Farm Entry by a Non-Agricultural Business Corporation and It’s Future

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  • 企業による農業ビジネスの実践と課題
  • シンポジウム論文 企業による農業ビジネスの実践と課題
  • シンポジウム ロンブン キギョウ ニ ヨル ノウギョウ ビジネス ノ ジッセン ト カダイ

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Abstract

The purpose of this presentation is to introduce the developing processes of First Farm Corporation, a leading company that entered agriculture from the non-agricultural sector in Uragawara district, Joetsu city, Niigata prefecture, where it snows heavily and farm land is located in hilly and mountainous areas. First Farm Corporation was one of the first companies that entered agriculture in 2003 by using the “special district” system, which was established by the government to ease regulations associated with farm land use and acquisition. Because the special district system was a new attempt and such districts were normally approved in less-favored areas, there were some initial technical difficulties and anxieties among local communities. However, thanks to cooperation with local communities (e.g. via elementary schools and agricultural cooperatives), First Farm Corporation climbed into the black in 2008, when the business expanded into a ranch for tourists, cheese and butter making from goat milk, and rice cropping for Japanese sake. For a business like First Farm Corporation to succeed, it is necessary to 1) reconsider land rents and crop rotations because farm land that is allocated to a business entrant from the non-agricultural sector tends to be in less-favored areas and 2) establish a governmental or cooperative system to stabilize cash flow, which is especially volatile during the initial stage. From a social viewpoint, it might be necessary to introduce some regulations for the business not to abandon the less-favored areas that it owns or uses, so that the areas could be kept as well managed by business corporations.

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