Rice agricultural policy in Japan is a turning point . October
24 , and the ( so-called set-aside policy ) adjust production to keep
the price squeeze the production of staple food rice , for individual
income security system for uniform subsidies to farmers , industrial
competitiveness meeting of government 3 was initiated discussions to review fundamentally with the aim of abolition of five years after years.
Set-aside policy in earnest began in 1970 the rice too much becomes remarkable , and distributed by dropping each prefecture , municipalities Ministry of Agriculture, Forestry and Fisheries has set up " production volume target " , and crop rotation in a way that is allocated to each farmer now I have urged and . In form , it is left voluntary decision of farmers , on management's judgment , but the form of influence peddling make full use of subsidies to production adjustments to be " asked to participate " is taken in fact .However, if it becomes a situation where inexpensive rice to flow into the domestic market in large quantities from abroad Pacific Economic Partnership Agreement , which aims to agreement of the year in the (TPP) negotiations , its existence is no longer the set-aside policy anymore . It is because of diminishing the maintenance of the rice market even after the much production adjustment in the country .For this reason , " we will review in the zero-based subsidies , increase the ingenuity and enthusiasm of farmers " in the form of ( reform proposals competitiveness meeting Agriculture Subcommittee ) , in parallel with the join TPP negotiations , the international competitiveness of the rice industry 's start moving in the direction of strengthening , it is a recent trend .While able to compete with foreign rice produced in rice production system of small farmers the center of the current is difficult , to promote the aggregation of large-scale farmers , that it encourage even the entry of private companies , the staple food rice commensurate with the demand at low cost the aim is to shift to system can produce , it is becoming a new flow of rice agricultural policy in Japan .Most , is a thunderclap of sunshine for agricultural groups that were told " rice sanctuary " and , in preparation for the fall in rice prices due to set-aside policy abolished , the government consider farmers for " premiums " the ( tentative name ) that you are has been demonstrated . In short , from the security of farm income due to subsidies , such as before , it will be based on the premium that farmers set aside their own , cut the rudder to the introduction of market principles to ensure a source of income due to the rapid fall in agricultural crops in the future .At a press conference on October 29 , Yoshimasa Hayashi , Minister of Agriculture, Forestry and Fisheries has expressed officially the idea of introducing such a revenue insurance system . Common mode , that you are making the request of 321 million yen budget budget request for 2014 already , for the stable management of the " actors " 10 -year strategy agriculture and rural income doubling goal " is a pledge of the Liberal Democratic Party introduces as well as that there is a statement that " to promote mutual aid incorporated by enhancement of the reduction measures to subscribers taking into account the current system of agricultural mutual aid is a safety net , promoting the introduction of new revenue insurance and , suggesting that it has been working to create an environment of set-aside policy after the abolition of behind the scenes from a relatively early stage .For more information on this income insurance system has not been disclosed, but need to consider " enough " Based on the data of the past , you go to what level such Fu the insurance or insurance premiums "for forest Agriculture Minister on you and " some , it is predicted that with the " will require a period of " constant. The Nihon Keizai Shimbun 29 October , it has been reported, " there is also a possibility that the country is involved in the management of the system . Encourage the self-help efforts of farmers in policy just not turn on the government-sponsored " he said.
Set-aside policy in earnest began in 1970 the rice too much becomes remarkable , and distributed by dropping each prefecture , municipalities Ministry of Agriculture, Forestry and Fisheries has set up " production volume target " , and crop rotation in a way that is allocated to each farmer now I have urged and . In form , it is left voluntary decision of farmers , on management's judgment , but the form of influence peddling make full use of subsidies to production adjustments to be " asked to participate " is taken in fact .However, if it becomes a situation where inexpensive rice to flow into the domestic market in large quantities from abroad Pacific Economic Partnership Agreement , which aims to agreement of the year in the (TPP) negotiations , its existence is no longer the set-aside policy anymore . It is because of diminishing the maintenance of the rice market even after the much production adjustment in the country .For this reason , " we will review in the zero-based subsidies , increase the ingenuity and enthusiasm of farmers " in the form of ( reform proposals competitiveness meeting Agriculture Subcommittee ) , in parallel with the join TPP negotiations , the international competitiveness of the rice industry 's start moving in the direction of strengthening , it is a recent trend .While able to compete with foreign rice produced in rice production system of small farmers the center of the current is difficult , to promote the aggregation of large-scale farmers , that it encourage even the entry of private companies , the staple food rice commensurate with the demand at low cost the aim is to shift to system can