Agricultural Policy Monitoring and Evaluation 2025

17. Japan

Main findings

Support to agriculture

Japan has gradually reduced its agricultural support over the past decades. The Producer Support Estimate (PSE), expressed as a share of gross farm receipts, declined to 32% in 2022–24, down from 60% two decades earlier but still more than twice the OECD average.

Market Price Support (MPS) is the main element of Japan’s agricultural support and is generated by border measures, including tariffs and tariff rate quotas (TRQs). In recent years, MPS has seen a slightly increasing trend as gaps between domestic and border prices have widened particularly for rice and milk, for which producer prices have risen while border prices have declined. On average, producer prices have been 36% higher than border reference prices in 2022-24.

Budgetary support to producers consists mostly of payments based on area, income, or output. Due to the high level of MPS, potentially most distorting forms of support, which also include payments based on output and on the unconstrained use of variable inputs, represented 78% of all producer support in 2022‑24, down from 93% in 2000-02 but well above the OECD average.

General services to the agricultural sector (General Services Support Estimate, GSSE) accounted for 26% of Japan’s total agricultural support in 2022–24. In relation to the sector size, GSSE equalled nearly 13% of the agricultural value of production – a level above the OECD average, though lower than in the 2000s. Over 83% of GSSE expenditures were directed to the development and maintenance of agricultural infrastructure, especially irrigation, while 10% supported the agricultural knowledge and innovation system.

The Total Support Estimate (TSE) for the agricultural sector amounted to 0.8% of Japan’s Gross Domestic Product (GDP) in 2022–24, down from 1.2% at the beginning of the century.

Key recent policy changes

In 2024, Japan’s Basic Act on Food, Agriculture, and Rural Areas, the foundational legal framework for Japan’s agricultural policies, was revised to address significant changes in agriculture since its enactment in 1999. These changes include increased risks to the global food supply chain, the growing need to address environmental challenges, and the expansion of global markets for agricultural products. The revision strengthens food security as a core principle, expanding its focus beyond food supply to ensuring stable access to high-quality food at reasonable prices. It also emphasises sustainable agriculture and maintaining rural communities.

The Plan for Global Warming Countermeasures was revised in February 2025 to align with Japan’s commitment to achieving carbon neutrality by 2050. The revised plan sets new reduction targets, aiming to reduce greenhouse gas (GHG) emissions by 60% by 2035 and 73% by 2040 compared to 2013. It also outlines measures and policies to achieve these targets by accelerating energy transition, investment, and innovation towards decarbonisation.

The Act on Promoting the Utilization of Smart Agricultural Technology was enacted in 2024 to boost agricultural productivity and sustainability in Japan. It aims to address labour shortages and improve resource efficiency through financial incentives and special exceptions for farmers, co-operatives, and research institutions to invest in smart technologies, precision farming, and data-driven agriculture

Assessment and recommendations

• By revising its Basic Act on Food, Agriculture, and Rural Areas, the foundational legal framework for its agricultural policy for the last quarter century, Japan puts new emphasis on the stable availability of high-quality and sustainably produced food at reasonable prices, on equitable food access for all individuals, and on resilient of rural communities, well beyond the traditional focus on “ensuring food supply”. However, concrete policy measures remain to be defined to support this policy, and stronger structural reforms of agricultural markets appear needed to be consistent with these objectives.

• Japan is taking some steps to improve the sustainability of its imports with government initiatives such as “Enhancing Linkages between Private Sector and Small-scale Producers (ELPS)”, directed towards production processes in developing countries. However, the current number of application cases remains limited. This initiative should be scaled up and expanded to other countries to ensure environmental and social sustainability throughout the supply chain and to foster the transition to sustainable production methods in trade partner countries.

• The level of support to producers in Japan remains high compared to the OECD average. In particular support to individual commodities, notably including price support, hinders farmers’ capacity to adjust their production to changing climatic and market conditions, and may add to local environmental pressures. Price support also increases consumers’ cost of living. Further policy reforms should be considered to improve the sector’s contributions to key policy goals.

• The government should encourage farmers to adopt climate-smart practices, crop diversification, and sustainable land-management techniques through targeted support programmes and financial incentives. In particular, considering that the share of budgetary support allocated to general services such as agricultural innovation and technology transfer remains relatively low within the GSSE, a greater portion of public funding could be reoriented toward these areas to support long-term productivity and sustainability.

• Japan enacted new laws to promote research and development and the implementation of digital technologies, while pursuing various innovations to reduce GHG emissions and improve nutrient management (BNI wheat). The country currently devotes 1.3% of its agricultural production value to agricultural knowledge and innovation, slightly more than the OECD average, but well below the top tier, and these investments only represent 10% of the GSSE. Investment could be boosted on innovation, and more efforts could also support technical assistance, training, and capacity building for farmers to become more resilient and improve their sustainability performance.

