Estimations of Economies of Scale for Rice Farming in Hokkaido

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  • 北海道稲作の規模の経済性の計測 : 食糧管理法廃止以降を対象に
  • ホッカイドウ イナサク ノ キボ ノ ケイザイセイ ノ ケイソク : ショクリョウ カンリホウ ハイシ イコウ オ タイショウ ニ

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This paper examined the economies of scale of rice farming in Hokkaido using a translog cost function. The results showed that even though rice farming operations in Hokkaido have maintained economies of scale of over 15 ha, when the low price of Hokkaido-grown rice was taken into account it became clear that rice farmers have continued to operate at a deficit. The estimates also showed that even if smaller economies of scale were introduced, rice farming would still not turn a profit. To resolve this dilemma, the best approach would be to aim at achieving rice prices found elsewhere in Japan by improving quality through R&D and other counter measures.

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