produce , it is becoming a new flow of rice agricultural policy in Japan .Most , is a thunderclap of sunshine for agricultural groups that were told " rice sanctuary " and , in preparation for the fall in rice prices due to set-aside policy abolished , the government consider farmers for " premiums " the ( tentative name ) that you are has been demonstrated . In short , from the security of farm income due to subsidies , such as before , it will be based on the premium that farmers set aside their own , cut the rudder to the introduction of market principles to ensure a source of income due to the rapid fall in agricultural crops in the future .At a press conference on October 29 , Yoshimasa Hayashi , Minister of Agriculture, Forestry and Fisheries has expressed officially the idea of introducing such a revenue insurance system . Common mode , that you are making the request of 321 million yen budget budget request for 2014 already , for the stable management of the " actors " 10 -year strategy agriculture and rural income doubling goal " is a pledge of the Liberal Democratic Party introduces as well as that there is a statement that " to promote mutual aid incorporated by enhancement of the reduction measures to subscribers taking into account the current system of agricultural mutual aid is a safety net , promoting the introduction of new revenue insurance and , suggesting that it has been working to create an environment of set-aside policy after the abolition of behind the scenes from a relatively early stage .For more information on this income insurance system has not been disclosed, but need to consider " enough " Based on the data of the past , you go to what level such Fu the insurance or insurance premiums "for forest Agriculture Minister on you and " some , it is predicted that with the " will require a period of " constant. The Nihon Keizai Shimbun 29 October , it has been reported, " there is also a possibility that the country is involved in the management of the system . Encourage the self-help efforts of farmers in policy just not turn on the government-sponsored " he said.
The rice futures trading than revenue insurance
However
, If you want to do to respond to the rice price decline such risks ,
it is not necessary , such as creating a complex new system and "
premiums " in particular . This is because a sufficient use are traded in Osaka Dojima Commodity Exchange " rice futures trading " . Currently,
the Osaka Dojima Commodity Exchange are traded rice futures trading of
two parallel with "Tokyo rice " and " Osaka rice " . "Tokyo
rice " are things that standard Koshihikari Kanto production ( Ibaraki ,
Tochigi, Chiba Prefecture ) , trade is conducted in (6,000 kg) unit 100
bales , 200 bales ( 10 000 2,000 kg) transfer of monetary is also possible in the unit . "Osaka
rice " are things that standard Koshihikari of Hokuriku ( Ishikawa ,
Fukui Prefecture ) , trade is conducted in (3,000 kg) per 50 bales of
smaller is this one , also transfer of monetary it is done in 50 bales unit . When
it is the case of September this year , 30 000 kg Fukushima Koshihikari
3,000 kg, Chiba Prefecture Akitakomachi etc. , Ibaraki Koshihikari 10
000 2,000 kg, 10,000 and 2,000 kg Chiba Koshihikari , and rice 57 tons
total actually physical delivery is carried out through the futures market . Of
course , hedging transactions with the fall - rising price of rice in
the form of net settlement in addition to this , such as speculative
trading is also done . So
if you prepare for rice price decline by set-aside policy abolished ,
it is common if a country of normal futures market has been in place ,
risk management to control losses due to price fluctuations in the rice
futures market takes place . Specifically
, by performing the " hedge selling " the futures market , it is
possible to cancel or reduce the price downside risk of physical
inventory , the use of inexpensive insurance function is never if rice
growers it is not difficult .
Rice futures, also large benefits for farmers of liberalization era
However
, for rice futures trading that results in the stabilization of rice
farm management , and JA Group is opposed to the listing itself of rice
futures from criticism " rice prices could be affected by the
speculative money futures trading if spreads " and originally abnormal
situation from the history you have , you've been opposed to test
-listed extension of two years was decided in August , price risk hedge
normal that the use of rice futures trading is not performed is
continuing . In
the future , from the logic of the producer rice price formation is
called " rough price " , in that it is the flow to shift to market
principles , the importance of rice futures trading should increase
significantly for producers . Rice
Wholesalers are a large number participate in the rice futures trading
already , participation of the producer if we also realized here ,
activation of rice futures trading should be expected from the
perspective of trading liquidity . Test
listing of rice futures trading and expires in 2015 , a possibility
that if it fails to expand the trading volume so far , the history of
rice futures trading that resurrection was revived 72 years in '11 much
trouble would cut off some . In
the future , rice price has been exposed to full market principle , the
worst-case scenario that only farmers in Japan can not be performed a
risk control using the futures market that can be used normally is
warning farmers of other countries . Rice
farmers , or aim for stable management using rice futures trading on
the left to the market forces to determine the rice price , or is aimed
at high induction of rice prices even to abandon the benefits of price
risk control by rice futures trading , it is approaching the time to make an important decision .