Farm and Rural Community Management in Less Favored Areas [1st ed.] 9789811573514, 9789811573521

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New Frontiers in Regional Science: Asian Perspectives 44

Nobuyoshi Yasunaga Norikazu Inoue  Editors

Farm and Rural Community Management in Less Favored Areas

New Frontiers in Regional Science: Asian Perspectives Volume 44

Editor in Chief Yoshiro Higano, University of Tsukuba, Tsukuba, Ibaraki, Japan

New Frontiers in Regional Science: Asian Perspectives This series is a constellation of works by scholars in the field of regional science and in related disciplines specifically focusing on dynamism in Asia. Asia is the most dynamic part of the world. Japan, Korea, Taiwan, and Singapore experienced rapid and miracle economic growth in the 1970s. Malaysia, Indonesia, and Thailand followed in the 1980s. China, India, and Vietnam are now rising countries in Asia and are even leading the world economy. Due to their rapid economic development and growth, Asian countries continue to face a variety of urgent issues including regional and institutional unbalanced growth, environmental problems, poverty amidst prosperity, an ageing society, the collapse of the bubble economy, and deflation, among others. Asian countries are diversified as they have their own cultural, historical, and geographical as well as political conditions. Due to this fact, scholars specializing in regional science as an inter- and multi-discipline have taken leading roles in providing mitigating policy proposals based on robust interdisciplinary analysis of multifaceted regional issues and subjects in Asia. This series not only will present unique research results from Asia that are unfamiliar in other parts of the world because of language barriers, but also will publish advanced research results from those regions that have focused on regional and urban issues in Asia from different perspectives. The series aims to expand the frontiers of regional science through diffusion of intrinsically developed and advanced modern regional science methodologies in Asia and other areas of the world. Readers will be inspired to realize that regional and urban issues in the world are so vast that their established methodologies still have space for development and refinement, and to understand the importance of the interdisciplinary and multidisciplinary approach that is inherent in regional science for analyzing and resolving urgent regional and urban issues in Asia. Topics under consideration in this series include the theory of social cost and benefit analysis and criteria of public investments, socio-economic vulnerability against disasters, food security and policy, agro-food systems in China, industrial clustering in Asia, comprehensive management of water environment and resources in a river basin, the international trade bloc and food security, migration and labor market in Asia, land policy and local property tax, Information and Communication Technology planning, consumer “shop-around” movements, and regeneration of downtowns, among others. Researchers who are interested in publishing their books in this Series should obtain a proposal form from Yoshiro Higano (Editor in Chief, [email protected]) and return the completed form to him.

Editor in Chief Yoshiro Higano, University of Tsukuba Managing Editors Makoto Tawada (General Managing Editor), Aichi Gakuin University Kiyoko Hagihara, Bukkyo University Lily Kiminami, Niigata University Editorial Board Yasuhiro Sakai (Advisor Chief Japan), Shiga University Yasuhide Okuyama, University of Kitakyushu Zheng Wang, Chinese Academy of Sciences Hiroyuki Shibusawa, Toyohashi University of Technology Saburo Saito, Fukuoka University Makoto Okamura, Hiroshima University Moriki Hosoe, Kumamoto Gakuen University Budy Prasetyo Resosudarmo, Crawford School of Public Policy, ANU Shin-Kun Peng, Academia Sinica Geoffrey John Dennis Hewings, University of Illinois Euijune Kim, Seoul National University Srijit Mishra, Indira Gandhi Institute of Development Research Amitrajeet A. Batabyal, Rochester Institute of Technology Yizhi Wang, Shanghai Academy of Social Sciences Daniel Shefer, Technion - Israel Institute of Technology Akira Kiminami, The University of Tokyo Jorge Serrano, National University of Mexico Binh Tran-Nam, UNSW Sydney, RMIT University Vietnam Ngoc Anh Nguyen, Development and Policies Research Center Thai-Ha Le, Fulbright University Vietnam Advisory Board Peter Nijkamp (Chair, Ex Officio Member of Editorial Board), Tinbergen Institute Rachel S. Franklin, Brown University Mark D. Partridge, Ohio State University Jacques Poot, University of Waikato Aura Reggiani, University of Bologna

