Fill in the blanks: Japan turns to corporate farm ownership as it faces looming abandonment crisis

The scene that a farmer's woman harvest  TOMATO, and a  businessman has a meeting with farmer's woman with a smile. and Farm Landscape.
Japan is calling for more acceptance of corporations owning farmland as they risk abandonment with an ageing agricultural workforce. (Getty Images)

Japan is calling for more acceptance of corporations owning farmland as they risk abandonment with an ageing agricultural workforce

Shinjirō Koizumi, Minister of Agriculture, Forestry and Fisheries, shared this perspective with members of the press during a press conference held on June 17.

“I believe that there will definitely be fewer people to take on farmland in the future… in five- or ten-years’ time, many areas will be left blank in regional plans. In other words, there will be no one to take on those areas,” Koizumi said, citing a report from the Japan Agricultural Cooperative Association.

Koizumi was questioned over his previous comments saying that companies should own 49% of farmland.

Japan has strict regulations on farmland ownership to protect agricultural land. This meant only individuals or entities directly involved in farming could own farmland.

However, these rules have been gradually relaxed to allow more corporate involvement.

Koizumi said that while there was resistance to companies owning farmland in the past, Japan’s agriculture sector will need these players very soon.

“At that time, it will be absolutely unacceptable to continue to talk about corporations as the bad guys. Rather, is it better to leave the farmland abandoned and have no one manage it, or is it better to get new players involved who are more proactive than before, so that we can utilise the farmland in the future, and maintain and protect it? I believe that a time will come in the future when we will be forced to make such a choice,” he said.

For the next generation

With Japan’s rapidly ageing population, the future for the agriculture industry will be at risk unless it’s revitalised with new blood.

Koizumi said corporate players could play a key role by attracting young talent to the agriculture industry.

Crucially, corporate companies could offer young people stability and better work-life balance, which are rarely found in traditional farming work.

“When people still want to go into agriculture, some are looking at agricultural corporations. These are agricultural corporations owned by large companies, and although they do not make a profit in a single year, they can farm stably, and employees can have two days off per week, so that they can continue to operate as farmers,” said Koizumi.

He continued: “If we do not increase these types of companies, I do not think that there will be people who will take on the role... and unless there are more places like this, I think it is unrealistic to think about the future only with the current players.”

Koizumi stressed the need for open and inclusive dialogue about agriculture-related challenges and reforms.

At the moment, he sees an urgent need to consolidate farmland into larger plots, which will streamline operations and productivity.

“What is important from now on is how to speed up the consolidation of farmland and the division into larger plots when it comes to the transformation of the concentrated structure.”

Koizumi noted that the government has proposed the creation of agriculture complexes and emphasised that they needed to be informed by the real needs of farmers.

He encouraged stakeholders to express their views to help the government shape its policies.

Lastly, Koizumi said he wanted to have “wide-ranging discussions’ such as making expensive agricultural machinery more affordable and how to expand agricultural exports.