This article was finalized from the original text of the lecturing speech by the author at the symposium of the 1987 annual convention of the Agricultural Economic Society of Japan which was held on April 2, 1987 in the Kyushu University campus in Fukuoka City.

　Agricultural policy of Japan, especially its agricultural trade policy, is under a harsh criticism from the Japanese trade partners such as the United States as well as from the domestic non-farm sector. As one of the super powere, Japan faces various pressures, regarding its traditional agricultural protection policies, toward lower support, more open-market, and freer competition-oriented farm system. Under such pressures from outside and also inside, the Japanese government has already decided to lower the agricultural support level and to liberalize more the rice distribution system with further reduction of the rice acreage.

　Japan has proceeded internationalization of its national economy mainly through import liberalization of many commodities including farm products since participating GATT in 1950. Through Japan's internationalization the United States has had the vital importance to press the Japanese government to adopt import liberalization policies, because she has special relationship, especially in the field of defense and economy, with Japan. In 1973, however, when the World Food Crisis took place, the Japanese Internationalization policy in agriculture was reversely affected, and a food security policy or a more self-sufficiency policy was adopted with the overwhelming support from the public. Since then agricultural liberalization has been discouraged and increased domestic production has been promoted.

　Now the Japanese government is returning to the former cours of internationalization policy in agriculture under a new international and domestic circumstance.

　My parents worked under landlord Fujita in Okayama before World War Ⅱ.

　After the land reform, my father became small owner farmer with only 1.2 ha. Although, I was student of Osaka Technical College in those days, I succeeded my father as “peasant.” Then, I planned my own way of “peasant to large farmer.” I would like to give you my opinions on my way of “peasant to farmer.”

　Today, I am “farmer,” and manage farm land of 30 ha including the leased land, with my wife and son.

　Japanese agricultural system is not competitive. It is protected heavily. However it is wrong to judge that Japanese agriculture cannot be internationally competitive. It has a potential to compete, but its competitiveness is reduced by the governmental intervention. It is important to change Japanese agricultural policy toward competition oriented. It should promote Japanese farmers to compete, also make them adapt to changes in social and economic conditions. Especially it is important to reform “Shokkan Seido” (Food Control Act of 1942). Such deregulation and pro-competition policy will make Japanese agriculture more competitive and attractive.

　The research and development for agriculture is also important. Together with the pro-competitive policy, it is essential to establish some means of promoting the R&D. If these conditions are met, Japanese agriculture will be able to compete without protection. the future of Japanese agriculture looks very bright.

　The Agricultural Policy Council has submitted the report, “Basic Direction of Agricultural Policy Toward the 21st Century” last November, which follows the report, “Basic Direction of Agricultural Policy in the 1980's” in October 1980.

　The subjects particularly emphasized in the latter are as follows: 1) The important role of food industry as well as agriculture in terms of stable food supply to the people. 2) The need to ensure food security. 3) Promotion of Japanese type dietary life.

　The subjects particularly stressed in the new report are as follows: 1) Establishment of high-productivity paddy-field farming. 2) The need to supply food at prices acceptable to the people. 3) Establishment of agriculture as a self-reliant industry. In addition, this report mentions new points such as the relation between aging society and agriculture, the role of women in the rural society and so on.

　Some recent criticism against agricultural policies is based upon the wrong judgment of the facts. For example, one insists that the land price is raised because agriculture does not supply enough land. However, land supply from agricultural sector is enough.

　Toward the 21st century, it is essential to take into consideration the basic and multilateral roles of agriculture when conducting the agricultural policies. It is furthermore important to make Japanese people and foreign people recognize the real picture of Japan's agricultural policy.

　Japanese economy has been heavily involved in the international economy since the 1960's, but the impact to the world economy has become dramatically big since the 1970's. The difference is thus: in the 1960's, Japanese economy made itself involve in willingly but was forced to be open to the world exporters unwillingly. In the 1970's and 1980's, the main industries leading Japanese economy have willingly rushed, entered to the world economy and exported lots of products, while they made Japanese market more open to the exporters of the Western countries, not only in terms of volume of import but also item numbers of free import.

　Under these circumstances, Japanese agriculture, which looks much less competitive, is facing the big difficulty, whether it can survive or fade out through competition with imported ones.

　If the adequate policies would not be adopted, I am convinced that Japanese agriculture will gradually lose its position. In order to let Japanese agriculture survive, the following targets and points should be introduced into the agricultural policies.

　1) Japanese Government should declare clearly its necessity of food self-sufficiency and specify the tolerable lowest rate of food self-sufficiency, acquiring consensus and support of Japanese people. The policy includes specification of the necessary level of total farmland acreage and labor forces, so that it can maintain food self-sufficiency.

　2) Government is expected to declare which items of farm products markets should never be open to import, and set the time schedule when the non-strategic items will make their markets open.

　3) The region-oriented policy should be introduced to the present agricultural policy which has been effective equally throughout Japan, just like the rice price support and set aside programs.

　4) “Reconstruction of farm structure” policy should be focused, not on the farm family units, but on the fulltime farmer units.