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Nobuyoshi Yasunaga • Norikazu Inoue Editors

Farm and Rural Community Management in Less Favored Areas

Editors Nobuyoshi Yasunaga Institute of Agricultural and Life Sciences, Academic Assembly Shimane University Matsue, Shimane, Japan

Norikazu Inoue Institute of Agricultural and Life Sciences, Academic Assembly Shimane University Matsue, Shimane, Japan

ISSN 2199-5974 ISSN 2199-5982 (electronic) New Frontiers in Regional Science: Asian Perspectives ISBN 978-981-15-7351-4 ISBN 978-981-15-7352-1 (eBook) https://doi.org/10.1007/978-981-15-7352-1 © Springer Nature Singapore Pte Ltd. 2020 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors, and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Singapore Pte Ltd. The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721, Singapore

Preface

This book is based on the author’s research during the last decade in hilly and mountainous areas in Japan, especially in Shimane prefecture, which has mountainous villages, heavy snowfall areas, and peninsulas in western Japan. The area is one of the typical less-favored areas in Japan. Japan’s total population had been growing rapidly, but in recent years it has begun to decline. At the same time, the migration of population from rural to cities and the concentration of population in Tokyo have been continued. In the 2000s, there were municipal mergers in various regions in Japan. Japan’s rural areas have faced new challenges since the 2000s. We have been following these challenges as researchers. The direction of this book was decided after the discussions among authors involved in the rural development activities. This book offers new initiatives in the research field and analytical perspectives for the future development of the hilly and mountainous areas. We hope that this book will be a reference for all those involved in the sustainable development of rural areas in the future. Matsue, Japan

Nobuyoshi Yasunaga

vii

Contents

1

Historical and Geographical Viewpoints for the Analysis of Rural Community Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nobuyoshi Yasunaga

Part I 2

3

4

6

7

Farmland Conservation and Rural Vitalization

Characteristics of Collective Conservation of Farmlands with Broad-Based Community Agreement Under Direct Payment Policy in Hilly and Mountainous Areas . . . . . . . . . . . . . . . . . . . . . . Nobuyoshi Yasunaga

17

Resource Conservation and Community Vitalization Forms of Rural Communities in Hilly and Mountainous Areas . . . . . . . . . . . . . . . . Nobuyoshi Yasunaga

37

Characteristics of New Farmers’ Entry Into Agriculture in Hilly and Mountainous Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nobuyoshi Yasunaga

51

Part II 5

1

Farm Management Through Redistribution of Agricultural and Local Resources

Agriculture Based on the Recirculation of Local Resources: Focusing on Community-Based Farming Organizations . . . . . . . . . . . . . . . . . Norikazu Inoue

73

Diversification Choices for Community-Based Farming Corporations: Focusing on Farm Resources . . . . . . . . . . . . . . . . . . Norikazu Inoue

93

Agriculture Based on Regional Self-Sufficiency in Mountain Villages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 Norikazu Inoue ix

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Contents

Part III

Significance and Possibility of Locally Processed Foods and Community Businesses

8

Value and Consumption Conditions of Locally Processed Food: Market Strategy of Tomato Juice . . . . . . . . . . . . . . . . . . . . . . . . . . 127 Nobuyoshi Yasunaga

9

Community Development Based on the Local Food Culture: A Case Study of Mindani District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 Yukiko Nakama

10

Impact of Broad-Based Regional Management on Community Business Forms in Hilly and Mountainous Areas . . . . . . . . . . . . . . 161 Nobuyoshi Yasunaga

Part IV

Sustainability of Rural Society: Possibility of Community Development Projects

11

The Role of the Community Hub Established with Multiple Communities in Hilly and Mountainous Areas . . . . . . . . . . . . . . . . 181 Nobuyoshi Yasunaga

