Wheat Outlook No. (WHS-04I01) 21 pp

November 2004

Wheat and Barley Policies in Japan

This report provides a detailed description and analysis of policies used by Japan to support its wheat and barley producers. Domestic policies include direct payments for production, subsidies to plant wheat and barley on diverted rice paddies, subsidized hazard insurance, and subsidies to increase farm size. At the border, a tariff-rate-quota is administered by a government state-trading enterprise, which applies markups to imported wheat prices when it sells the wheat inside Japan. The proceeds are used to fund the direct payments made to Japan's farmers. If Japan's policies were liberalized, production in Japan would fall, but consumers and taxpayers in Japan would reap large gains.

Keywords: Japan, wheat, barley, barley malt, policies, domestic support, trade, trade liberalization, state trading, quota, tariffs, AMS, aggregate measurement of support

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