Deregulation effect of domestic rice market by econometric approach

Research Project

Project/Area Number	02301099
Research Category	Grant-in-Aid for Co-operative Research (A)
Allocation Type	Single-year Grants
Research Field	Agro-economics
Research Institution	Hokkaido Univeristy
Principal Investigator	KUROYANAGI Toshio Hokkaido University Faculty of agriculture Professor, 農学部, 教授 (90001403)
Co-Investigator(Kenkyū-buntansha)	HASEBE Tadashi Tohoku University Faculty of Agriculture Lecturer, 農学部, 講師 (10125635) KAI Satoshi Kyusyu University Faculty of Agriculture Associate Professor, 農学部, 助教授 (70038313) KAKO Toshiyuki Kobe University Faculty of Agriculture Associate Professor, 農学部, 助教授 (00121533) ISHIDA Masaaki Mie University Faculty of Agriculture Associate Professor, 生物資源学部, 助教授 (80144228) KADA Ryohei Kyoto University Faculty of Agriculture Associate Professor, 農学部, 助教授 (90111947)
Project Period (FY)	1990 – 1991
Project Status	Completed (Fiscal Year 1991)
Budget Amount *help	¥5,300,000 (Direct Cost: ¥5,300,000) Fiscal Year 1991: ¥2,500,000 (Direct Cost: ¥2,500,000) Fiscal Year 1990: ¥2,800,000 (Direct Cost: ¥2,800,000)
Keywords	Deregulation of domestic rice market / Structure of rice production / Structure of rice consumption / large-scale rental farming / Regional economy / 米価の低下 / 米の需要 / 中村 / 銘柄米 / 米生産構造 / 米消費構造 / 米流通構造
Research Abstract	1. The following are the effects of a decrease in the farm gate price of rice in Japan : (1) On a national scale, the reduction in farm gate price of rice will cause agricultural production, agricultural income, and NNP to decrease. On the other hand, such reduction of the price is expected to lead to a decrease in consumers price. (2) With reference to rice production structure in Japan, the number of small-scale fams will decrease even if the degree of price decrease is small. Consequently, the more the price decreases the greater will be the decrease in the number of rice farms. (3) The tendency to maintain the rice production for personal or household corisumption will persist even if the rice farm size is contracted. (4) Accordinig to the regional input-output table analysis for Kyushu, the reduction effect of the farm gate price of rice will expand the number of influential industries. In the order of the industry taking the greatest effect, those industries are manufacturing, construction, service, agriculture, forestry and fishery. (5) The decline in the desire of rice production individual farm level farms will be a big obstacle for the formation of organize dproduction and the development of agricultural villages. 2. The reduction of the rice consumers price will lead to more increase of the demand for higher qualities of rice. 3. The following can be carried out as countermeasures to the domestic deregulation of rice market : (l) the promotion of compound or complex farming and the general improvement of farm management in case of small reduction of rice price. (2) the increase of large-scale farms in terms of land rental farming. (3) the greater emphasis on rice marketing strategy. The findings described above mean that the domestic deregulation effect in the case of a rather large reduction of the farm gate price has large negative effects to considerable extent, to Japanese agriculture.