The Impact of Farmer and Farmland Plan on Farmland Consolidation

Abstract

Farmland Consolidation(FC) is a key policy challenge in addressing inefficient land use and enhancing agricultural productivity in Japan. While market-based approaches have long been employed, they alone have not been sufficient to achieve effective consolidation, necessitating institutional support. Introduced in 2012, the Farmer and Farmland Plan (FFP) is a government-induced initiative that encourages rural communities to develop voluntary plans for FC, with municipalities (government) serving as facilitators in the process. This study examines the impact of FFP on FC using regression analysis that accounts for endogeneity. The results show that the FFP significantly promoted FC to business farmers.