Evaluation and Prospects of Policies for Less Favoured Areas in Japan
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Since 2000, ‘The System of Direct Payment of Subsidies to Farmers in Hilly and Mountainous Areas’ is in operation in Japan. The objective of this paper is to evaluate and survey Japan’s policy for less favoured areas. This system has two characteristics: ‘coverage subsidies for disadvantage’ and ‘subsidies for rural community activation’. Given these characteristics, the subsidy system can be evaluated to have exhibited high effectiveness. I have statistically analyzed the outcomes of this system. But I conclude that it does not have a promising future because subsidies are inadequate for maintaining household finances of farmers.