Development of support to agriculture

Table 17.1. Japan: Estimates of support to agriculture

Million USD

	1986-88	2000-02	2022-24	2022	2023	2024p
Total value of production (at farm gate)	72 761	76 338	65 421	68 450	67 611	60 202
of which: share of MPS commodities (%)	68.36	63.81	67.96	67.30	68.77	67.82
Total value of consumption (at farm gate)	94 316	107 458	94 630	98 226	96 246	89 416
Producer Support Estimate (PSE)	44 607	43 955	22 949	22 697	22 691	23 459
Support based on commodity output	40 992	40 830	17 453	16 349	17 018	18 993
Market price support¹	39 454	38 473	15 793	14 783	15 540	17 056
Positive market price support	39 454	38 473	15 793	14 783	15 540	17 056
Negative market price support	0	0	0	0	0	0
Payments based on output	1 539	2 357	1 661	1 567	1 478	1 937
Payments based on input use	1 434	976	1 245	1 796	1 279	659
Based on variable input use	403	85	471	955	431	26
with input constraints	403	85	0	0	0	0
Based on fixed capital formation	890	724	532	633	562	401
with input constraints	403	85	0	0	0	0
Based on on-farm services	142	167	242	208	286	233
with input constraints	0	0	0	0	0	0
Payments based on current A/An/R/I, production required	621	613	1 670	1 917	1 674	1 419
Based on Receipts / Income	0	0	299	347	323	226
Based on Area planted / Animal numbers	621	613	1 371	1 569	1 352	1 192
With input constraints	0	0	1 070	1 198	1 089	924
Payments based on non-current A/An/R/I, production required	0	0	0	0	0	0
Payments based on non-current A/An/R/I, production not required	1 560	1 537	2 580	2 634	2 718	2 388
With variable payment rates	0	0	0	0	0	0
with commodity exceptions	0	0	0	0	0	0
With fixed payment rates	1 560	1 537	2 580	2 634	2 718	2 388
with commodity exceptions	1 560	1 257	2 394	2 436	2 532	2 216
Payments based on non-commodity criteria	0	0	1	1	3	0
Based on long-term resource retirement	0	0	1	1	3	0
Based on a specific non-commodity output	0	0	0	0	0	0
Based on other non-commodity criteria	0	0	0	0	0	0
Miscellaneous payments	0	0	0	0	0	0
Percentage PSE (%)	57.42	53.62	31.75	29.72	30.35	35.22
Producer NPC (coeff.)	2.24	2.07	1.36	1.31	1.34	1.45
Producer NAC (coeff.)	2.35	2.16	1.47	1.42	1.44	1.54
General Services Support Estimate (GSSE)	8 768	12 138	8 301	9 430	8 110	7 362
Agricultural knowledge and innovation system	514	861	836	882	799	828
Inspection and control	55	66	91	82	100	89
Development and maintenance of infrastructure	7 746	10 618	6 843	7 374	6 938	6 218
Marketing and promotion	152	248	435	994	180	132
Cost of public stockholding	301	345	96	98	93	96
Miscellaneous	0	0	0	0	0	0
Percentage GSSE (% of TSE)	16.29	21.66	26.43	29.35	26.33	23.88
Consumer Support Estimate (CSE)	-53 520	-49 478	-22 817	-21 564	-22 965	-23 922
Transfers to producers from consumers	-38 961	-38 462	-16 143	-15 172	-15 867	-17 388
Other transfers from consumers	-14 519	-11 102	-7 026	-6 749	-7 406	-6 924
Transfers to consumers from taxpayers	-108	35	4	4	4	4
Excess feed cost	68	51	348	352	305	387
Percentage CSE (%)	-56.81	-46.00	-24.23	-21.95	-23.86	-26.75
Consumer NPC (coeff.)	2.32	1.85	1.33	1.29	1.32	1.37
Consumer NAC (coeff.)	2.32	1.85	1.32	1.28	1.31	1.37
Total Support Estimate (TSE)	53 267	56 128	31 253	32 131	30 805	30 825
Transfers from consumers	53 480	49 563	23 169	21 921	23 273	24 313
Transfers from taxpayers	14 307	17 666	15 111	16 959	14 938	13 436
Budget revenues	-14 519	-11 102	-7 026	-6 749	-7 406	-6 924
Percentage TSE (% of GDP)	2.06	1.24	0.75	0.75	0.73	0.77
Total Budgetary Support Estimate (TBSE)	13 813	17 655	15 461	17 349	15 264	13 769
Percentage TBSE (% of GDP)	0.53	0.39	0.37	0.41	0.36	0.34
GDP deflator (1986-88 = 100)	100	105	101	98	102	105
Exchange rate (national currency per USD)	147.10	118.23	141.12	131.50	140.49	151.37

Note: p: provisional. NPC: Nominal Protection Coefficient. NAC: Nominal Assistance Coefficient. A/An/R/I: Area planted/Animal numbers/Receipts/Income. 1. Market Price Support (MPS) is net of producer levies and excess feed cost. MPS commodities for Japan are: wheat, barley, soybean, rice, sugar, milk, beef and veal, pig meat, poultry, eggs, apples, cabbage, cucumbers, grapes, mandarins, pears, spinach, strawberries and Welsh onions.

Source: OECD (2025), “Producer and Consumer Support Estimates”, OECD Agricultural policy monitoring (database), https://data-explorer.oecd.org/.

Policy landscape

Main policy instruments

Legal and strategic frameworks

The Basic Plan for Food, Agriculture and Rural Areas revised in 2020 (hereafter “the 2020 Basic Plan”) sets Japan’s agricultural policy direction for the next decade. It aims to ensure a stable food supply and improved food self-sufficiency and continues agricultural policy reforms both to make the sector competitive and manage issues facing the sector, while putting an increased emphasis on rural communities, smart agriculture and digitalisation, and risk management. The plan was revised in April 2025 in response to the new Basic Act on Food, Agriculture, and Rural Areas.

