Japan farm ministry seeks ¥3.1 trillion for fiscal 2027

Japan's Ministry of Agriculture, Forestry and Fisheries finalized plans on the 26th to seek approximately ¥3.1 trillion ($19.5 billion) in its fiscal 2027 budget request, about 35% more than the fiscal 2026 initial budget of ¥2.2956 trillion ($14.4 billion). The centerpiece is a revamp of the direct payment subsidy for paddy field utilization, aimed at encouraging farmers to shift from rice to crops including wheat and soybeans as rice supply-demand conditions ease. Funding for these programs is expected to exceed the previous year's total request of approximately ¥350 billion ($2.2 billion), while unit prices and other institutional details are to be developed this autumn. Measures related to a possible food consumption tax reduction and the reformed paddy field policy are listed as itemized requests without specified amounts. The ministry says it intends to support small and micro-scale farmers facing potential revenue declines and the restaurant industry, which may see weaker customer traffic. The approach combines a stronger response to rising prices and worsening farm conditions with fiscal restraint by deferring amounts for consumption tax-related measures pending inter-ministerial coordination and government tax reform discussions.

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