The purposes of this study are firstly, to review the Rice Policy Reform (2004 2009 FY), secondly, to characterize the transition form the Rice Policy Reform to the Pilot Program for Direct Payment of Income Support, and thirdly, to consider further policy implications based on the examination of the results of the latter program. The Rice Policy Reform was a policy package to reduce governmental commitments for preventing oversupply and relieving the decline of rice prices. However, its income stabilization program for selected farmers couldn't compensate them for the decline of rice prices. As a result, the strengthening of paddy farming structure, which was one of the most important aims of the Reform, couldn't be achieved. The Pilot Program for Direct Payment of Income Support, started in 2010 FY, succeeded the previous policies in its aspects of making the rice production control program selective, and coped with the decline of rice price exclusively through income stabilization measures. On the other hand, the production supports for food rice and other strategic crops on paddy fields were coupled with their planted areas and applicable to all farmers. These aspects are discontinuous from the previous policies. The 2010 rice price was much lower than the previous year, mainly because of oversupply due to the selective production controls and weakened consumers purchasing power. The government inevitably decided to implement some price support measures, as well as the Program's income stabilization payment, which worked as a deficiency payment. As a result, the economic ability of larger farms to rent more paddy field seemed improved. These facts imply the necessity for rebuilding an effective rice production control system and stable price supports, along with deficiency payments for the full-dressed Program for Direct Payment of Income Support.
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