One reason for this is the claim that joint-stock companies would purchase farmland in expectation of converting it into industrial or residential use. They would not, the reasoning goes, use the land for raising crops, but would simply leave it to rot. Such concern arises from circumstances peculiar to Japan, where land is scarce and land prices are abnormally high in comparison with other countries. However, following the bubble's collapse, the myth of constantly rising land prices was finally put to rest. The Japanese economy is now struggling to recover from its extended recession by deregulation.
Agriculture is one target of deregulation.
However, no need exists to limit agricultural management to family farms. Joint-stock companies should be invited to promote the development and formation of efficient and invigorated management groups. However, the closed nature of the farming community in Japan is hindering that development, and is strongly related to the existence of agricultural cooperatives, Nokyo being the prime example. There are virtually no exceptions. Nokyo is engaged in all sorts of businesses related to farming and farming families, including financing, crop sales, purchases of production supplies and materials, and insurance schemes.