Abstract
Abandoned Farmland in the Less Favored Areas tend to be recognized as waste land with no rent provision, however it is potentially available for extensive land use. Through the investigation on a diversified dairy farm in Shimane Prefecture operating weed harvest on abandoned farmland and grazing livestock, marginal return on land for abandoned farmland is calculated to be about 30,000 yen/10a, which is relatively more productive than their domestically purchased roughage. Accumulating loss of 19 million yen over the first two years is considered to be conversion cost into new enterprises with extensive land-use.