Abstract
We have examined the current condition and problems of agriculture in hilly and mountainous areas (Chusankan Chiiki) and discussed measures for promoting less-favored agriculture and rural economy. In hilly and mountainous areas, agricultural production has declined because a number of commercial crops have disappeared. However, in 2000, to protect agricultural multi-functionality, the central government introduced a direct payment system to farmers in hilly and mountainous areas as part of so-called decoupling agricultural policies. This policy has been highly evaluated in terms of its success at maintaining agricultural land that has a high risk of abandonment. However, there are also problems with implementing this policy, such as acquiring a suitable workforce and applying the policy in small settlements. We should not place too much hope in this system. The downward trend in the number of people employed by construction and manufacturing industries means that the local economies in hilly and mountainous areas are fairly depressed. To enable them to play an important role in maintaining rural communities, industries need to be restructured. The globalization of food systems, has led to growing consumer's interest in local foods that are produced using processes that have a positive impact on hilly and mountainous areas. There are successful cases of local and agricultural development based on the integration of different sectors of industry, such as selling agricultural products, processing agricultural foods, and rural tourism. We have described this new kind of industry as an 'integrated lifestyle industry' and the economic changes are described as 'a growing economic complex based on communication between rural residents and urban people'. These new local developments will define the future direction of agricultural and regional development in hilly and mountainous areas.