The MIDORI Strategy for Sustainable Food Systems (hereafter the MIDORI Strategy), formulated in May 2021, defines the path to transform Japan’s food systems and increase the agriculture and food systems’ sustainability and productivity potential by 2050. This strategy involves: 1) enhancing engagement of stakeholders at each stage of food supply chains; and 2) promoting innovation to reduce environmental burden. It sets 14 Key Performance Indicators (KPIs) to be achieved by 2050 through promoting the development and implementation of innovative technologies and production systems as well as enhancing efforts at each stage of inputs, production, processing and distribution, and consumption. More specifically, the agriculture-related KPIs include:

• zero CO₂ emission from fossil fuels combustion in the agriculture, forestry and fisheries sectors

• 50% reduction in risk-weighted use of chemical pesticides

• 30% reduction in chemical fertiliser use

• increase of organic farming area to 1 million ha (equivalent to 25% of farmland)

• at least 30% improvement of labour productivity in food production, including through automation (by 2030)

• sustainable sourcing for import materials (by 2030).

Domestic farm support programmes

Japan maintains a system of border protection and domestic price support for key agricultural products. Average tariffs on agricultural products were 12.2% in 2023, compared to 2.4% for non-agricultural products. However, agricultural tariffs vary considerably. More than 35% of tariff lines are duty-free, but 2.0% of them are above 100% (ad valorem equivalent), while 13.1% of agricultural tariff lines have non-ad valorem tariffs (WTO, 2024[1]). Tariff rate quotas (TRQs) with high out-of-quota tariffs apply to some commodities, such as starch and dairy products.

Rice imports are managed by a state trading enterprise, fulfilling Japan’s minimum-access commitment under the WTO Agreement on Agriculture. A TRQ of 682 200 tonnes (milled) applies. The maximum mark-up (collected by the government when importing and selling on domestic markets) for rice imports is set at JPY 292 (USD 2.1) per kg, and the out-of-quota tariff-rate is JPY 341 (USD 2.4) per kg.

A revenue-based payment is available for farmers meeting certain requirements who produce rice, wheat, barley, soybeans, sugar beets or starch potatoes. The payment covers 90% of the difference between current revenue and a benchmark based on the Olympic average of income (average of the most recent five years excluding the highest and lowest values) with the cost shared between the government (75%) and the farmers’ reserve fund (25%).

There is a direct support payment for upland crops such as wheat, barley, soybean, sugar beet, starch potato, buckwheat and rapeseed based on both area and output. The area-based part is based on current planting, and the output-based part is paid according to the volume and quality of sales.

A crop diversification payment is provided to farmers who switch their use of paddy fields from table rice production to other crops (wheat, soybeans, or rice for feed and processing). This payment is area-based, but output is also considered for rice for feed and flour. Within this crop diversification programme, a payment is also provided to municipal governments where high-yield feed rice and processing is located, or the cultivates buckwheat or rapeseed.

The Livestock Stabilisation Programme, known as Marukin, provides support payments to beef cattle and hog producers when the standard sales price falls below the standard production cost. Ninety per cent of the difference between costs and sales prices are paid to producers, to which the government contributes 75% and the rest are provided by the producers’ reserve fund. Apart from the Marukin, output-based payments go to producers of raw milk used for dairy processing.

Farmers have the option to choose between two insurance programmes: the agricultural mutual relief programme and the revenue insurance programme. They must select one of these programmes to avoid receiving overlapping benefits. Agricultural mutual relief is a form of commodity insurance that is voluntary and available for a range of commodities (rice, wheat, barley, livestock, fruit, and other field crops) and horticultural facilities. It covers yield losses, damage to facilities from pests and natural disasters, losses caused by death or culling of livestock and veterinary expenses. Crop quality losses are also insured for some agricultural products including rice, wheat, barley, and fruit. Government support covers around 50% of the insurance premium.

The revenue insurance programme compensates for the loss of farm revenue stemming from both market and natural events, relative to a benchmark based on the previous five years’ revenues. The government supports 50% of the insurance premium and funds 75% of the reserve fund.

Financial support is provided to young farmers (under 50 years old) during a training period and initial operation period. Annual subsidies are also available for agricultural management entities to employ and train young farmers.

The Agricultural Land Act authorises Agricultural Committees in municipalities to manage agricultural land use. Purchasing, selling and leasing of agricultural land need to be permitted by the Committee. In 2014, Farmland Banks were established in all prefectures to promote accumulation and consolidation of agricultural land. The farmland banks lease dispersed and dislocated land, combine this land into larger plots, and then reallocate it to business farmers. In cases where the farmland banks lend out agricultural land to business farmers, they improve agricultural land conditions and infrastructure (expansion of plots, investment in drainage equipment, etc.) as necessary. The government provides financial support to regions that lease agricultural land to the farmland banks and co-operate in accumulating and consolidating agricultural land to business farmers. In addition, the “Act on Promotion of Improvement of Agricultural Management Foundation” was revised in April 2023. Under the act, municipalities formulate a “Regional Plan” through discussions among farmers and local residents. This plan can be a blueprint for regional agriculture that clarifies the future use of farmland and helps the process of its accumulation and consolidation.

Public investment in rural and agricultural infrastructure is a core agricultural policy, including agricultural roads, dams and irrigation and drainage facilities. The average annual expenditure of general services support estimate for infrastructure among 2022-24 is JPY 961.9 billion (USD 6 354.3 million). The government also invests in natural disaster preparedness and restoring farm infrastructure, as well as constructing public health and recreational facilities associated with agriculture.

