While the demand for main food rice is declining, the Ministry of Agriculture, Forestry and Fisheries is subsidizing to encourage producers to switch to rice that can be used as feed for livestock, while larger farmers are the ratio of subsidies to their profits. According to a survey by the Ministry of Finance, it tends to be high.
The Treasury has pointed out that it may be necessary to switch to more profitable crops.
In response to the declining demand for rice for main food due to changes in eating habits and the declining birthrate and aging population, the Ministry of Agriculture, Forestry and Fisheries has decided to use rice for livestock feed and rice for "rice flour". We have a system to provide subsidies when the planting is switched.
When the Ministry of Finance investigated the impact of this system on agricultural management, it was found that the larger the farmer, the higher the ratio of subsidies to profits.
Specifically, subsidies account for 6.9% of profits for farmers with 1 to 2 hectares of paddy fields, while they increase to 23.5% for farmers with 10 to 15 hectares, and profits for farmers with 30 hectares or more. The result is that subsidies account for 34.8% of the total.
The Ministry of Finance has pointed out that it may be necessary to replace agricultural operations with more profitable crops such as rice, vegetables and fruits for export so as not to rely on so-called "subsidies". ..
A budget of 305 billion yen has been budgeted for the system that encourages crop changes this year, and the Ministry of Finance plans to discuss with the Ministry of Agriculture, Forestry and Fisheries what the system should be in preparation for the next fiscal year's budget.