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Rice Sector Policies in Japan By Hisao Fukuda, John H. Dyck, and Jim Stout Outlook Report No. (RCS0303-01) , March 2003 This report provides a detailed description and analysis of policies used by Japan to support its rice producers. Domestic policies include a program offering compensation to farmers when market prices fall below specified targets, subsidized hazard insurance, and subsidies to increase the size of farm operations. At the border, a tariff-rate quota is administered by a government state-trading enterprise, which can apply markups to imported rice prices when it sells the rice inside Japan. To counter overproduction of rice, the government funds a diversion program that pays farmers to plant other crops on a third of the rice paddies. If Japan’s policies were liberalized, production and/or prices of japonica rice outside Japan would rise, while prices would fall in Japan. Keywords: Japan, rice, policies, domestic support, trade, trade liberalization, state trading, quota, PSE, producer support estimate, AMS, aggregate measurement of support In this report ... Chapters are in Adobe Acrobat PDF format. Entire Report, 105 kb. web administration: webadmin@ers.usda.gov page updated: March 19, 2003

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