

C. Funds from the agricultural cooperative system

D. Commercial funds (Cooperative banks included)

E. Other funds

Source: “Survey on the Newly Engaged in Agriculture, Forestry and Fisheries” (published by MAFF in February 2004).

Notes: 1) A questionnaire survey was conducted on the new farmers during the period from June 2002 to May 2003 (total responses: 3,625). Of these respondents, 402 persons who were classified as those responsible for management of or members of newly established sectors were selected as subjects.

2) “The new farmers” are defined as those who had no experience of farming, those who had experience of farming in the form of a side-business, and those who were not regularly employed. They are supposed to have started participating in farming to gain a regular income for one year prior to the survey, and work on a regular basis. Their ages ranged from 15 to 64 years at the time of the survey.
## (3) Promotion of Participation of Female Farmers

• Female farmers, who account for 45.8% of the key agricultural farmers, play an important role in agriculture. The proportion of female farmers among the certified farmers and the members of the agriculture committees is still low.

• A Family Business Agreement defines the roles and working conditions of family members in farm management. Half of the agreements are applied to the responsible persons of farm management and the relationship between husband and wife as partners of farming.

• Most of the defined contents are related to farm management and the improvement of the working environment. Each farmer is expected to fully understand the contents of the Family Business Agreement, and its necessity should be carefully considered.

• The female farmers who receive salaries account for 50%. Their roles should be appropriately evaluated to promote their participation.

Number of Certified Female Farmers

Number of key agricultural workers (1,000 persons)	Number of certified farmers (persons)	Number of members of the agriculture committees (persons)
Number of female key agricultural workers (1,000 persons, %)	Number of certified female farmers (persons, %)	Number of female members of the agriculture committees (persons, %)
2,241	1,027 (45.8)	200,842	4,896 (2.4)	45,379	1,879 (4.1)

Source: “Agricultural and Forestry Census” MAFF. Investigated by MAFF

Notes: 1) The data on certified farmers were obtained in 2006 and the remaining data were obtained in 2005.

2) The number of “certified female farmers” includes females who independently applied for the plan for improving agricultural management and couples who submitted joint applications.

Defined Contents of the Family Business Agreement (2006)

Awareness of Family Business Agreement

A Family Business Agreement should be worked out although there may be some problems to be solved. Because family members can discuss various issues, working out a Family Business Agreement is not necessary.

Source: “Survey on the Farmers’ Intentions of Gender Equality” (published by MAFF in March 2005).

Note: The survey was conducted on 3,000 female farmers around Japan and their 3000 spouses [retrieval rate: 50.3% (females), 50.0% (males)].
## Section 2 Initiatives to Foster and Secure Principal Farmers

## (1) Trends of Principal Farmers

• The number of certified farmers is increasing and the number of management bodies reached about 220 thousand as of the end of December 2006. According to the farming type classification, the total percentage of quasi-monoculture mixed farming and mixed farming has been increasing.

• Regarding farm households without certified farmers, the area of cultivated land under management and the number of farm households are decreasing. In the case of farm households with certified farmers, these figures are increasing, which suggests the progress of concentration of management resources.

• The number of village farming collectives, which remained roughly flat from 2000 to 2005, increased by about 2 thousand, up to about 12 thousand for the period from 2005 to 2007. The establishment of village farming collectives has contributed to an increase in income and a reduction in working hours.

Transition of the Number of Certified Farmers and the Composition Ratio According to Farming Type (Composition ratio according to farming type)

(Number of certified farmers)

Source: Investigated by MAFF

Note: The numerical data were the figures as of the end of March each year.

Trends of the Cultivated Land under Management and the Number of Farm Households According to the Presence or Absence of Certified Farmers

(Units: 1,000 ha, 1,000 households, %)

Cultivated Land area under Management	Number of farm households
2000	2005	Rate of change (increase or decrease)	2000	2005	Rate of change (increase/decrease)
Commercial farm households with certified farmers	Paddy field	127.4	180.4	42	22.7	28.1	24
Dry field	12.1	16.0	32	6.5	8.1	25
Commercial farm households without certified farmers	Paddy field	1,159.4	936.1	-19	1,147.1	880.7	-23
Dry field	54.2	44.3	-18	75.4	58.4	-23

Source: "Agriculture and Forestry Census" (reclassification counting), MAFF.