About 40% of total agricultural land and total agricultural output are in hilly and mountainous areas. Area-based direct payments go to farmers in these areas to compensate for the physical disadvantages of these locations for agricultural production to prevent this land from being abandoned. Other payments are available to support collective engagement of local stakeholders in maintaining the multifunctional roles of agriculture.

Japan has defined an agricultural greenhouse gas (GHG) emissions reduction target of 49.5 MtCO₂eq by 2030, compared to 2013 levels, which represents a reduction of approximately 3.5%. GHG mitigation efforts in agriculture are conducted mostly via support payments, grants, credits or non-financial services. For instance, direct payments for environmentally friendly agriculture are provided to farmers who conduct GHG mitigation activities, such as applying compost and extending midseason drainage in paddy field. These activities must be in conjunction with synthetic fertilisers and pesticides use that is less than half of that of conventional farming practices in the region. The government provides investment support for farmers using climate-smart technologies such as renewable energy and biomass-based greenhouse heating systems in horticulture.

Trade policies

Japan is currently a party to 20 Economic Partnership Agreements (EPAs) and other trade agreements, including with Singapore, Mexico, Malaysia, Chile, Thailand, Indonesia, Brunei Darussalam, the Association of Southeast Asian Nations (ASEAN), the Philippines, Switzerland, Viet Nam, India, Peru, Australia, Mongolia, the European Union, the United States, the United Kingdom, as well as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Regional Comprehensive Economic Partnership (RCEP). In addition, Japan is engaged in EPA negotiations with Colombia, Türkiye, Bangladesh, United Arab Emirates (UAE), and the Gulf Cooperation Council (GCC), as well as in negotiations for the plurilateral free trade agreement with the People’s Republic of China (hereafter “China”) and Korea.

Policies for trade and sustainability in agro-food markets

The “Enhanced Linkages between Private sector and Small-scale producers (ELPS)” initiative was launched in collaboration with the International Fund for Agricultural Development (IFAD) during the G7 Miyazaki Agriculture Ministers’ Meeting in April 2023. This initiative aims to strengthen the supply chain by supporting environmental sustainability, improving agricultural productivity, and enhancing quality in exporting countries. For example, as part of this initiative , the sustainable coffee production project has been launched to support nine farmer organisations in southwestern Tanzania in September 2024. By promoting environmental sustainability and improving the productivity and quality of coffee production, the project seeks to enhance the livelihoods of small-scale coffee producers. Helping exporting countries adopt more sustainable practices improves the sustainability of imported commodities.

Several of Japan’s Trade Agreements and Economic Partnership agreements include provisions related to the sustainability of traded agricultural products, including the exchange of best practices regarding sustainable agriculture, as well as the use of technology and innovation (Frezal and Deuss, 2025[2]). These agreements implement provisions on specific implementation mechanisms. For example, the Joint Dialogue with Civil Society is based on the Trade and Sustainable Development chapter of the Agreement between the European Union and Japan for an Economic Partnership. This joint dialogue brings together government and private sector stakeholders from both Japan and the EU to exchange views on topics such as trade and sustainable development, the environment, and labour issues. Through these discussions, participants confirm the steady implementation of the agreement and work to further enhance EU-Japan co-operation in the field of trade and sustainable development.

Japan is co-operating with ASEAN countries to promote efforts for decarbonisation, environmental burden reduction, and digitalisation based on the “The ASEAN-Japan MIDORI Cooperation Plan”. This project encompasses initiatives such as technology development, the dissemination of smart agricultural technologies, efforts to reduce environmental burden and participation in the establishment of international standards.

The Visualization Labelling scheme was launched in March 2024, in accordance with the Guidelines for Evaluation and Labelling of Environmental Burden Reduction for Agricultural Products. The guidelines outline the fundamental concepts and the procedure of the scheme, which helps to “visualise” farmers’ efforts to reduce their environmental burden. This star-based labelling scheme, a simplified grading system according to the amount of avoided emissions compared to average cultivation in the region, has been developed to provide easy-to-understand information to all stakeholders in the food systems, including consumers. Accordingly, since the launch of the scheme, more than 1 000 stakeholders, including retailers, restaurants, and other businesses, have joined in selling agricultural products with the label. Future expansion of the initiative beyond crop products to include the livestock sector is under consideration. In addition, an English version of the label and an English nicknamed “ChoiSTAR” have been introduced with an eye on foreign tourists to Japan as well as export markets.

In December 2023, a drafted guidance for the Carbon Footprint of Products (CFP) calculation for processed foods was developed by a group of food processing entities and others. Based on the draft, MAFF conducted pilot calculation projects in fiscal year 2023 and 2024, to make the guidance easier for a wide range of food businesses to refer to for their calculation, then published the guidance in April 2025. An increasing number of food processing entities have taken steps to reduce GHG emissions, leading to a growing demand for CFP calculation standards. The government hopes that, by fostering collaboration within the sector to mainstream GHG reduction in food supply chain management, the food systems would shift to more sustainable.

A draft methodology for reducing GHG emissions in agriculture through the Joint Crediting Mechanism (JCM) was developed in 2024 and the JCM methodology for Alternate Wetting and Drying (AWD) was approved by the Joint Committee between the Philippines and Japan in February 2025. This methodology in the Philippines, the first application of the JCM in the agricultural sector in the world, specifies how to reduce methane emissions from rice paddies through improved water management techniques of AWD. In the Philippines, several private companies are starting to implement AWD projects based on the methodology and the credits are expected to be issued early.

