Impact of Agricultural Land Holding Rationalization Corporation on Farmland Liquidation in Hokkaido

Abstract

Past studies establish that the Agricultural Land Holding Rationalization Corporation (ALHRC) reduces transaction cost and promotes land liquidation through farmland leasing. This study evaluates the impact of the introduction of ALHRC on farmland liquidation in Hokkaido by using the difference-in-differences method. The result indicates that the rate of farmland leasing increased from 3-4 percent in the communities where ALHRC was introduced.