Japan to replace paddy support payments with productivity-based subsidies from 2027

• Japan to replace acreage-based paddy payments with productivity-linked support from FY2027.
• Food-service rice to gain subsidy eligibility, alongside continued crop diversification support.

 Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) has announced a major reform of its paddy field support programme, replacing the existing Paddy Field Support Payment with a Productivity-Based Support Payment from fiscal year 2027. The move represents a shift from area-based subsidies toward incentives linked to productivity and efficient land utilization.

Productivity to become the primary focus

Under the new framework, government support will place greater emphasis on productivity improvements and sustainable use of paddy fields rather than simply maintaining cultivated area. The reform is intended to strengthen Japan’s domestic food production capacity while improving the efficiency of agricultural support programmes.

Food-service rice added to support programme

A key feature of the reform is the inclusion of table rice supplied to food-service operators and ready-to-eat meal manufacturers under the subsidy programme. The expansion is designed to encourage stable domestic production for commercial food demand that was previously outside the scope of direct support payments.

Crop diversification support continues

Support for alternative crops grown on paddy fields—including wheat, soybeans and feed crops—will continue under the revised programme. However, payments will increasingly be linked to productivity and farm performance rather than acreage alone, encouraging more efficient use of agricultural land.

Food security remains a priority

The policy reform aligns with Japan’s broader objective of strengthening domestic food security and improving the resilience of its agricultural sector. By rewarding productivity and expanding support to additional rice-use segments, MAFF aims to create a more sustainable and market-oriented support system while maintaining stable domestic production.

Outlook

Japan’s policy marks a structural shift in its rice support framework, moving from acreage-based assistance to productivity-driven incentives. While the reform is unlikely to materially alter near-term rice trade flows, it is expected to encourage more efficient use of paddy land and support stable domestic production over the longer term. The programme’s effectiveness will largely depend on farmer participation and its ability to balance productivity gains with Japan’s broader food security and crop diversification objectives.