Recent policy developments

Domestic policy developments in 2024-25

Food security and diversifications of input supplies

The Basic Act on Food, Agriculture and Rural Areas, which serves as the foundational legal framework for Japan’s agricultural policies, was revised in 2024. This act, first enacted in 1999, outlines the fundamental principles and policy directions of Japan’s agricultural administration. The revision updates the act to reflect the changing circumstances faced by agriculture, and positions ensuring food security as a central pillar of its fundamental principles. The concept of food security has been significantly strengthened and redefined to go beyond the traditional focus on “ensuring food supply” to mean a stable supply of high-quality food at reasonable prices and ensuring that every individual in the nation has access to it. The revised act also emphasises a long-term vision for promoting sustainable agricultural practices and maintaining e rural communities.

The revised Basic Act on Food, Agriculture and Rural Areas of 2024 establishes the creation of a food systems in harmony with the environment as a new fundamental principle and stipulates the introduction and expansion of specific measures. These measures include promoting business activities that contribute to the sustainable supply of food by reducing environmental burden, with specific actions such as:

• Ensuring proper maintenance and enhancement of natural cyclical functions through:

  • appropriate use of pesticides and fertilisers

  • effective utilisation of livestock manure to improve soil fertility

  • adoption of production methods that contribute to reducing environmental burden.

• Facilitating the distribution and consumption of agricultural products that support environmental sustainability through:

  • ensuring smooth distribution of agricultural products

  • promoting the provision of accurate information to consumers

  • developing methods to monitor and evaluate the reduction of environmental burden.

In addition, by promoting business activities that contribute to the sustainable supply of food, MAFF aims to support the sound development and expansion of the food industry.

In 2024, initiatives under the MIDORI Strategy were expanded with a “Cross-Compliance”. Under this mechanism, the implementation of environmental burden reduction measures, such as energy conservation, appropriate fertilisation, and disease management tailored to the occurrence of pests and diseases, will become mandatory for all subsidy programmes in a step-by-step manner. Consequently, all recipients of financial support will have to adopt these environmentally friendly practices.

In 2024, the Act Partially Amending the Act on the Establishment of Agricultural Promotion Regions in Order to Secure Farmland and Effectively Utilise that Land for a Stable Food Supply was revised to strengthen the framework for ensuring the stable supply of food by securing and effectively utilising agricultural land. These amendments address the increasing challenges posed by declining farmland availability, aging farming populations, and the growing need for sustainable agricultural practices. The revisions introduced strengthened measures such as setting targets for the area of farmland maintained in agricultural promotion areas to secure the total amount of farmland mainly focusing on agricultural promotion areas, ensuring that high-quality farmland is preserved for agricultural use. The updated framework emphasises preventing farmland conversion to non-agricultural purposes, while promoting proper farmland utilising and securing total amount of farmland for improved productivity and sustainability. Key changes include incentives for collaborative farming practices and the introduction of mechanisms to encourage the participation of new entrants and younger generations in agriculture. Additionally, the relevant measures focus on improving land use efficiency by integrating advanced technologies such as precision farming and digital tools for farmland management.

Innovation and digitalisation

The Act on the Promotion of Smart Agricultural Technology Utilization to Improve Agricultural Productivity was enacted in 2024 to accelerate the adoption of smart agricultural technologies and boost productivity and sustainability in Japan’s agricultural sector. This new framework aims to address labour shortages, improve resource efficiency, and contribute to the country’s broader environmental and economic goals. Key measures under the act include financial incentives and special exception schemes for farmers and agricultural co-operatives to invest in smart technologies, as well as institutions and companies for research and development in precision farming and data-driven agriculture. Furthermore, in accordance with the act, the Innovation Promotion Conference for Smart Agriculture (IPCSA) was established to facilitate collaboration among stakeholders, including technology providers, researchers, and agricultural producers.

To accelerate the adoption of smart agriculture technologies, MAFF allocated JPY 4 500 million (USD 29.72 million) to promote smart agricultural technologies in 2024. These measures aim to enhance productivity, address labour shortages, and promote sustainable agricultural practices by integrating cutting-edge technologies into Japan’s farming sector. The budget also includes support for research and development of automation systems, precision farming technologies, and AI-driven decision-making tools. Additionally, funding was allocated to pilot projects for testing the integration of advanced robotics and connected devices in real-world agricultural settings, targeting key areas such as crop management, pest control, and resource optimisation. The budget also includes:

• MAFF Commissioned project study: since 2022, MAFF has conducted and led development of new varieties and R&D to help increase the adoption of organic farming and to reduce the risk-weighted use of chemical pesticides and chemical fertilisers, among other things listed as the KPIs in the MIDORI Strategy.

• Support for Technology Adoption: subsidies are available for farmers and agricultural enterprises to cover part of the costs of implementing smart farming solutions, including autonomous machinery and sensor-based monitoring systems. These initiatives also focus on building infrastructure for data-sharing platforms to enable better collaboration between farmers, researchers, and technology providers.

• Enhancing Agricultural Skills: MAFF’s budget emphasises capacity-building programs, including training sessions and workshops to equip farmers with the skills needed to operate and maintain smart farming technologies. These efforts aim to foster the transition to a technology-driven agricultural sector and support the sustainability and competitiveness of Japan’s food production systems.

