In this report, we describe the characteristics of agriculture in Hanamaki, Iwate prefecture, Japan and how universities can contribute to the local community in response to labor shortages. Regarding the former, Hanamaki City has a high percentage of individual farmers, while a small number of collective farmers operate large-scale farms of more than 10 ha. The age structure of farmers’ family members shows that farmers who were in their teens in the 1960s will be in their 60s and 70s by 2020. Since many of the younger generation have never experienced farming, in order to realize sustainable agriculture, it is essential to provide opportunities for young people to experience farming and to disseminate information on the appeal of farming as a career. With regard to the latter, while the shortage of local labor has been a longstanding issue, measures to address it have been limited. Universities have a large number of students around the age of 20, and providing opportunities for them to play an active role in the community will enhance the reputation of the university in the region, and in many cases, contribute to the community. Primary industries are often closed in some regions, and universities working with local governments to provide students with opportunities to learn about local industries can have unexpected ripple effects, as shown in this report, and should be actively engaged in as a university that is visible to the community.

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This study reports some findings from a survey and research aimed at contributing to the challenges of managing a business based on the assumption of a minimum wage. This business model assumes that the rate of increase in the minimum wage will remain low. If the rate of increase in the minimum wage rises beyond the company's expectations, the premise of minimum wage management, which is to keep labor costs at a minimum, will no longer hold true. In other words, this management method is viable only in a deflationary economy.

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