The Role of Government in Agricultural Investments : A Study on the Development of Rural Infrastructure Improvement Projects in Japan

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  • Sun Tanzhen
    Seminar of Econometric Analysis in Agriculture，Faculty of Agriculture, Kyushu University
  • Tashiro Shoichi
    Seminar of Econometric Analysis in Agriculture，Faculty of Agriculture, Kyushu University

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  • 農業資本形成における政府の役割 : 農業基盤整備事業に関する一考察
  • ノウギョウ シホン ケイセイ ニ オケル セイフ ノ ヤクワリ ノウギョウ キ

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Abstract

Infrastructure investment in rural areas is an essential condition to the modernization of conventional farming. From this viewpoint, the paper deals with the development of Rural Infrastructure Improvement Projects in Japan. The main findings of this study can be summarized as follows. In Japan, the investments in rural infrastructure have been carried out under Agricultural Structure Improvement Projects (ASIP) and Land Improvement Projects (LIP). Since ASIP were put into practice, a noticeable improvement has been achieved in various spheres in farming, among which are the introduction of new technique, the rise of productivity, the fostering of viable family farms, the expansion of some profitable branches of agricultural production, and the reorganization of regional farming. On the other hand, LIP gave much influence on the increase of agricultural production, the reduction of irrigation costs, the saving of farm labor, and the rise of agricultural productivity, etc. About 70% of the total cost of both ASIP and LIP has been subsidized by the central and local governments, and the rest has been mainly financed through “seido-kinyu" (the long term and lower interest rate roans). If the agricultural investment were left to individual farm households, such large and effective investment as mentioned above could not have been attained. On this point, a leading role of the government is recognized.

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