One prospective strategy for Japanese rice farms is to differentiate products for the international rice market by improving quality and taste. The transfer of the knowledge and skills of experienced farmers is called for since their field level production techniques are in danger of disappearing due to the overwhelming aging trend in Japanese rural areas.

Farmers’ technological choices can be understood as a trial and error learning process. Farm managers repeat the PDCA process in which they plan at the beginning of the year, execute the technology, evaluate the results (harvest) and adjust for the following year. Farming techniques are chosen and executed in the context of the internal and external business environments and knowledge. Knowledge is acquired from previous managers as well as external organizations. Agricultural techniques are characterized by continual reaction to the impacts of the natural environment such as water, soil and weather conditions.

We selected a mountainous area in Uonuma, a leading Koshihikari production region, as a study area. First, the impact on rice taste scores of external factors such as location and individual farm factors were quantitatively estimated. Second, in-depth interviews were conducted in order to clarify the technological choices of high-performance rice growers who are adjusting to their external and internal environment.

The Data used in the OLS and fixed effect regressions are five-year rice taste scores by JA shipment lot. The estimated results show a considerable individual fixed effect accompanied with external factors such as altitude and isolation conditions. Such tendencies are more prominent in high altitude areas. A group of highest fixed effects was observed among the small-scale farmers which suggests that elder, small farmers can input more effort for producing better tasting rice than large-scale farms.

Interviews were conducted with four farm managers who had a sustained result of superior taste scores. Under the condition of small rice field plots and inconvenient irrigation facilities, which is unlike flat areas, these managers employ labor intensive practices, especially for water management and fertilizer application. Customized application guidelines provided by external organizations are practiced in order to adjust to individual field and weather conditions.

These farming technics are selected mainly on the basis of experience gained through individual learning by trial and error of yearly practices rather than knowledge obtained from the previous generation. Changes in the external environment such as market conditions and technological advances can explain such a learning process in addition to limited availability of explicit knowledge such as in production guidelines.

High-performance farmers also select extensive practices concurrent with techniques for achieving excellent taste due to changes in the internal environment. Aging and labor shortages were addressed as main reasons for outsourcing of raising seedlings, harvesting and drying, extensive use of fertilizer and material, as well as a compromised operation schedule.