Is the Revitalization of Japanese Agriculture Possible?

—Is "Agriculture You Can Make a Living From" Just a Dream?—What Are the Realistic Options to Revitalize Local Regions?

Why Is "Agricultural Revitalization" Necessary?

In recent years, the "agricultural crisis" has been frequently covered in the news. The increase in abandoned farmland, the aging population, the shortage of successors, and low profitability... However, every time these topics come up, many people may simply accept it as "that's tough" and feel as if it is someone else's problem.

But in reality, agricultural issues are deeply connected to the lives of all citizens. Food is a daily necessity, and agriculture is the foundation of its production. Despite this, Japan's food self-sufficiency rate (on a calorie basis) is a mere 37% (FY2022, Ministry of Agriculture, Forestry and Fisheries). In other words, we live with the reality that we depend on overseas sources for about 60% of our food.

If this situation continues, our dining tables could be instantly exposed to crisis when global conditions change or natural disasters occur. In fact, it is fresh in our memories that the prices of imported wheat and fertilizer have soared due to the war in Ukraine and the impact of COVID-19, leading to continued price hikes for bread and ramen.

Thus, "agricultural revitalization" is not just a local issue or a problem for farmers alone. It is an extremely important theme from the perspective of "national security" and "stability of the people's lives."

Reviving Fallow Land Is Not Easy—The Reality of Abandoned Farmland

Entering 2023, the government suddenly began issuing a policy to "increase rice production." Despite having previously promoted a policy of acreage reduction (limiting rice production) due to concerns about a rice surplus, this is a 180-degree shift in policy.

Farmers on the ground are confused by this sudden change in direction. Voices are being raised saying, "Even if we are told to plant rice in the paddies now, land that has been fallow for many years cannot be used immediately," and "The grass is overgrown, and the soil's nutrient balance has been disrupted."

In fact, reviving fallow land requires a lot of effort and cost. First, there is weeding, soil improvement, irrigation maintenance, pest control... Moreover, just because you do that, there is no guarantee that you will immediately be able to harvest "delicious rice."

In other words, it is not as simple as "having a paddy means you can grow rice immediately." To regenerate fallow land, subsidies from the national and local governments, the dispatch of experts, and continuous support are essential.

Furthermore, for farmers who stepped away from agriculture due to the acreage reduction policy to return to planting, there must be "sufficient appeal." Unless conditions such as the prospect of income, a sense of purpose, and the ability to pass it on to the next generation are met, no one will return.

That is precisely why the regeneration of farmland is a national issue that should not be left entirely to farmers.

The "Limits" of the Agricultural Cooperative-Led Distribution System and the Lack of "Autonomy"

Many farmers ship their crops through "JA (Japan Agricultural Cooperatives)." While this means a safe and stable sales channel, it also carries problems such as "inability to set prices independently," "lack of freedom in planting," and "low profit margins."

For example, if an agricultural cooperative in a certain region instructs farmers to "please grow more cabbage this year," many farmers will follow that instruction. However, if the result is an overproduction of cabbage nationwide, the price will plummet. Farmers may end up in the red rather than just making a thin profit.

Furthermore, when selling through agricultural cooperatives, the purchase of pesticides, fertilizers, and other materials is often bundled, so the degree of freedom is not actually very high. This makes it difficult for agriculture to become an "independent business," and it gets incorporated into a structure that keeps farmers "neither alive nor dead."

In recent years, centered around agricultural startups and young farmers, there have been movements to explore distribution channels that do not rely on JA, such as utilizing direct online sales and the hometown tax donation system. Through this, models that increase profit margins and build trust by connecting directly with consumers are gradually being established.

For agriculture to become "profitable," this kind of "autonomy in distribution" is indispensable. I am not denying the existence of agricultural cooperatives, but it is only when there are multiple options that farmers can freely formulate strategies.

Beyond the "Just Words" Boom of the Sixth Sector Industrialization

The "sixth-sector industrialization" refers to initiatives that increase added value by combining "agriculture (primary industry) x processing (secondary industry) x sales (tertiary industry)," with farmers themselves handling production, processing, and sales.

A few years ago, the government also actively tried to promote the sixth-sector industrialization. Subsidy systems were established, and items like "jam made by farmers" and "regionally branded pickles" became popular topics. However, unfortunately, many of these ended up being just a "buzzword-only boom."

One reason for this is that "the number of people capable of handling sixth-sector industrialization is limited." Many farmers lack the know-how for processing and sales, and the hurdles to securing new machinery, facilities, and personnel are extremely high. Furthermore, coordination with local businesses and the government was insufficient, and support for sales channels and promotion was also lacking.

There are successful examples. For instance, there are cases where agricultural corporations have opened wineries or gelato workshops and achieved high profitability by selling products in conjunction with tourism. What these have in common is "collaboration with experts," "community-wide cooperation systems," and "information dissemination utilizing social media."

Future sixth-sector industrialization needs to change from being "something for a few conscious farmers" to a "system design that any farmer can enter." That is the key to boosting the local economy and fostering new business models for agriculture.

Rebuilding Local Infrastructure and Support Systems

To revitalize agriculture, there is a limit to what farmers can do on their own. Especially in rural areas, the fact that the "foundation" surrounding agriculture—namely infrastructure and support systems—is inadequate is a major obstacle to revitalization.

For example, irrigation facilities such as waterways and reservoirs, the maintenance of farm roads, and the replacement of aging agricultural machinery cannot be handled by individual farmers. In depopulated areas in particular, even maintaining such infrastructure is becoming difficult, and there are many cases where young generations who want to start farming cannot even "stand at the starting line" in the first place.