12

Relationship Between Community-Based Tourism and Autonomous Organizations in Rural East Asia: Four Case Studies in Japan and China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199 Shinji Takada

13

Characteristics of Young People on Employment and Settlement in Rural East Asia: A Case of the Rural-Regeneration Supporters Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221 Shinji Takada

Chapter 1

Historical and Geographical Viewpoints for the Analysis of Rural Community Management Nobuyoshi Yasunaga

Abstract This chapter examines the history of rural communities in Japan. It also examines the geographical characteristics of the areas in which these communities live. In particular, the chapter focusses on the following three aspects: population change in Japan compared to Asia, geographical characteristics of hilly and mountainous areas in Japan, and change of rural governance in Japan. We found the following key results. First, most rural areas in Japan experienced depopulation in the 1960s; some continued to experience it in the 1990s. In recent years, Japan, as a whole, faces population decline and aging. This was after it experienced a rapid population increase, following the Meiji period. Second, Japan has many hilly and mountainous areas. These areas have unfavorable conditions and are concentrated in the Chugoku agricultural region. Large-scale merging of municipalities was conducted three times since the Meiji era. Resource management in the hilly and mountainous areas is becoming difficult due to population decline and aging. Considering the above, a reorganization of rural communities is necessary for sustainable rural development. Keywords Rural community · Population change · Geographical characteristics · Agricultural region · History of rural governance · Less-favored area

1.1

Introduction

This book examines rural community management as a tool to sustainably develop rural communities in hilly and mountainous areas in Japan. According to the census of agriculture and forestry, a rural community is defined as the smallest social unit in a rural area. The contents of this book also provide suggestions to improve N. Yasunaga (*) Institute of Agricultural and Life Sciences, Academic Assembly, Shimane University, Matsue, Shimane, Japan e-mail: [email protected] © Springer Nature Singapore Pte Ltd. 2020 N. Yasunaga, N. Inoue (eds.), Farm and Rural Community Management in Less Favored Areas, New Frontiers in Regional Science: Asian Perspectives 44, https://doi.org/10.1007/978-981-15-7352-1_1

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agribusinesses in rural communities in Asian countries. Furthermore, there are many discussions on unfavorable conditions, such as the distance of farms from urban areas, deterioration of livelihoods and rural landscape. In this chapter, we explain the current situation of rural areas in Japan and the characteristics of its hilly and mountainous areas, from the following three aspects: population change, geographical characteristics of hilly and mountainous areas, and the vitalization of rural society under the merger of local municipalities. Previous studies have captured the concept of community from various perspectives such as geographical, psychological, and social structural views (Liepins 2000). We firstly define the regional unit for community analysis. In this book, “city,” “town,” or “village” refer to a municipality that has a legal personality in the sight of the local government. “shi,” “cho (machi),” and “son (mura)” refer to names of places. “Rural community” refers to the smallest social unit in a rural area (Kojima 1993, p. 93–94). It connects farmers and residents to enable the management of agricultural resources and sustainability of livelihoods. We use “settlements” when referring to the residential area of a rural community. “Oaza” refers to the administrative unit formed within a geographical area in municipalities. This unit was created in 1889 (Meiji era), through the enactment of legislation that promoted the merger of towns and villages. Relatedly, “hamlet” refers to a village that is smaller in size than that of oaza.