Comparison of Agricultural Income per Farm Household (2005, paddy field farming)

Source: "Management Statistics by Farming Type: Organized Management" MAFF
- The number of farm households newly included in the group of households with 5.0 ha of farmland or more during the period from 1995 to 2000 was nearly the same as that during the period from 1990 to 1995. The number, however, increased during the period from 2000 to 2005. The number of farm households excluded from the group of households with 5.0 ha of farmland or more has been increasing, and the difference between their number and the number of the households newly included in the group of households with 5.0 ha of farmland or more has fallen. As a result, the increase in the number of the households with 5.0 ha of farmland or more is slowing.

Dynamics of Farm Households with 5.0 ha of Farmland or More (1990-2005, excluded the data of Hokkaido)

Source: “Agriculture and Forestry Census” MAFF Note: The numbers of households newly included or excluded from the groups during the period from 2000 to 2005 were approximate values

• In the case of rice single-crop farming, the break-even point ratio (which is the index indicating the profitability and stability of farming management, a lower ratio representing excellent profitability and stability) decreases with the increase in the farming scale. The large scale farming group makes more profits more efficiently.

Break-even Point Ratio of Rice Single-crop Farming (Data Based on the Scale of Total Planted Area of Paddy Fields) (2005, excluded the data of Hokkaido)

Note: The numerical data derived from the rice single-crop farming were used for estimation.
## (2) Trend of Abandoned Cultivated Land and Promotion of Concentration of Farmland Use by the Principal Farmers

• The cultivated land area was 4,670 thousand ha in 2006, which indicated a continuously decreasing tendency. The abandoned cultivated land area was 386 thousand ha in 2005, or 5.7 times the size of Lake Biwa, and accounted for 8% of the cultivated land area. According to the classification of farm households, the percentages of non-farm households having cultivated land and noncommercial farm households have increased.

• The projects for utilizing abandoned cultivated land have been promoted by encouraging companies to participate in agriculture and improving the infrastructure.

• Acceleration of the concentration of farmland towards the principal farmers should be promoted. Superior farmland should be secured and the generation of abandoned cultivated land should be prevented. In order to solve these problems, more study is needed to revise the farmland policies.

Transition of the Percentages of Abandoned Cultivated Land Area by Farm Household Type

Transition of the Cultivated Land Area to Be Cultivated and the Abandoned Cultivated Land Area by Farm Household Type (Nationwide data)

Source: “Agriculture and Forestry Census” (MAFF)

Note: The data on non-farm households having cultivated land were expressed as the proportions of the abandoned cultivated land area to the cultivated land lent to others.

• There is an increasing tendency of concentration of farmland towards the principal farmers, which is characterized by the fact that the percentage of land-use right creation exceeds that of land transfer. This tendency should be further accelerated.

• As of March 2007, two hundred and six corporations from non-agricultural sectors have started to engage in agriculture. They rent a total of 596 ha of farmland, which contributed to promotion of the utilization of abandoned cultivated land and prevention of the abandonment of cultivated land. The farmland that satisfies the companies' demands should be secured and provided. In this manner, more companies are encouraged to participate in agriculture.

Area of the Farmland Rented by New Agricultural Corporations

Originally Established in Non-agricultural Sectors and Their Future Intentions
## (3) Programs of Direct Payment for Land-extensive Farming

• The farmers who were to sow wheat and barley in fall, from September to November 2006, were asked to apply for participation in this project so that the introduction of the project could be in time for the harvesting of the crops in 2007. A total of 27,700 management bodies applied for participation. Even at the time of application in fall 2006, the planned planted area reached 243,885 ha, which accounted for 90% of the planted area of four types of wheat and barley in 2006.

• Each region promotes to organize village farming collectives so that the Direct Payment for Land-extensive Farming can be introduced smoothly.

Source: Prepared by MAFF

In the northeast region of Kakogawa City, Hyogo Pref., farming associations were organized, in each rural community, to promote the shared use of farm machinery. The six rural communities, which have faced the problems of aging populations and the lack of principal farmers, have decided to promote the sustainable development of local farming and the improvement of management efficiency. Under the expert supervision of the local extension office, the farming associations were integrated into a single agricultural producer's co-operative corporation. About one third of all the paddy fields in the village were concentrated in the corporation and various crops including rice, barley and soybeans are cultivated in about

Large scale cultivation of barley

100 ha of farmland. The three operators control the farming system and the operational efficiency of farm machinery has been remarkably improved. The cooperation runs farm restaurants and food-processing factories where boxed meals are cooked and Japanese and western cakes and cookie are baked. Moreover, various projects have been promoted by the corporation. For example, young people who completed the operator training program are given the opportunity of employment in the corporation.

