Detailed Explanation of Japan's Young Farmer Subsidy Policy

A while back I met up with Xiaofei in Taiwan, and we talked about how under Japan's new farmer program, newcomers to farming can receive 1.5 million yen a year, for up to five years. She immediately exclaimed, "Wow, how is it that good! Can you write about this?"

Earlier, Nami and Dajiang had gone to the agricultural cooperative and came back after asking, but since they were not yet applying, I just listened and let it go. Now this was a good chance to actually figure out these laws.

To be honest, really understanding policies and laws is genuinely very helpful on the path into farming!

The Young Farmer Settlement Grant system of 1.5 million yen per year

This "Young Farmer Settlement Grant system" that pays 1.5 million yen a year is one part of the "New Farmer Support Plan" proposed by the Ministry of Agriculture, Forestry and Fisheries. This support plan is divided into four major parts: securing income, learning skills and management ability, introducing machinery and facilities, and securing farmland along with providing advice at the time of entering farming.

Farming used to be passed down from generation to generation, but because industry and commerce developed rapidly after the war, many rural residents moved to the cities, creating the predicament of having no successors. But it also gave us the opportunity to go into farming.

Thinking about it carefully, starting from zero, the threshold for farming is actually very high. It requires enough land, and it also requires specialized skills. If you are a professional farmer, and not just growing a self-sufficient family vegetable garden, you also need farm machinery (rice farmers need a lot), materials, and also facilities such as greenhouses (in Taiwan it should be net houses?). According to surveys, new farmers need to spend at least 5 million yen before production becomes stable. Also, what revenue do ordinary new farmers hope for? The friends I know in the Nagano new farmer group "Shinshu Pu Group" all hoped at minimum to reach the average annual income of Japanese office workers.

These new farmers are mostly in their thirties and forties, the backbone of society, and it is not unreasonable to demand this level for themselves. Although the average annual income of Japanese office workers has shown a declining trend in recent years, in Heisei 24 (2012) it was still 4.08 million yen on average. If one wants to reach an annual profit of 3 to 4 million yen (average monthly income of 250,000 to 330,000 yen), that means needing gross income of 6 to 8 million yen. But according to Nami, by the third year of farming, there are also many people whose gross income is only 2.5 million yen.

But farming cannot be rushed, especially since today's new farmers mostly want to practice pesticide-free or reduced-pesticide cultivation. It takes time for the soil and the crops to become familiar with each other, and you also need to slowly improve your own skills, and even more so build good relationships with the local community.

Therefore, the Ministry of Agriculture, Forestry and Fisheries' farming support plan can more or less help new farmers changing careers get through this awkward period.

The two most often mentioned should be these: the "Young Farmer Settlement Grant" and the "Agricultural Employment Program."

Young Farmer Settlement Grant

The Agricultural Employment Program subsidizes agricultural corporations that hire new employees. Last month, when a friend named Erika moved to Nagano and took a job at an agricultural corporation in Azumino, her boss planned to apply for this subsidy to pay Erika's salary. If I have a chance, I will ask her about it again.

The Young Farmer Settlement Grant pays 1.5 million yen a year and is divided into two types: the preparation type and the business startup type.

The preparation type is for trainees, in principle under 45 years old, who before formally entering farming are training at a government-approved farm household, agricultural corporation, or agricultural university, and can receive it for a maximum of two years.

Daren Farm, where I stayed for two years, also began using this program this year. Yugi, from Shizuoka Prefecture, who entered one year after me, wants to work at an agricultural corporation in the future, and Saki, from Iwate Prefecture, wants to return home to inherit his grandparents' rice paddies. This year, a full year of training for both of them can receive 1.5 million. They are both only in their twenties and have little savings, so without this program they would not be able to continue the second year of training.

The business startup type is for new farmers who are beginning to farm, and can be received for a maximum of five years.

In principle it is also for those under 45 years old, who are determined to make a living from agriculture (including agricultural product production, farm homestays, farm restaurants, processing and manufacturing, etc.) and who have a feasible plan. Of course, if within five years, after deducting the grant, an individual's annual income reaches 2.5 million yen, the payment will stop. If a husband and wife operate together, they can receive 1.5 times that, namely 2.25 million yen. In addition, there are also couples who each register separately as farmers and apply individually, and can each receive 1.5 million yen.

However, Mr. Doi, a senior new farmer who moved to Hata and has grown watermelons for ten years, said that if you are already thinking before you even start farming that you can receive the grant, that is a very dangerous thing.

In recent years he has seen too many young people who want to become new farmers. Perhaps they harbor a pastoral dream, perhaps they hold an ideal of changing society, but they lack a do-or-die determination. When faced with agricultural production that may not meet expectations and a sales business that is hard to expand, they often begin to hesitate and ask, why did I come to farm in the first place? Some then choose to give up.

The path to reaching a dream

I can understand what Mr. Doi is saying. The path to reaching a dream is to keep your feet on the ground, starting from one detail at a time: measuring the fields, pulling black agricultural film in strong winds, building neat tunnel frames, sharpening hoes and cleaning farm machinery, and step by step solidly building up your own skills, facing your crops directly, and truly understanding their essence.

Of course I also believe that resources that can be used should be used well, and you should not drive yourself into a corner. Not everyone can withstand such high pressure.

In addition, what matters more than money is actually local relationships.

Farmland in Japan is passed down from generation to generation, and rural places often will not lend land to strangers who have just arrived. This is also why we are not applying this year.

Blend well into the local area, and let the surrounding farm households know, ah, you young guys are serious, you are people who can be trusted.

The attitude that Mr. Doi conveys is the greatest asset.

In fact, recently, because of this, we have also formed ties with local farm households.

As for these stories, I will tell them another time if there is a chance.