1.2

Characteristics of Japan’s Population

First, the rapid increase in the population since the Meiji period has led to overpopulation. Figure 1.1 shows the changes in Japan's total population. The population in the early Meiji period was a little over 30 million (Morita 1944) compared to the current total population of approximately 120 million. The government tolerated the excessive population growth because of its positive effects on the wealth and power of the country, specifically, positive economic growth and the reinforcement of the military. The population growth rate in the early Meiji period was about 0.1%. From 1920 to 1940, this increased to 1%. Owing to World War II, the population decreased by 0.31% from 1940 to 1945; thereafter it increased by 3% from 1945 to 1950. There were 2.5 million births/year between 1947 and 1949, compared to approximately 1 million/year, currently. People born between 1947 and 1949 came to be known as the “Dankai generation”; they were an integral part of the Japanese economy. Japan had experienced a demographic dividend but the Dankai generation is now aged and Japan’s population has become unevenly distributed in view of demographic pyramid. Second, after World War II, there was a decrease in the population and an increase in migration (to urban areas). The Ikeda cabinet introduced the Income Doubling Plan in 1960, with the aim to increase manufactured products in the Pacific Belt Zone in Japan by improving its social overhead capital. At the same time, many younger people, in the search for work, moved from rural to urban areas, including

1 Historical and Geographical Viewpoints for the Analysis of Rural Community. . .

3

Unit: thousand people 140,000 120,000 100,000

80,000 60,000 40,000 20,000

1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060 2065 2070 2075 2080 2085 2090 2095 2100

1850 1855 1860 1865 1870 1875 1880 1885 1890

0

Fig. 1.1 Changes in Japan’s total population. Source: The Ministry of Internal Affairs and Communications. National census. United Nations. World Population Prospects: The 2019 Revision. Note 1: The population from 1920 to 2015 represents the national census population; the population in the 1800s (early Meiji era) is quoted from Morita (1944). Note 2: Total population from 2020 to 2100 represents the predicted values of United Nations based on the assumption of medium fertility variant

the Pacific Belt Zone, especially in the 1960s. This coincided with the period that the Dankai generation graduated from junior high school (compulsory level of education). Although measures to correct regional income inequality were implemented via the Comprehensive National Develop Plan, migration continued; prefectures with a population growth rate of 10% or more were observed. The censuses of 2005, 2010, and 2015 showed that about a half of the national population was concentrated around the three major metropolitan areas of Osaka, Nagoya, and Tokyo. Even now, only Tokyo have been still experienced substantial social increase in population. Third, from 2010 to 2015, the population of Japan decreased, the median age of the population increased, and the number of births decreased. In 1974, total fertility rate (TFR) fell below 2.07% and showed a continuing downward trend. Since then, the number of births decreased year by year. Since 2005, the number of deaths has exceeded the number of births. This reversal phenomenon led to a decline in the population of Japan, from around 2010; the annual growth rate of the population was 0.15% from 2010 to 2015. In 2015, the aging rate (percentage of the population that is 65 years and older) was 26%. Due to a decrease in the number of births and population aging, a decline in the population began in prefectures such as Yamaguchi, Shimane, Kochi, and Akita as early as the 1990s. Fourth, the United Nations (UN) predicts that the total population in Europe and Asia will decline from 2020 to 2025 and 2055 to 2060, respectively (United Nations 2019). In addition, the aging rate will exceed 20% in Europe in 2025, and reach 20% in Asia in 2060. There was a rapid increase in the aging rate in Japan from 1971 to 1995, as shown in Table 1.1. It took Japan 24 years to move from an aging rate of 7%

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Table 1.1 Rate of increase in aging rate

Singapore Korea China Japan Taiwan Germany UK Belgium Switzerland Italy Netherlands Canada USA Sweden France

Year 7% (aging rate) 2004 2000 2002 1971 1992 1932 1929 1925 1931 1927 1940 1945 1942 1887 1864

14% (aging rate) 2021 2018 2025 1995 2018 1972 1975 1975 1985 1988 2004 2010 2014 1972 1990

20% (aging rate) 2028 2025 2035 2006 2026 2008 2026 2023 2023 2008 2020 2024 2030 2018 2018

Required years to move from 7% to 14% 17 18 23 24 26 40 46 50 54 61 64 65 72 85 126