Risk management

The Act on Countermeasures for Situations of Difficulty in Food Supply was enacted in 2024. The act reflects growing concerns about global and domestic risks, such as climate change and disruption of logistics, that could jeopardise the stability of food supplies. The act establishes a comprehensive framework to mitigate food supply risks through proactive measures, including co-ordinating shipments or sales, promoting imports, and promoting productions, according to the severity of the situation. In 2025, the government made a cabinet decision to establish the criteria for different stages of these situations and the measures for each stage.

Trade policy developments in 2024-25

Japan has set government export targets of JPY 2 trillion (USD 13.2 billion) by 2025 and JPY 5 trillion (USD 33 billion) by 2030. Japan’s exports of agriculture, food, forestry and fishery products were JPY 1.5 trillion (USD 9.9 billion) in 2024.

In 2024, as part of the broader revision of the Basic Act, an amendment was introduced to address the shrinking domestic market by promoting exports, thereby maintaining Japan’s food supply capacity and improving the profitability of farmers. The amendment included provisions to strengthen the competitiveness of agricultural products by promoting the efforts of export commodity organisations in response to overseas demand. It envisions the establishment of a support system for expanding sales channels, facilitating a greater presence of Japanese agricultural products in international markets.

In July 2024, a new collaboration was initiated between the Japan External Trade Organization (JETRO), the Japan Food Product Overseas Promotion Center (JFOODO), and the National Federation of Agricultural Cooperative Associations (JA). A “Cooperation Agreement for Promoting the Export of Japanese Agricultural and Livestock Products” was signed with the aim to further expand the export of Japanese agricultural and livestock products. This follows the amendment to the Basic Act explicitly incorporating exports in addition to domestic food supply to secure Japan’s food supply capacity.

Policy context

Key economic and agricultural statistics

Japan is the world’s third largest economy after the United States and China with relatively small land area and high population density (Table 17.2). Agriculture constituted 1% of GDP and 3% of employment in 2023, but the agriculture and agro-food sector as a whole accounted for 9% of GDP if all food-related industries are considered (MAFF, 2025[3]). Livestock accounted for more than one-third of the total agricultural output value in 2023, followed by vegetables (25%), rice (16%) and fruits (10%) (MAFF, 2025[4]).

Two-thirds of the country area is covered by mountains, leaving only 12% of the total land area for agriculture, more than half of which are rice paddy fields. Total agricultural land has decreased from 4.8 million ha in 2000 to 4.6 million ha in 2023 (FAO, 2024[5]) due to the abandonment and conversion of farmland to non-farm uses (e.g. residential, industrial, or commercial uses). The agricultural workforce declined by more than half since 1980 to 1.8 million in 2023, and the pace of this decline has accelerated in the last decade (SBJ, 2023[6]). The average farm size increased from 1.4 ha to 3.4 ha between 1990 and 2023 (MAFF, 2023[7]), but still remains small compared to other OECD countries. The average age of farmers was 68.7 years in 2023 and about 80% of farmers in Japan are over 65 years old (MAFF, 2023[7]; MAFF, 2024[8]).

Table 17.2. Japan: Contextual indicators

	Japan		International comparison
	2000*	2023*	2000*	2023*
Economic context			Share in total of all countries
GDP (billion USD in PPPs)	3 461	6 212	8.6%	4.0%
Population (million)	127	124	3.0%	2.3%
Land area (thousand km2)	365	365	0.4%	0.4%
Agricultural area (AA) (thousand ha)	5 258	4 635	0.2%	0.2%
			All countries1
Population density (inhabitants/km2)	340	335	52	64
GDP per capita (USD in PPPs)	27 290	49 951	9 368	29 013
Trade as % of GDP	8.7	17.4	12.3	14.9
Agriculture in the economy			All countries1
Agriculture in GDP (%)	1.5	0.9	2.9	3.5
Agriculture share in employment (%)	5.0	2.8	-	-
Agro-food exports (% of total exports)	0.3	0.9	6.4	8.1
Agro-food imports (% of total imports)	9.7	8.6	5.8	7.3
Characteristics of the agricultural sector			All countries1
Crop in total agricultural production (%)	74.1	60.6	-	-
Livestock in total agricultural production (%)	25.9	39.4	-	-
Share of arable land in AA (%)	92.6	87.7	31.8	33.3

Note: *or closest available year.

1. Average of all countries covered in this report.

Sources: OECD statistical databases; International Labour Organisation (ILO); UN Comtrade; World Bank, WDI; FAO database and national data.

The country has experienced slow economic growth and deflation for most of the past two decades, but has one of the lowest unemployment rates among OECD countries (Figure 17.4). Japan’s average core consumer price index climbed 3.1 % in 2023, marking its fastest increase in 41 years, mainly driven up by rising food prices.

Japan is one of the world’s largest importers of agro-food products, with the United States as the biggest source. The food self-sufficiency rate was 38% in FY2023 on a calorie basis, meaning that more than 60% of Japan’s calorie supply depended on imports. Agro-food exports are much smaller than imports, but the export value in 2023 was JPY 906 billion (USD 6.3 billion) which is about five times higher than that of 2000 (MAFF, 2024[9]). Most of Japan’s agro-food exports are directed at final consumers (Figure 17.5). Processed food products such as alcohol and beverages, sauces and seasonings, and snacks account for the majority of Japan’s agro-food exports. Among unprocessed products, beef, green tea, milk and dairy products and apples are the most exported.

Japan’s agricultural Total Factor Productivity (TFP) growth averaged 1.3% a year between 2012 and 2021, which is slightly above the global average and twice the growth estimated for 1991-2000 (Figure 17.6; Table 17.3). Recent TFP growth in Japan’s primary agriculture has allowed some modest output growth, offsetting reductions in the use of primary production factors, in particular labour, and intermediate inputs.

