August 24, 2010

Japan aims to expand 2011 agriculture subsidy plan

The Japanese farm ministry plans to provide growers of wheat, soy and some other crops with JPY15,000 (US$177) per 1,000 square metres of farmland from fiscal 2011, as part of the expansion of its subsidiary programme, according to reports.

Rice growers will be eligible for the same amount of support as in fiscal 2010, the first year of the programme aimed at achieving healthy farm management and raising self-sufficiency in food production in Japan, sources said.

The Ministry of Agriculture, Forestry and Fisheries will present the plan to the ruling Democratic Party of Japan's agriculture policy task force on Tuesday (Aug 24) to seek its understanding in order to include it in its budgetary request for fiscal 2011.

The budget for the subsidy programme is expected to increase to JPY650 billion (US$7.68 billion) in fiscal 2011 from JPY560 billion (US$6.62 billion) in fiscal 2010 through March 31, 2011, sources said.

Under the programme, farmers receive subsidies when sales prices of their produce fall below production costs. In addition to wheat and soy, buckwheat and sugar beet are also among the crops to be covered by the programme, starting in fiscal 2011.