Source: National Institute of Population and Social Society Research in Japan. Latest Demographic Statistics 2020 United Nations. World Population Prospects: The 2019 Revision Note 1: Required years represents the duration that the rate of aging reaches from 7% to 14% Note 2: The values since 1950 are based on the estimate of United Nations

to 14%. This duration is low compared to other developed countries: The UK, the USA, Germany, and France are 46, 72, 40, and 126 years, respectively. For the listed Asian countries, it is expected that the aging rate will increase in the future. For example, in China, it is expected that it will take 23 years for the aging rate to move from 7% to 14%, which the almost same duration as Japan; Korea and Singapore are expected to take 18 and 20 years, respectively. Figure 1.2 shows the prospects for aging rate in East Asia countries such as Japan, Korea, China, and Taiwan. It is predicted that the population of East Asian countries will age faster than other Asian countries. In Japan, the dependency ratio, defined as a measure of the number of dependents aged 0–14 and over the age of 65 compared with the total population aged 15–64, is 64.0 in 2015. The UN estimates that the dependency ratio will increase in Eastern Asia and Europe. As alluded to above, there is a high probability that depopulation and aging will continue in Asia. Therefore, it is critical to analyze the geographical conditions in mountainous areas, where Japan has experienced population decline, to provide recommendations for the revitalization of local communities. This analysis will also be of value to other countries.

1 Historical and Geographical Viewpoints for the Analysis of Rural Community. . .

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Unit: % 45.0 40.0

35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0

Japan

Korea

China

Taiwan

Fig. 1.2 Prospects for aging rate in East Asia. Source: United Nations. World Population Prospects: The 2019 Revision. Note 1: The values from 2020 to 2100 are predicted by United Nations based on the medium fertility variant. Note 2: It represented four countries with a relatively high level of aged population

1.3

Geographical Characteristics of Agricultural Regions in Japan

Table 1.2 shows the proportion of settlements in hilly and mountainous areas for each agricultural region, in Japan, in 2015. For this purpose, we used information from the census of agriculture and forestry of the Ministry of Agriculture, Forestry, and Fisheries. The Chugoku region has the highest proportion of settlements in hilly and mountainous areas (72.4%); its prefectures’ proportions range from 60% to 80%, higher than the total prefecture average of 50.8%. These are distinguishing characteristics among farming regions of Japan. In 2000, the central government introduced a policy of direct payments to farmers in hilly and mountainous areas. The proportion of total payments to the Chugoku region was relatively high because of its many mountainous areas. Most farmlands are paddy fields in hilly and mountainous areas. Within the Chugoku region, we focus on the Shimane prefecture, in which, about 80% of the population lives in hilly and mountainous areas, and the decline of its population occurred in the 1990s. These two phenomena occurred earlier than in other prefectures. In addition, it is the only prefecture in Japan in which the current population level is lower than that in 1920, the first census year. However, the TFR in 2015 was 1.80, which meets the target set by the Japanese central government. The employment rate of women is higher than the other regions. It was a custom for women to go to work since household income was low level. The Shimane prefecture has potential to build a sustainable recycling society, given its relatively small population. In this book, we focus on the settlements in the hilly and mountainous areas of the Shimane prefecture; however, we aim to supplement this by examining

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Table 1.2 Proportion of settlements in hilly and mountainous areas for each agricultural region (2015)

Japan Japan, excluding Hokkaido Agricultural region Hokkaido Tohoku Hokuriku Kanto, Tozan North Kanto South Kanto Tozan Tokai Kinki Chugoku Sanin Sanyo Shikoku Kyushu North Kyushu South Kyushu Okinawa

Farm management area ha 30,62,037 21,60,502

9,01,535 5,62,079 2,06,742 4,87,602 2,51,704 1,51,921 83,978 1,62,881 1,50,074 1,44,724 44,723 1,00,000 88,352 3,34,341 2,16,646 1,17,695 23,707

