Some of Realistic Contents of the New "Fundamental Law"

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Some of Realistic Contents of the New "Fundamental Law"

The law requires, first of all, the establishment of a basic plan. The "Fundamental Law" is in a way a declaratory law, which may come to nothing unless operative elements are written in. The law requires, straightforwardly. the promulgation of the fundamental plan, which includes a ten-year forecast and a review every five years as basis on which certain amendments may be adopted.

The law also requires guidelines and implementation plans to be included. The crucial section is Article 15, Section 2, Paragraph 2 which sets the target level for the food self-sufficiency rate. This legislation has been developed, in response to the increasing anxiety among consumers and agricultural practitioners, as an integral part of the law regarding the food self-sufficiency rate.

The food self-sufficiency objectives will require continuous effort. The new law will serve as a guide for both consumers and farmers regarding the balance between domestic production and consumption, with the operations worked out by both consumers and farmers through the market mechanism. The law centers on the three pillars - food, agriculture and agricultural communities .

1. Food: policy for food security

This policy was developed by putting the interests of consumers uppermost. Its implementation must deal with such matters as food safety, quality improvement, labeling of food contents and appropriate handling of recombined DNA food. Food policy also includes drafting guidelines for health dietary habits, to assist the public toward developing healthy dietary habits with domestically produced food, enhancing food self-sufficiency.

2. Policy toward sustainable agricultural operation
The following three points are relevant issues regarding the formation of agricultural policy.

1) Building a desirable agricultural structure
A model of efficient and stable management of agricultural operations must be developed, and the structure of the agricultural industry should be the one that can accommodate such a management regime. In order to implement such a regime, it is very important to put in place a structural framework where the creativity of agricultural operators can be reflected in the management of agricultural operations. At present, 90% of agricultural operations are family operations. However, we feel it is almost inevitable that it is necessary to take advantage of a scale merit to make these small operations more efficient and profitable, which will require expanding the current operations into those much larger in size, changing the operating entities into corporate organizations. This transformation requires legislative changes to legalize the ownership of farm lands by corporations. There is legitimate concern over such change, and we are currently developing plans exonerate such anxieties.

2) Comprehensive review over the pricing policy
Pricing structure must reflect both market dynamics and a policy that enables stable economic management of agricultural operations in Japan. It has been pointed out that agricultural pricing policy has been set to sustain farmers, without taking into consideration the interests of consumers, so farmers have had no incentive to develop a more rational entrepreneur mentality. The pricing policy definitely needs to reflect market factors. However, an abrupt shift to such a market economy may prove be too hazardous for the small individual farmers whom we are trying to help. Appropriate consideration must be given to assure that they will be managerially viable throughout the transition period.

3) Protection and promotion of one agricultural function
: to sustain and recycle the natural environment The handling of fertilizer and agricultural chemicals must be cautious and appropriate in order to retain this function particular of agricultural operations, and the key focus must be the retention and strengthening of healthy, fertile soil. It is our firm conviction that the balance between the environment and agricultural operations is crucial to continues, sustainable agricultural operations.

3 Agricultural community, policy toward community promotion
Depopulation in agricultural communities is particularly severe in mountainous areas, where farming is rapidly diminishing, in terms of the scope of operations. Some countermeasures now under consideration includes "direct payments" as practiced in Europe under the name "de-coupling." The aim of direct payment as introduced in the mountain areas is to encourage farmers not to give up, focusing on the value of the multi function aspects of agricultural operations. The plan is under final consideration by a committee of academics and practitioners with hopes of putting it into operation by the year 2000.

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