Rice Sector Policies in Japan

Overview

This report provides a detailed description and analysis of policies used by Japan to support its rice producers. Domestic policies include a program offering compensation to farmers when market prices fall below specified targets, subsidized hazard insurance, and subsidies to increase the size of farm operations. At the border, a tariff-rate quota is administered by a government state-trading enterprise, which can apply markups to imported rice prices when it sells the rice inside Japan. To counter overproduction of rice, the government funds a diversion program that pays farmers to plant other crops on a third of the rice paddies. If Japan's policies were liberalized, production and/or prices of japonica rice outside Japan would rise, while prices would fall in Japan.