The Direct Payment for Land-extensive Farming has been introduced in this corporation. In the future, the corporation is expected to promote programs for the improvement of the safety of farming and the innovation of farming technology, and overcome the problem of labor shortage resulting from the expansion of the contract area.
## (4) Rice Policy Reform, Production of Main Crops, and Related Policies

• From a view point of consumers- and market-orientation, the desirable rice farming should be realized by FY2010 through the promotion of rice farming that responds to consumer demand.

• A new supply-demand adjustment system led by farmers and farmers’ organizations is to be adopted so that it can be applied to the rice to be harvested in 2007.

• In the future, principal farmers should be fostered and secured and the appropriate programs for adjustment of production should be introduced quickly. Furthermore, in consideration of the needs of food service industry and home-meal replacement industry, rice production that responds to consumer demand should be promoted. From a perspective of improving the food self-sufficiency ratio, it is important to promote the initiatives on increasing rice consumption through the promotion of “Shokuiku.”

• Review of the wheat and barley policy should be promoted steadily. Wheat and barley should be produced in line with demand by improving productivity and quality.

• Constant production of soybeans should be assured, and the production cost should be reduced. For these purposes, new varieties should be introduced and stable supply and demand relationship should be established between producers and actual users. In this manner, the production areas are expected to be reformed.

Source: Prepared by MAFF

Transition and Detail of the Demand for Rice as Staple Food

Unit: 10 thousand tonnes

Source: Estimated by MAFF according to “Household Survey” (Ministry of Internal Affairs and Communications), “Food Balance Sheet” and “Survey of the Amount of Rice in Hand of Producers” (MAFF)

Notes: 1) The amount demanded is the net food supply (for staple food) expressed in terms of brown rice.

2) Household consumption is calculated by multiplying the purchase per member of family consisting of more than two persons (agriculture, forestry and fishery households excluded) which is expressed in terms of brown rice by total population.

3) Voluntary transfer is the amount of rice given by farmers to their relatives.

4) Consumption by food service industry and home-meal replacement industry is obtained by subtracting the total of household consumption, farmers' consumption and voluntary transfer from the amount demanded. Rice used for processing is included in this category.
## Section 3 Initiatives for Reducing Food Supply Cost

• In order to strengthen the agricultural physique, problems related to the process from food production to food distribution should be solved, and the food supply cost should be reduced.

• According to “New Agricultural Administration for the 21st Century -2006” the food supply cost is to be reduced by 20% within five years. In order to achieve this target reduction, various programs formulated in line with the “Action Plan for the Reduction of Food Supply Cost” (established in September 2006) should be promoted steadily.

Composition of Food Supply Costs and Relationship with Action Plan

Retail costLabor cost, shipping cost	Reduction of distribution cost by reform of wholesale market and improvement of efficiency of commodity distribution• Promotion of reform of wholesale market• Improvement of efficiency of commodity distribution• Formation of various distribution channels	Promotion of reform of economic projects by agricultural cooperatives leading to reduction of production cost and distribution cost	Reduction of costs by efficiently coping with the consumers' needs, with respect to the quality and form of products• Promotion of shipment and distribution of products which meet the standards reflecting the needs of the various sectors, such as distributors of fresh products, processors and the food service industry.• Strengthening the collaborations between the food industry and agriculture
Cost of collection and shipmentSelling chargesCooperative charges	Reduction of cost of collection and shipment	Reduction of cost of distribution of agricultural products
Material costFarm machinery, fertilizer, rent, usage charge of joint-use facilities	Reduction of production costs by supply and efficient use of inexpensive materials• Supply of inexpensive materials• Rationalization of distribution of production materials• Efficient use of production materials• Reduction of usage charge of joint-use facilities• Reduction of work hours• Improvement and stabilization of yield	Reduction of production material costs
Labor cost	Reduction of production costs by expansion of management scale and technical development• Expansion of management scale• Efficient use of farmland• Laborsaving improvement by development of new technology

• In the case of paddy field farming and the outdoor culture of vegetables, such as cabbages, the agricultural production costs consist of costs of production materials, such as fertilizers, agricultural chemicals, and farm machinery (20-30%) and labor costs (30-50%). The retail price of fresh food consists of the cost of collection and shipment, the wholesale cost, and the retail cost. The proportion of such distribution costs to the retail price is 30% in the case of rice and 50% in the case of cabbage.

Composition of Agricultural Production Costs

Source: Estimated by MAFF

Composition of Retail Price of Fresh Food

Source: Estimated by MAFF