Abandoned farmlands ha % 4,23,064 12.1 4,04,411 15.8

18,654 89,568 20,879 1,06,055 48,256 35,243 22,557 35,147 22,247 42,768 10,897 31,871 24,897 60,404 44,125 16,279 2445

2.0 13.7 9.2 17.9 16.1 18.8 21.2 17.7 12.9 22.8 19.6 24.2 22.0 15.3 16.9 12.2 9.3

Total settlements number 1,38,256 1,31,175

7081 17,432 11,050 24,292 9043 8908 6341 11,613 10,796 19,663 5718 13,945 11,027 24,552 15,837 8715 750

Settlements in hilly and mountainous areas number % 72,947 52.8 69,347 52.9

3600 9333 5662 8272 2258 1716 4298 4858 5897 14,227 4292 9935 6552 14,375 8140 6235 171

50.8 53.5 51.2 34.1 25.0 19.3 67.8 41.8 54.6 72.4 75.1 71.2 59.4 58.5 51.4 71.5 22.8

Source: Ministry of Agriculture, Forestry and Fishery. Census of Agriculture and Forestry, 2015

other areas, such as settlements in the Kyoto, Hyogo, and Kochi prefectures. We also try to further extend the study to other rural areas in China. In addition to the above points, we mention the situation of family farms in rural communities. During a General Assembly on December 20, 2017, the UN stated that the period from 2019 to 2028 should be the decade of family farming (i.e., farming on a small scale). In recent years, the role of family farming has been given new importance in dealing with the rural poverty problem and sustainable use of resources (FAO 2019; Lowder et al. 2014). Since it is difficult to construct largescale farms in hilly and mountainous areas, a regional management system that prioritizes family farming should be considered. To enable this, it is critical to improve regional management, by facilitating the interaction between family farmers and community organizations (e.g., community-based farming and other types of community businesses, as discussed below).

1 Historical and Geographical Viewpoints for the Analysis of Rural Community. . .

1.4

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History of Rural Governance in Japan

First, centralized society was formed between the Warring States period (Toyotomi government) and the Edo period (Tokugawa government). Rural communities were formed around sources of water, which they used in their paddy fields. As regional units, they collected annual land tax (rice). Before World War II, farmlands were divided into small-scale plots. Landlords rented their farmlands to small-scale tenant farmers. As a land reform initiative, the landlords’ farmlands were reallocated to the tenant farmers from 1947 to 1950. Since then, agricultural activities in rural communities have been conducted mainly by small-scale farmers using their own farmlands. Rural areas tend to attract factories; this, coupled with the mechanization of most farms, has led to many farmers taking off-farm jobs in factories. Second, reforms and mergers of municipalities were carried out during the Meiji, Showa, and Heisei periods. During the Meiji period, municipalities were formed under the act of the city, town, and village, in 1889. Due to the enforcement of compulsory education, the municipalities were formed based on population size and geographical location to establish elementary schools. In the Showa period, the laws for promoting mergers of towns and villages were enacted in 1953 and 1956. Municipalities were merged and reformed to perform the following functions: firefighting, construction of intermediate schools (the period of compulsory education was extended to nine years after World War II), improvement of health and hygiene (water and sewage management). In the Heisei period, from the early 2000s, the merging of municipalities was planned to improve the efficiency of administrative and financial management, in the background of deflationary conditions. Many significant mergers took place around 2005. They were called “The Heisei no Dai Gappei” (Rausch 2006). It is suggested that the reasons for the mergers were the declining population and stagnant economic growth that made it difficult to distribute grants from central government to the many financially strapped municipalities. Although the municipalities have been streamlined, most rural communities continue functioning under the old rules (before the Meiji era). The mergers made the lives of residents in surrounding areas worse off due to the reduction of municipal subsidies, which led to a decline in the performance of agribusinesses and a consequent outflow in population. The surrounding areas include rural communities in many hilly and mountainous areas. Third, in the background of high economic growth in the 1960s, the urban and rural population drastically changed. Rural populations flowed into the Pacific Belt Zone. Hilly and mountainous areas experienced a decline in population due to migration. This caused a deterioration in living conditions for the existing population. By contrast, urban areas developed further due to the concentration of social infrastructure, which led to further migration from rural areas. The population decline in rural areas made it difficult to maintain daily tasks, such as the running of small shops, administration of elementary schools, and maintenance of medical institutions. Development policies focusing on external sources, such as attracting factories to the community, were implemented under the Comprehensive National

