As we see more and more pressure placed on the liberalization of agricultural products and expansion of abandoned farmlands within the country, the demand for strengthening the management system of land-use agriculture seems to be increasing. One of the solutions for this problem is the entry of enterprises into this field. However, according to academics in the field, it is too difficult for enterprises to take up farming considering that land-use agriculture has been based on family businesses. On the other hand, those concerned with the study of farm management have mentioned "New Farm Management," which is a system in which the development of totally new enterprises or organizing farms in a manner never seen before are to be implemented. Indeed, the conditions such as upgrading the managerial environment based on the market, adoption of industrial skills and corporate management, changing farm income realized by direct payments, and lower wages and lower land costs are sure to lead to corporate management ventures. However, considering the limits of industrial management and its instability, it will not be easy to progress this option. Furthermore, it can be said that corporate management shows a very peculiar feature, which is that it has the characteristics of a public business due to its dependency on subsidies, and that it is destined to be based upon stakeholder management in the regional communities.

View full abstract

This paper considers how current agricultural management should be categorized and what the keys are for understanding agricultural management from a practical business perspective.
Each of the representative agricultural management styles present in Japan are categorized, and the model cases, which had been collected through individual inquiries, have been analyzed.
The conclusions are listed as follows:
1. Management styles can be categorized according to the following conditions : 1) the timing of participation of corporations in management (whether these are existing newly established corporations), 2) whether the firm is incorporated or not, 3) whether the firm is family-owned or not, and 3) whether there is or is not employment.
2. Management has been diversified so widely that it can be categorized not only by the kinds of products but also by targeted economic efficiency and sociality, as well as means of collaboration.
3. Business models are created through the process of optimizing management resources.
4. Management is beginning to reflect a management strategy perspective regardless of the consciousness of managers.
5. Overcoming agricultural specificity is the major motive for managers seeking profit and development.
6. Family-owned businesses are changing to organizational management involving employment.
7. Some of the elements above are combined, and have promoted the transition to corporate management in agriculture.

View full abstract

The purpose of this paper is to analyze the current situation and issues about business development and human resource management of Japanese paddy farming companies. Concretely, this paper clarifies the trends and features of business development and human resource management on the basis of case studies on seven paddy farming companies in the Tohoku and Hokuriku regions. In addition, this paper classifies a grouping axis designed according to the business model of each company, and compares features of the human resource management of each company.
The main results of the analysis are summarized as follows:
1) There are differences in employees' position and expected role that is dependent on the direction of business development and the business model for each company.
2) Managers expect an employee's contribution to the organization to be based upon spontaneous activity in various scenes and roles.
3) The lack of an intentional employee training process and human resource management are important problems in paddy farming companies' management.
On the other hand, the main problems of the future are presented as follows:
1) Each company should restructure its original business model on the basis of that company's strengths and weaknesses.
2) It is important that each company work on each employees training toward an original target.
3) It is important that these companies develop their businesses by restructuring their own business model and synchronizing the system to appropriate models of human resource management.

View full abstract

This study revealed that there is no definite line of demarcation between "corporate farming" and "family farming." A lot of networking organizations and franchise organizations are observed in "family farms." Simultaneously, there are few cases of "corporate farming" that have absolutely no family elements. Nevertheless, across countries and regions, almost all farm businesses share features of both "somewhat familial" and "somewhat business-oriented."
In the USA, there are arguments for and against "corporate farming", and some states restrict corporations from entering farming by prohibiting them from acquiring farmland. The main reasons against "corporate farming" are concerns about (1) a decrease in the number of family farms, (2) rural economy decline, (3) monopolistic and oligopoly markets, (4) environmental impacts, and (5) animal welfare. However, in fact, a main cause for these changes could well be technological changes, while "corporate farming" may not always be the main cause. On the other hand, a vital condition for "corporate farming" in crop production is economies of scale, with a previous study suggesting that economies of scale have been observed in very large family farms, and thus the viability of non-family corporate farming may be verified even in the USA. Another issue being discussed is the definition of "family farm." If the definition is changed with respect to land ownership, labor and farm size, the number of farms that could be classified as "family farm" would be limited substantially.
When "corporate farming" and "family farming" are considered, family business studies should be focused. Family business studies observe any firms that are owned in some form on a family-basis, and explore the issues including governance through family and business succession. Farm businesses and family businesses have a lot in common, such as their attitudes to enhance their relationship with the local community. It will become important to consider the viability of farm business development by applying the concept of family business studies.
In crop production, it is anticipated that the mainstream of farm businesses will be based on family farms, at least for the time being, and the conditions for increased non-family corporate farming are limited. Therefore, in farm business management studies, it is important to contribute to the development of sustainable business models in any farm businesses that are operated with sincerity. It is also a vital effort to accumulate studies to solve urgent problems in "farm family businesses," including farm succession, family governance, and obtaining business resources in order to put "corporate farming" in perspective.

View full abstract