Also, the reality is that local government agricultural support systems lack human and financial resources. Even if systems like farmland banks and support for new farmers are in place, there is an overwhelming shortage of staff and experts who can "walk alongside" them.

In other words, to boost agriculture, it is necessary to rebuild not only farmland and human resources but also the "public infrastructure and systems" that support them. And the government is being asked to take responsibility for providing the budget measures and technical support for that purpose.

Even more important is a community-wide cooperation system. Agriculture can never be sustained by farmers alone. New value is created only by collaborating with local construction firms, contractors, schools, tourism operators, and welfare facilities.

Revitalizing agriculture also leads to revitalizing the economy and livelihoods of the entire region. A redesign is required as a comprehensive "rural policy" for that purpose.

To Seriously Create "Profitable Agriculture"

For a long time in Japan, the image that "agriculture equals unprofitable" has taken root. In fact, the income of average farmers has remained below the average for salarymen, and it is often positioned as a supplementary activity, such as "as a side job" or "for a little extra on top of a pension."

However, this is a problem of systems and distribution, and it does not mean that "agriculture itself is an unprofitable industry." In fact, in the world's advanced agricultural nations, there are many examples of achieving high profitability by making full use of technology and marketing.

For example, although the Netherlands has a land area about one-tenth that of Japan, it is the world's second-largest agricultural exporter (as of 2022). This is the result of combining advanced greenhouse cultivation, IT utilization, logistics networks, and cooperation between educational institutions.

This is also possible in Japan. Young farmers and ventures already working on smart agriculture (utilizing AI, drones, sensors, etc.) are beginning to emerge. To expand this, "mechanisms that allow for investment recovery," "environments where one can take on challenges," and "safety nets that allow for re-challenging even if one fails" are essential.

Also, flexible management forms that do not stick to the traditional "family management model," such as "agricultural incorporation," "shared farms," and "regionally linked brand building," are required.

"Profitable agriculture" does not simply mean selling at a high price, but having a "revenue structure that allows for reproduction." If that can be realized, agriculture will not be a "declining industry" but a "growth industry," becoming a field that both young people and companies will want to enter.

From the Perspective of Japan's "Food Security"

Another essential perspective when discussing the revitalization of agriculture is "food security." Along with energy, food is the most important strategic resource that supports the foundation of a nation.

Currently, Japan's food self-sufficiency rate is 37% on a calorie basis (as of fiscal year 2022). This is an extremely low figure among major developed countries, and the current situation of relying on overseas sources for more than 60% of our food means that we could face a crisis in an instant if international logistics were to be disrupted.

In fact, the disruption of international supply chains due to the spread of COVID-19 and the war in Ukraine has affected Japanese dining tables. It is fresh in our memory that the prices of wheat, oil, feed, fertilizer, and processed foods soared, and price pass-throughs became widespread.

Increasing domestic food production capacity is not just a problem for farmers; it is an issue directly linked to the very "sustainability of the nation." In Japan, a country prone to disasters, securing food is deeply connected to disaster prevention planning.

As agricultural risks due to climate change continue to rise, the importance of having a stable domestic production system will only increase. We need to stop treating agriculture merely as a "culture to be protected" and reposition it as a "strategic investment for the future."

What are the mechanisms for attracting young people to agriculture?

To make agriculture a sustainable industry, the next generation of successors is essential. However, in reality, the average age of agricultural workers is 68.4 years old (as of 2022), which is significantly aging, and the entry of young people is very limited.

One of the reasons for this is the "high initial investment" and the "difficulty in seeing a path to success." Land, agricultural machinery, facilities, knowledge of crops, securing sales channels... There are many hurdles to starting from scratch.

However, there are now signs of change. In various regions, the number of entry points for young people to get involved is increasing, such as "agricultural internships," "corporate farming," and "agriculture x IT startups." In particular, there is an increasing number of cases where people who felt doubts about their life as salarymen in urban areas are moving to rural areas in search of independence in agriculture and coexistence with nature.

To accelerate these movements, it is important to recognize that "not only farming support but also life support is necessary." Only with "peace of mind in daily life" after moving, such as housing, childcare support, and connection with local communities, can people settle down and engage in agriculture.

It is also effective to collaborate with educational institutions to design career paths, such as "learning agricultural business while in high school" or "institutionalizing agricultural internships at universities." Agriculture is a "technology for living" and a field where young people's sensibilities can be utilized.

Conclusion—Agricultural Revitalization is Not a "Dream" but a "Choice"

In this article, I have discussed the revitalization of agriculture from multiple angles. Reuse of fallow land, reform of distribution, redefinition of the sixth-sector industrialization, infrastructure support, review of profit structures, food security, and fostering the next generation of successors...

None of these are impossible. What is needed is "resolve" and "strategy." How seriously the government views agriculture as a core industry, how much local regions look toward the future of their communities to rebuild, and how much we as consumers can rethink food and agriculture as "our own business."

Agriculture is not an "industry of the past." Rather, it is an industry with the potential to contribute to future challenges such as energy issues, environmental problems, and a shrinking population society from the front lines.

Agricultural revitalization is no longer a dream. It is a "realistic future" that each and every one of us can choose. If policies, companies, and citizens all start moving as one, Japanese agriculture will be able to breathe again.

Thank you for reading to the end.
Actually, I am the eldest son of a farming family, and I am one of those who feel a sense of crisis regarding the decline of agriculture.
The farming at my parents' home is already effectively out of business, and the fields are rented out to others, so we are not farming ourselves.
It is not hard to imagine that there are many such farmers all over the country.
Agriculture is a field that should not be subjected to competition. It is the foundation of the country, and it must be protected generously and connected to the future.

Next time, I would like to speak out about the theory of dismantling agricultural cooperatives. I haven't even finished the structure yet, but I have a feeling that I must say something.