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Development Plan. Following this, the vision of the settlement area was drafted by the Third Comprehensive National Development Plan in the 1970s. In addition, the resort development project for rural areas (development of recreational facilities) was proposed under the Fourth Comprehensive National Development Plan in the 1980s. However, these policies did not significantly change the population flow between rural and urban areas. In the second half of the 1980s residents of rural areas became frustrated with the liberalization of agricultural products under the General Agreement on Tariffs and Trade (GATT), Uruguay Round. Hilly and mountainous areas began to attract attention of researchers and central government because of depopulation and population aging. Residents in hilly and mountainous areas attempted to manage their communities. This led to the U-turn movement (returning of people from urban areas to their hometowns), one village one product movement, and the planning of community businesses. In the 1990s, urban-rural exchange was developed as a policy measure to revitalize rural areas, especially hilly and mountainous areas. For instance, the Ministry of Agriculture, Forestry, and Fisheries proposed “green tourism,” based on agro- and agritourism, as a way of complementing agricultural income in hilly and mountainous areas. This was to be achieved by taking such measures based on the new policy of 1992 concerning food, agriculture, and rural areas. The Basic Law on Food, Agriculture and Rural Areas, which was enacted in 1999, also places emphasis on exchanges between urban areas and rural areas as well as development of hilly and mountainous areas (MAFF 2019). Fourth, since the late 1980s, local resource management such as mowing of grass on agricultural roads and cleaning agricultural waterways started to become a burden for farmers because of a lack of young labors, especially in hilly and mountainous areas. In early 1990s, the issue of marginal settlements (the term generally refers to settlements where the percentage of the population aged 65 and over exceeds 50%, and in which it has become difficult to maintain communal activities and livelihoods) came to the attention of the public. In the 2000s, to prevent the deterioration of rural communities under the large-scale municipal mergers (Rausch 2006), the local autonomy system (districts) was introduced, under the local government act in 2004. This was a system that seeks to expand resident autonomy by creating councils in order to reflect residents’ opinions in small areas within their autonomous region. However, many municipalities introduced their own unique system, based on the original regulations proposed by each municipality, to manage regional resources taking into account their unique regional conditions. Thus, since the 2000s, each region has developed the original organization for regional management. In around 2014, the organization for regional management was renamed Region Management Organization (RMO) by the Ministry of Internal Affairs and Communications although some studies, such as Saio and Mieno (2005), referred to the new organization as “community management organization.” In 2009, the Ministry of Internal Affairs and Communications introduced a policy called the institution of local vitalization cooperators (MIAC 2019). This policy encourages outside supporters (people who migrate from urban to rural areas) to assist in the conserving of regional resources. Using the above system, residents are seeking to develop new autonomous community units supported by multiple rural communities, community-based

1 Historical and Geographical Viewpoints for the Analysis of Rural Community. . .

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farm organizations, urban–rural interaction, and green tourism. Since the 2000s, Neo-endogenous development theory (Ward et al. 2005; Ray 2006; Hubbard and Gorton 2011), focusing on the interaction between external and internal forces, has also been considered by researchers. In the late 2000s, rural residents began to cooperate with the University for promoting rural areas. Experimental learning programs in rural areas and community vitalization activities have been conducted in collaboration with the University and the local community. In recent years, it has become difficult to sustain rural communities due to depopulation and population aging. It is important to present a new model that aims to sustainably develop the rural communities with small population sizes. We believe that this study can provide solutions to many of the problems faced by rural communities.

