The Characteristics of the Farmland Leasing Market and Farmland Renting Behavior in the City Outskirts of Okinawa Mainland

A Case Study of Sashiki Town

Abstract

The purpose of this paper is to clarify the features of farmland markets and the logic of farmland leasing by farmers who are inclined to expand the scale of their operations through leasing land in areas located on the outskirts of the city in Okinawa mainland. The future direction of farmland leasing will also be clarified.
Farmland in this market region is typically leased by those not directly related to the land owners. The “azuke-azukari” pattern typical of Okinawa until this point has been transformed. Neither the level of rent paid for the land nor the borrower's domicile is viewed as important. Rather the conditions under which land is leased tend to place an emphasis on the return of the land when it is needed by the owner and whether or not the borrower suitably maintains the land. Thus, the pattern of “azuke-azukari” has not disappeared completely.
Land that is leased out by the owner is surplus land that is unnecessary for their farm operation The weakening labor resources of sugarcane farmers and the shift away from sugarcane production into more profitable horticulture are contributing factors.
The aging of the sugarcane farmers in this area is serious, and if sugarcane profitability declines further, the amounts of farm land offered for lease will steadily increase. Because of this, providing the conditions of the lease are met then, even in the absence of high rent payments, the leasing of land outside the rural community will continue.