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TLDR. The expert Kazuhito Yamashita argues: Japan is only producing about half of the rice it could potentially produce. This is due to government pol

TLDR. The expert Kazuhito Yamashita argues: Japan is only producing about half of the rice it could potentially produce. This is due to government policy that pays farmers not to grow to prevent falling prices. Argues in the current geopolitical climate with the potential of a food blockade, this policy should be abandoned. If abandoned, Japan will become one of the largest rice exporters which he argues is better for Japanese food security.

philipov 2y ago
It sounds like an XY problem. They don't want the price to fall because then farming wouldn't be profitable, but they're paying farmers to not profit off sales anyway. Instead of subsidizing half the farmers to do nothing, they should subsidize all the farmers, half as much, and allow the price to drop by half.
- k8wk1 2y ago
  The amount of annual subsidies is around $2 billion. It's a tiny number for a country as large as Japan. Their GDB is $4 trillion per year.
  - gruez 2y ago
    Anything is small if you choose a big enough denominator (eg. GDP). What's the total value rice production in japan? This source[1] values all agricultural output at $29B, which means rice subsidy alone is 6.9% of agricultural production. [1] https://en.wikipedia.org/wiki/File:Agricultural_output_Japan.svg https://en.wikipedia.org/wiki/File:Agricultural_output_Japan...
  - mistrial9 2y ago
    it is not a simple number.. people who operate business on the commodity scale, often have very low profits and therefore, have lower spending power economically.. in other words, lots of farmers tend to live close to a kind of poverty. Meanwhile, in the center of some kind of fast and loose economics, like entertainment for example.. lots of economic spending power is traded very quickly.. plenty of people in the entertainment industries do not live close to poverty at all.. Large economic systems in real life have economic niches. Government policy levers change the basic flow patterns.. it is often a matter of life and death
  - alephnerd 2y ago
    > The amount of annual subsidies is around $2 billion. It's a tiny number for a country as large as Japan. Their GDB is $4 trillion per year. Their Debt-to-GDP ratio is 263% (so around $9 trillion in debt), and the government's budget is only $1.2 trillion per year, so it becomes very difficult to maneuver, especially due to the increased Yen volatility. The current status quo keeps farmers happy and voting for the LDP, while continuing to fund Japan's very generous and very expensive welfare system that everyone loves. Mainichi is also the opposition newspaper and election season is approaching in Japan due to Kishida's scandals leading to his resignation.
Scoundreller 2y ago
Sounds like dairy in Canada. We basically have a taxi medallion system for milk. Result: high prices (basically a regressive tax), personal import limits that haven’t increased in 3+ decades, artificial barriers to entry (good luck becoming a dairy farmer unless you inherited a farm or take out a massive loan before even starting) & low per capita production for a country that could be a dairy exporting juggernaut. New Zealand is currently the biggest dairy exporter. Canada, despite being a massive agri-exporter for other products, not even in the top 15.
- codersfocus 2y ago
  This reminds me of restaurants a bit. You can price your menu high, such that it's mostly empty but sustainable. The other option is pricing things low, and having the tables always be full. But of course, the employees need to work more.
ForOldHack 2y ago
It is not. It is producing a two tier market. "As of January 2024, India was the world's largest rice exporter, shipping 16.5 million metric tons of rice. India's rice is known for its quality and aroma, and is shipped to many countries, including varieties like Basmati and non-Basmati. India's rice exports support millions of farmers and help the country's economy. " And India and Tialand are benefitting.

philipov 2y ago

It sounds like an XY problem. They don't want the price to fall because then farming wouldn't be profitable, but they're paying farmers to not profit off sales anyway. Instead of subsidizing half the farmers to do nothing, they should subsidize all the farmers, half as much, and allow the price to drop by half.

k8wk1 2y ago
The amount of annual subsidies is around $2 billion. It's a tiny number for a country as large as Japan. Their GDB is $4 trillion per year.
- gruez 2y ago
  Anything is small if you choose a big enough denominator (eg. GDP). What's the total value rice production in japan? This source[1] values all agricultural output at $29B, which means rice subsidy alone is 6.9% of agricultural production. [1] https://en.wikipedia.org/wiki/File:Agricultural_output_Japan.svg https://en.wikipedia.org/wiki/File:Agricultural_output_Japan...
- mistrial9 2y ago
  it is not a simple number.. people who operate business on the commodity scale, often have very low profits and therefore, have lower spending power economically.. in other words, lots of farmers tend to live close to a kind of poverty. Meanwhile, in the center of some kind of fast and loose economics, like entertainment for example.. lots of economic spending power is traded very quickly.. plenty of people in the entertainment industries do not live close to poverty at all.. Large economic systems in real life have economic niches. Government policy levers change the basic flow patterns.. it is often a matter of life and death
- alephnerd 2y ago
  > The amount of annual subsidies is around $2 billion. It's a tiny number for a country as large as Japan. Their GDB is $4 trillion per year. Their Debt-to-GDP ratio is 263% (so around $9 trillion in debt), and the government's budget is only $1.2 trillion per year, so it becomes very difficult to maneuver, especially due to the increased Yen volatility. The current status quo keeps farmers happy and voting for the LDP, while continuing to fund Japan's very generous and very expensive welfare system that everyone loves. Mainichi is also the opposition newspaper and election season is approaching in Japan due to Kishida's scandals leading to his resignation.

Scoundreller 2y ago

Sounds like dairy in Canada. We basically have a taxi medallion system for milk. Result: high prices (basically a regressive tax), personal import limits that haven’t increased in 3+ decades, artificial barriers to entry (good luck becoming a dairy farmer unless you inherited a farm or take out a massive loan before even starting) & low per capita production for a country that could be a dairy exporting juggernaut. New Zealand is currently the biggest dairy exporter. Canada, despite being a massive agri-exporter for other products, not even in the top 15.

codersfocus 2y ago
This reminds me of restaurants a bit. You can price your menu high, such that it's mostly empty but sustainable. The other option is pricing things low, and having the tables always be full. But of course, the employees need to work more.

ForOldHack 2y ago

It is not. It is producing a two tier market. "As of January 2024, India was the world's largest rice exporter, shipping 16.5 million metric tons of rice. India's rice is known for its quality and aroma, and is shipped to many countries, including varieties like Basmati and non-Basmati. India's rice exports support millions of farmers and help the country's economy. " And India and Tialand are benefitting.