JAPAN Law and Practice Contributed by: Eri Hirata, Takunori Kono, Naoki Matsumoto and Ikki Kawasaki, Nishimura & Asahi
3.2 Foreign Ownership Restrictions There are no regulations directly restricting the owner- ship of cropland by foreign nationals or foreign cor- porations. However, in reality, it is difficult for foreign nationals who reside overseas, or for foreign compa- nies, to acquire cropland because: • in principle, only Corporations Qualified to Own Cropland that are Japanese corporations can acquire or own cropland; and • individuals need to be regularly engaged in farm- work on cropland in order to own the cropland. Since 2017, there has been only one instance of cropland being acquired by inheritance by a foreign resident, and that case involved only 0.1 hectare of cropland. However, it is possible for foreign nationals residing overseas, or for foreign corporations, to become a shareholder or director of a Japanese corporation that acquires cropland, for foreign nationals who reside in Japan to acquire cropland, or for foreign nationals who reside in Japan to become a shareholder or direc- tor of a Japanese corporation that acquires cropland. That said, in recent years there has been a trend towards stricter regulations governing these issues, from the perspective of economic security. Specifi- cally: • since 2023, the nationality of the person who intends to acquire cropland must be stated in the application for permission when acquiring owner- ship of cropland; and • starting in 2025, the period of stay and the date of expiry of the period of stay of the person who intends to acquire cropland must be stated in the application for permission. It would therefore be difficult for a person with only short-term residence or a short period of stay to acquire cropland. 3.3 Environmental Requirements The environmental laws and regulations applicable to agribusiness vary by industry. The primary ones are as follows.
Food Sanitation Act (Positive List System for Residual Agricultural Chemicals) Under the Food Sanitation Act, a Positive List System has been adopted, which prohibits the sale of foods that contain in excess of a certain amount (as of 25 November 2025, the “uniform standard” is 0.01 parts per million, or ppm) of specified substances that are ingredients in pesticides, feed additives and animal health products, for which there are no standards for food ingredients (“residue standards”). Substances designated by the Ministry of Health, Labour and Wel- fare, such as zinc, iron and iodine, are excluded from the target substances that appear on the Positive List. Two types of cases are subject to the Positive List System: those in which pesticides or other substanc- es for which no established residue standards exist are left in foods, and those in which pesticides or other substances for which established residue standards exist are left in foods for which there are no estab- lished residue standards. It is necessary to comply with the residue standards for the specified product. Agricultural Chemicals Regulation Act In accordance with the Agricultural Chemicals Regula- tion Act, agribusinesses must comply with the stand- ards of time and method of use of agricultural chemi- cals established by the MAFF and the Minister of the Environment. Water Pollution Prevention Act Pig, cattle and horse livestock farming facilities oper- ating at levels above a certain scale qualify as “Speci- fied Facilities” subject to the Water Pollution Preven- tion Act. The operator of a Specified Facility may only discharge wastewater if this complies with relevant effluent standards, and must also comply with the Standards for Controlling Total Emissions, where these apply. Act on Waste Management and Public Cleaning Typical industrial waste and examples of that waste that may arise in agribusiness include: • sludge; • waste oil (engine oil for agricultural machinery, remaining fuel, etc);
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