Japanese farming entities were characterized as family farms for a long time. Recently, however, family farms are relativized in the context of the diversification of types of farming entities. The definition of family farms has become vague despite agricultural policies to promote the establishment of vital family farms as a new structural policy target. We can observe the polarization of farming entities ranging from large scale farm businesses to small and rather small scale family farms throughout the world.
In this symposium, we discussed first the changing internal and external factors of Japanese family farms. Second, we pointed out the roles and significance of family to farming business. Third, several features regarding the future of Japanese family farm are argued. Fourth, we presented the problems of family farms in a globalized economy.

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The bulk of farm management is steadily shifting from traditional family-operated farms to family farms that have no full-time farmers. Business-style family farming that depends on hired labor is increasing. The purpose of this paper is to explore the possible changes in the characteristics of business management problems and in the fundamental character of family farming that might be brought about as traditional family farming proceeds towards a style of farming that is dependent on hired labor.
The specific topics covered are as follows. This paper first determines the direction in which family farming dependent on hired labor is heading. Second, analytic hierarchy process and operations research is used to show the characteristics of the business objectives that this type of farming has, and whether it makes economic sense to hire labor. Third, an attempt is made to shed light on the extent to which advances have been achieved in labor management, which is a typical business management problem.
Family farming that depends on hired labor becomes viable through a process of sustainable-scale expansion through innovation. The character of management differs from that of traditional management in terms of business objectives, proprietors’ perceptions, operational principles, and other aspects. In addition to the practices of production management that have prevailed on family farms, business management now aims to more effectively utilize large-scale business resources and finds more importance in financial management owing to multiple capital injections, the conduct of sales management as farmers develop their own sales channels, and in expanding into labor management owing to the growth in the quality and quantity of hired labor.
These business objectives emphasize raising income levels. As such, proprietors put a high priority on hiring workers, and believe that business management ability and innovation are important. Increase in expected income demands an increase in total working hours, and this is achieved by hiring labor when family members reach the limit of their labor supply. Growth in the amount of hiring leads to an expanded equilibrium which increases family labor productivity and land productivity. The reason is that the marginal productivity of hired labor is greater than the wages paid. As long as this holds, the use of hired labor in the production venue makes economic sense.
In such farming, the place of hired labor is shifting from supplementary labor to core labor, and the number of hired workers is rising. The focus of labor management is becoming more sophisticated and is moving from working conditions, wages, and employee benefits toward the non-economic motivation of managing human relationships, education and training, and managing the willingness to work.

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The main purpose of this study is to make clear the difference in management styles between family farms and business enterprises in enterprise farms of paddy field agriculture. In this study, we compare management awareness, management structure and business management methods between family farms and business enterprises in the enterprise farms of paddy field agriculture.
As increases in scale economy and diversification progresses, the character of enterprise farms tends to become more profitable and increase the number of full-time employees and to educate middle men as managers.
But, enterprise farms are not homogeneous. Some enterprise farms still continue to have decisions made by family members, even as farm size enlargens and the number of full-time enployees increases.
Finally, the style and character of enterprise farms depends on the goals that managers aim at and their ability to manage employees’ and family members’ labor.

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NAGAI FARM Corporation manages rice cropping and dairy, and plays a major role in the regional agriculture of Kano area in Tomi ward, Nagano Prefecture. Our very small farm gradually expanded to around 50 ha of paddy field, 40 head of cows and production of vegetables and fruits. This paper explains how the management of our farm has developed especially focusing on the process of establishing a company.
The second section introduces Kano area in Tomi ward where our farm is located and provides an overview of our farm management. The corporate history is described beginning in 1962 when my father was first engaged in agriculture. Our farm had only 1 hectare of paddy and 1 cow at that time. After the old Agricultural Basic Act was enacted, we expanded the scale of dairying and introduced grapes and asparagus. When I myself became engaged in the farm in 1991, we started to increase the scale of paddy fields and tried to develop channels for sales in a liberalized rice market. As the size of our farm expanded, we needed to employ new staff in addition to family members in order to cope with the need to market as well as to produce. Under that situation, we established a limited liability company in 1996, and started to undertake rice products processing. The company was reorganized and went public in 2009 with twelve staff members, and a satellite store was opened to sell gelato made with our own milk.
The concepts underpinning our farm management are expressed as follows; 1) Practicing organic agriculture, i.e. recycling in rice and dairy through the composting of rice straw, 2) Creating an environment to sell our farm products through marketing by our own company, and 3) Becoming a core management unit of our community and encouraging regional agriculture. Through these concepts, we aim to be a management unit which is supportive of our stakeholders.
The third section describes the division of roles in the management of our farm. Our farm operates with three units; a production unit (producing), a management strategy unit (processing and selling) and a headquarters unit (accounting and general affairs). My wife and I are in charge of the headquarters unit and have one other staff assigned to it. My sister is in charge of the management strategy unit and has five other staff memers working with her, and her husband is in charge of the production unit with six other staff members. These four family members compose the board, and my parents became chairpersons for giving us advice. Considering such a situation, our farm can be called a “family business” because the decision making organization is constituted of family members. On the other hand, it can be called a “firm business” because we define each management role and establish a unit system.
Furthermore, the problems concerning employed staffs are pointed out. First, it is more difficult to share the management philosophy with all staff members than keeping it within the family. In a firm business, an understandable slogan is needed to share the original thought of my father and myself with employed staff members. Second, some staff leave our company after being trained on our farm for several years. The inheritance of agricultural skills and management within the firm is a challenge for the future.
Along with these situations, the increase of paddy land transactions is expected. We need to respond to regional requests on our firm because the trust relationships established with other farmers of the region are very important for us. We intend to repay them, partly through undertaking dairy products processing, and selling our products more aggressively than ever before.

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This paper focuses on farm management reform accompanying the enlargement of farm size in a field husbandry farmhouse in a paddy field area. The management makes reference in this paper to four points; production control, sales management, personnel management, and financial management. The study case is the “NOGAMI KOUSAKUSYA” family farm in northern Kyushu. On this farm, four kinds of crops are grown －rice, soybeans, wheat, and persimmons. This farm has been authorized as a farm unit that has their own farm management improvement plan approved the municipality since 1995. From that time on they have enlarged farm size. The aggregate planted area is 48.3 hectares, which represents a doubling over the past ten years. The following management operations were performed during that time.
Production control: the omission of spray work through pool raising of rice seedlings; improvement of work efficiency using large machines; setting up a rice processing facility; and the improvement of the operating ratio of machines and facilities through the implementation of partial farm work contracts.
Sales management: value added improvements by practicing sustainable agriculture; selling price improvements through direct sales of products; and sales promotion via a website.
Personnel management: using temporary employment which utilized the senior manpower center; and farming instruction for the successor who has worked here since 2009.
Financial management: tax savings by the change to a blue return. In addition, the necessity for short-term borrowing has fallen with enlargement of farm size. It is because cash earnings can be obtained every year through direct sales of rice.

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