In recent years Japan has experienced a rapid growth of industry, and the percentage growth of the GNP has renewed its remarkable record. So many changes have occured in various sides of society, also in agricultural mechanism and its relations. The paper is to research the back-ground of the change of agricultural policy and, as the result, to make clear the differenciation of peasantry and agricultural structure under the state-monopolycapitalism in Japan. After the World War II, the working population in agriculture has been on the decrease, being a peak in 1953-55. The decrease itself is a result of the development in agricultural productivity; however, it shows not only the effect of the economic law but the important questions in relation to agricultural department with the structure of reproduction of national economy in Japan. In 1970, agricultural income was accounted for only 5.5 percent of all national income, though the working population in agriculture was 16 percent of all. The facts means the discriminative relation with allocation of income between different departments of economy, being unfavourable for agriculture. Income differentials between industry and agriculture has been expanded, and this tendency has been aggravated in the past 15 years. However, agricultural income is affected by harvest and the price of agricultural products, especially the level of the price of rice guaranteed by Government. If productivity of rice crop increases or its price is pulled up with policy, such differentials must diminish as the fact in 1967 (agricultural income for each person being accounted for 87% of one in industry in comparison with 62% in I960). Since 1963, the rate of the rise in the price of rice has been checked with policy and, as the same time, Government reduced the yield of rice crop on account of its overproduction. So differentials became greater than the level in 1960. As the result, the outflow of labour from rural communities expanded, many peasants had to have side-jobs, and the "self-sustenance peasant" in rice crop branch decreased rapidly. This facts show a failure of the agricultural policy based on the "Agricultural Basic Law", which was to bring up the "self-sustenance peasant" for improvement of agricultural structure in Japan. In this way, agricultural policy turned over and came to use part-time peasants as cheap labour in the differenciation of peasantry. And next, so-called "Co-Ordinative Policy in Agriculture" came to the stage because of following reasons: (1) to correspond the yield of agricultural products with suitable demand in our courtry and to regulate their price. (2) to make the agricultural policy combine with new conditions made by rapid growth of industry in Japan. But we can not but point out that this " Co-Ordinative Policy in Agriculture " is, in fact, to sustain the system of cheap labour at this stage of our country, using peasants who are going to break away from peasantry and down to the real proletariat. So for, drafters has usually asserted on the agricultural policy, in conventional way, to cheapen the market price of food with increasing the efficiency and import, while promoting the policy for the "self-sustenance peasant" to balance agriculture with industry. But in this "Co-ordinative Policy in Agriculture", new drafters are to keep cheap labour in the form of peasant with side-jobs and to take utilization of land in cheap price for capitalist (e. g. reutilization of irrigation canals to industrial reservoirs). On the other hand, we know that the "co-ordinative agricultural policy" is also promoted with pressure from U. S. A. on account of the reserve in foreign currency and import of agricultural products in our country. The rise in the price of land is never a cause of the failure of "improvement of agricultural
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