Japan rice harvest begins amid falling farmer payments

Rice harvesting has begun across various regions of Japan, though farmers face a complex economic landscape. In Hiroshima Prefecture, particularly in Miyoshi City, the harvest has started approximately one week earlier than usual due to the effects of extreme heat, resulting in high-quality crops.

However, the agricultural sector is facing significant financial pressure. Following the period of rice shortages and high prices known as the ‘Reiwa Rice Riot’ between 2024 and 2025, a shift toward rice surpluses has caused a sharp decline in ‘estimated payments’ (gaisankin) made by agricultural cooperatives to farmers. In some areas, these payments have dropped by 30% to 40% compared to the previous year, with certain varieties in Aomori Prefecture seeing decreases as high as 47%.

This price drop occurs alongside high production costs driven by inflation. Combined with challenges such as an aging workforce and a lack of successors, there are growing concerns that these economic conditions may accelerate the rate at which farmers abandon their land.