Japan’s nitrogen and phosphorus balances remain among the highest in OECD countries (Table 17.3). The high and increasing nitrogen balance is due to a combination of high fertiliser use and livestock production on limited pastureland. The high phosphorus balance, in contrast, is partly a result of soil characteristics (OECD, 2019[10]; Shindo, 2012[11]). Agriculture’s share of total energy use is below the OECD average, as is its share in GHG emissions – partly a consequence of the sector’s below-average contribution to the national GDP. The volume of agricultural water use has remained stable for the past few decades. In 2019, the Japanese agricultural sector used 67.9% of water of which over 90% was directed for paddy field irrigation (MLIT, 2022[12]). While average water stress in Japan has fallen somewhat, it remains much higher than the OECD average.

In response to these environmental challenges, the Japan International Research Center for Agricultural Sciences (JIRCAS) has focused on the phenomenon of “Biological Nitrification Inhibition” (BNI), in which crops release substances from their roots to suppress nitrification. This approach proposes the use of BNI to simultaneously contribute to environmental burden reduction and increased food production. In collaboration with the International Maize and Wheat Improvement Center (CIMMYT) and other institutions, JIRCAS successfully introduced the high BNI capability of a species of perennial wild wheat (Leymus racemosus) into cultivated wheat. This resulted in the development of BNI-enabled wheat with approximately a 30% nitrification inhibition rate, enabling high productivity with reduced nitrogen fertiliser inputs. Recently, JIRCAS and CIMMYT aimed to work together to make BNI-enabled wheat available for famers globally to achieve sustainable productivity growth, contributing to the realisation of carbon neutrality by 2050.

Table 17.3. Japan: Productivity and environmental indicators

	Japan		International comparison
	1991-2000	2013-2022	1991-2000	2013-2022
			World
TFP annual growth rate (%)	0.8%	1.0%	1.7%	0.8%
			OECD average
Environmental indicators	2000*	2023*	2000*	2023*
Nitrogen balance, kg/ha	170.8	179.3	32.0	29.7
Phosphorus balance, kg/ha	72.0	56.8	3.3	2.5
Agriculture share of total energy use (%)	1.2	1.2	1.7	2.0
Agriculture share of GHG emissions (%)	2.6	2.8	8.7	10.1
Share of irrigated land in AA (%)	54.7	54.4	-	-
Share of agriculture in water abstractions (%)	65.8	67.9	47.0	49.5
Water stress indicator	20.7	18.7	8.7	..

Note: * or closest available year. Data for nutrients balance refer to the year 2016.

Sources: USDA Economic Research Service, Agricultural Productivity database; OECD statistical databases; FAO database and national data.

Historical trends in agricultural policies

Agricultural land reform was implemented immediately after World War II, transferring farmland ownership from landlords to previously tenanted farmers in order to improve their economic and social position. The Agricultural Land Act restricted sales of farmland for the purpose of non-cultivation or asset holding, as well as strongly protected farmers’ rights. Acquisition of land rights for agricultural use was restricted to agricultural production companies, other than farmer-organised companies, until 2009, when the Agricultural Land Act was revised to allow non-agricultural production companies to lease farmland. Japan also invested in agricultural research, extension services, and land infrastructure to recover from the devastation of the war. At the same time, the government kept controls on rice procurement – from production to distribution to consumers – under the Food Management Law in order to secure food supply.

To address the rising disparity in living standards and productivity between agriculture and other sectors, Japan implemented the Agricultural Basic Act in 1961 to increase farmers’ incomes by promoting the modernisation of agriculture. From the mid-1950s to the mid-1990s, agricultural policies focused on price and marketing control, including tariffs for key products, particularly rice, to ensure affordable food prices for consumers while increasing farm income in rural areas.

In 1993, at the conclusion of the Uruguay Round trade negotiations, Japan agreed to a preferential quota on rice imports. The Food Management Law was repealed in 1995, introducing market mechanisms for rice distribution. Following the replacement of the GATT with the WTO in 1995, Japan converted non-tariff border measures to tariff rate quotas (TRQs) for major commodities, including rice.

Rapid globalisation of the economy, together with the continued decline in farming population and farmland area adversely impacted Japanese farming communities. In response, the Agricultural Basic Act was replaced by the Food, Agriculture and Rural Areas Basic Act in 1999 to establish four basic principles: 1) a stable food supply; 2) the desired multifunctional roles of agriculture; 3) sustainable development of agriculture; and 4) development of rural areas. Under the act, ten-year agricultural policy plans, named the Basic Plan for Food, Agriculture and Rural Areas, have been formulated since 2000.

Recent agricultural policy reforms have been aimed at helping the sector become more competitive, resilient and sustainable. The government-administered rice production quota system was abolished in 2018, and other pro-competitiveness reforms have encouraged farmland accumulation and consolidation, and re-organising agricultural co-operatives. In 2019, the revenue insurance programme was introduced to diversify farmers’ risk-management tools. The MIDORI Strategy was introduced in 2021; this is a sector-wide initiative to improve environmental, social, and economic outcomes throughout food systems by 2050.

Promoting agricultural and food exports has also become a key policy goal, as demand for Japanese food products increases globally. Japan improved market access through large-scale trade agreements in recent years, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in 2018, the Japan-EU Economic Partnership Agreement (Japan-EU EPA) in 2019, the Japan-US Trade Agreement in 2020, and the Regional Comprehensive Economic Partnership (RCEP) in 2022.

