JAPAN Law and Practice Contributed by: Eri Hirata, Takunori Kono, Naoki Matsumoto and Ikki Kawasaki, Nishimura & Asahi
by a Corporation Qualified to Own Cropland for 150 days or more per year. Agricultural actors are assumed to be individuals, with some exceptions (such as local governments and agricultural co- operatives). • Director requirements – the majority of directors must be Persons who Regularly Engage in Agricul- tural Business. • Farmwork requirements – a Person who Regularly Engages in Agricultural Business or an employee who has authority and responsibility for the agricul- ture undertaken by the corporation must engage in its farmwork for a certain period (in principle, 60 days or more per year). A Corporation Qualified to Rent Cropland must have: • a written contract that contains conditions for cancellation of the lease where it is found that the cropland is not being used properly after acquisi- tion of the rights; • the prospect of engaging in agricultural manage- ment continuously and in a stable manner, with an appropriate sharing of agricultural roles with other farmers in the area; and • one or more directors who carry out the business of the corporation, or employees who have author- ity and responsibility for the business of cultivation carried out by the corporation as Persons who Regularly Engage in Agricultural Business. The Act on the Promotion of Improvement of the Agricultural Management Foundation This Act implements comprehensive measures: • to promote the strengthening of bases of agricul- tural management, such as the concentration of cropland use in those who improve agricultural management and the rationalisation of business management; and • to foster efficient and stable agricultural manage- ment. Specifically, the Act establishes the following systems, and it is desirable to consider whether each of these systems can be used when implementing agribusi- ness in Japan.
• Certified Farmer System – a system in which municipalities: (a) approve plans for farmers to improve their management, based on their own ingenuity; and (b) give priority to supporting measures for those Certified Farmers. • Certified Newly Employed Farmers System – a system in which municipalities: (a) approve plans for young people who are attempting to engage in agricultural manage- ment as a new endeavour to establish a foun - dation for agricultural management; and (b) give priority to supporting measures for those Certified Farmers, such as lending them interest-free funds. • Certified Management Development Corporation System – a system in which the MAFF: (a) approves plans for Corporations Qualified to Own Cropland to develop agricultural manage- ment through collaborative measures with food businesses, through investments; and (b) relaxes voting requirements for certified Corpo- rations Qualified to Own Cropland, in order to strengthen the management base of Corpora- tions Qualified to Own Cropland. Other applicable laws and regulations There are a number of other applicable laws and regu- lations, including the following. General agriculture • The Basic Act on Food, Agriculture and Rural Areas governs not only agriculture, but also the policy goals of the national government, local govern- ments, farmers and consumers with regard to “the stable supply of food” and the ideal state of agriculture and rural areas, including “the exercise of multi-faceted functions such as flood control and environmental conservation through agricul- tural activities” and “the sustainable development of agriculture”. Crops • The Soil Fertility Enhancement Act is a law designed to optimise the labelling of the quality of soil improvement materials (peat, charcoal, zeolite, etc). The purpose of this law is to promote agricul-
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