In 2024, the Basic Act on Food, Agriculture, and Rural Areas was revised to address new challenges for the agricultural sector. The revision strengthens food security as a core principle, expanding the focus of the act beyond food supply to ensuring stable access to high-quality food at reasonable prices, promoting sustainable agriculture and protecting rural communities.

Table 17.4. Japan: Agricultural policy trends

Period	Framework	Changes in agricultural policies
Prior to1960	Eradication of rural poverty and securing food supply	Agricultural land reform implemented to help farmers own farmland (by transferring it from landlords to previously tenanted farmers in order to improve their economic and social position) Arrangements to increase food production (Agricultural Co-operatives Act of 1947, Agricultural Disaster Compensation Act of 1947, Agricultural Land Act of 1957) Policy priority given to increasing rice production to solve serious food shortage (Food Management Law of 1942, Five Year Food Production Increase Plan of 1952)
1960-1980	Reduction of income disparities between agriculture and other industries	Agricultural Basic Act (1961) to increase farmers’ income by increasing farm size, improving farmland, adopting agricultural machinery and technology and shifting from rice and wheat-based production to livestock, vegetables and fruits. Rice policy goal changed from increasing rice production to managing quantity as full self-sufficiency achieved in 1967 Rice production adjustment control introduced in 1971
1980-2010	Adjusting towards internationalisation, bringing market principles to the agricultural sector, and integrating concepts of ‘rural area’ and ‘food’ into agricultural policies	Agricultural Management Framework Reinforcement Act (1993) systematises support for qualified farmers Act on Stabilization of Supply, Demand and Prices of Staple Food (1994) changes the role of government in rice state trading; government only purchases for stockpiling purposes Quantitative quotas of rice replaced by tariff rate quota (1999) Act on Food, Agriculture and Rural Areas (1999) aims to establish stable agricultural structure in the new economic and social conditions; food self-sufficiency goal and direct payments for farmers in mountainous areas introduced
2010-Present	New agricultural reforms to enhance competitiveness and resilience	Farmland reforms (2009 revision of Agricultural Land Act to allow non-agricultural companies to lease farmland, 2013 Act on Promotion of Agricultural Land Intermediary Management to facilitate agricultural land consolidation) Amendment of Agricultural Co-operatives Act (2015) Abolition of rice production quota system (2018) Introduction of the revenue insurance programme (2019) Large-scale trade agreements (CPTPP, Japan-EU EPA, Japan-US Trade Agreement, RCEP) and export promotion of agricultural and food products Formation of the MIDORI Strategy with sustainability and food related goals (2021) Revision of the Act on Food, Agriculture, and Rural Areas (2024), emphasising the stable availability of high-quality and sustainably produced food at reasonable prices, equitable food access for all individuals, and resilient rural communities

Support to farmers declined from close to 57% of gross farm receipts in the mid-1980s to less than 31% in 2023. The share of market price support also declined, while Japan provides a range of budgetary forms of producer support, higher domestic prices continue to provide the majority of transfers to producers, accounting for close to 70% of PSE in 2021-23 (Figure 17.7).

References

[5] FAO (2024), FAOSTAT Statistical Database, https://www.maff.go.jp/j/tokei/kouhyou/sakumotu/menseki/.

[2] Frezal, C. and A. Deuss (2025), “Trade-related measures linked to the environmental sustainability of agriculture: A stocktake and typology”, OECD Publishing, Vol. 216, https://doi.org/10.1787/ebfdca09-en.

[3] MAFF (2025), GDP calculation for agriculture and food related sector (in Japanese), https://www.maff.go.jp/j/tokei/kouhyou/keizai_keisan/index.html.

[4] MAFF (2025), Total agricultural output (national estimate) (in Japanese), https://www.maff.go.jp/j/tokei/kouhyou/nougyou_sansyutu/.

[9] MAFF (2024), Overview of import and export of agricultural, forestry, and fishery products (in Japanese), https://www.maff.go.jp/j/tokei/kouhyou/kokusai/attach/pdf/index-58.pdf.

[8] MAFF (2024), Statistics on agricultural labour (in Japanese), https://www.maff.go.jp/j/tokei/sihyo/data/08.html.

[7] MAFF (2023), Agricultural structure statistics 2024 (in Japanese), https://www.maff.go.jp/j/tokei/kouhyou/noukou/.

[12] MLIT (2022), Water resources in Japan (in Japanese), https://www.mlit.go.jp/mizukokudo/mizsei/mizukokudo_mizsei_tk2_000014.html.

[10] OECD (2019), Innovation, Agricultural Productivity and Sustainability in Japan, OECD Food and Agricultural Reviews, OECD Publishing, Paris, https://doi.org/10.1787/92b8dff7-en.

[6] SBJ (2023), Labour Force Survey, Statistics Bureau of Japan (in Japanese), https://www.e-stat.go.jp/dbview?sid=0003007108.

[11] Shindo, J. (2012), “Changes in the nitrogen balance in agricultural land in Japan and 12 other Asian Countries based on a nitrogen-flow model”, Nutrient Cycling in Agroecosystems, Vol. 94/1, pp. 47-61, https://doi.org/10.1007/s10705-012-9525-x.

[1] WTO (2024), World Tariff Profiles 2024, https://www.wto.org/english/res_e/publications_e/world_tariff_profiles24_e.htm.