1.5

Definition of “Less-Favored Area”

Less-favored areas include one or more of the following characteristics: depopulation: negative agricultural conditions, including soil conditions; peninsulas; remote islands; former coal mining area; and a high amount of snowfall. Temporary legislation was enacted to compensate for each of the above characteristics. This legislation was renewed several times, and is still in effect today, covering all of the aforementioned characteristics, except for former coal mining areas. It is clear that hilly and mountainous areas are considered as less-favored areas. In Japan’s agricultural policy, hilly and mountainous areas were regarded as areas where agricultural productivity was low due to natural and land conditions, making it difficult to promote large-scale farm management as well as the recruitment of young farmers (Odagiri 1994, p. 12–14). This book mainly focuses on the characteristics that impact rural communities. It also examines the geographical characteristics of rural areas, such as the distance to urban areas and relation with nearby cities and facilities.

1.6

Contents of Each Chapter

Table 1.3 shows the focus points of this book. We use “rural community management” as a keyword throughout the book, and as a new framework to address population decline and aging communities. Rural community management refers to the sustainable management of rural communities focusing on agricultural settlements. Rural communities are also referred to as “shuraku” or “mura” in Japanese. The word “mura” has been used to refer to a regional unit for tax collection in the Edo period. Currently, “oaza” and “koaza” have been used as administrative divisions, which were created within the territory of the new municipality formed at the time of great mergers in the Meiji period. Koaza is smaller administrative unit than oaza. The divisions fall under the territory of mura in Edo period. Such social units

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Table 1.3 Focus points of this book Geographical range of residents’ self-governance Rural community (settlement)

Traditional selfgovernment organization such as a residents’ association

Multiple rural communities

Old elementary school district

Old municipalities

New self-government organization for broad-based community management, e.g. community hub, regional management organization (RMO)

Initiatives to improve residents' lives

Stakeholders who have migrated from urban to rural areas, e.g. local vitalization cooperators Network for inheritance of traditional food culture

Interaction base between urban and rural areas

Farming union Initiatives to improve agribusinesses and resource managment

Community-based farming Cooperation among community-based farmers Redistribution of agricultural and local resources

Farm related business

Initiatives for the acquisition of funds from external sources

Farm diversification

Green Tourism(Community-based tourism) Establishment of a new corporation including non-farm businesses

Note: Shaded regions represent focus points in this study

are important in Asia because many Asian societies are based on paddy fields; therefore, it is essential to construct theoretical frameworks and social models based on these small rural societies. Table 1.4 shows the topics in this book. We consider the purpose of rural community management as balancing the following three aspects: economy, society, and environment. This will involve initiatives such as farmland conservation, utilization of agricultural and local resources, e.g., redistribution of agricultural resources between crop and livestock farming, organic farming in municipality level and farm product processing. It is necessary to consider the sustainability of rural communities from multiple angles. The relationship between community organizations and the interaction between internal and external forces in the region will also be a focal point in this book. This book is divided into four parts.

Part II

Part I

Resource conservation and social vitalization forms of rural communities New entry farmers immigrated from urban to rural areas

–

Chapter7

Organic farming and regional self-sufficiency

–

Iinan-cho Shimane prefecture

Scheme for young farmers

Agrarian movement Neo-endogenous rural development

Onan-cho Izumo-shi Shimane prefecture Akita prefecture Fukui prefecture Shimane prefecture Kakinoki-mura Shimane prefecture

Shimane prefecture

Shimane prefecture

Study area

Direct payment for rural multifunctionality

Direct payment for hilly and mountainous areas

Related policy

Farm management through redistribution of agricultural and local resources Chapter5 Community-based cooperation Redistribution of local among farmers resources Biodiversity Chapter6 Farm diversification in Farm diversification community-based farming

Chapter 4

Chapter 3

Topic Chapter 1 Background and flow Farmland conservation and rural vitalization Chapter 2 Farmland conservation and efficiency

Table 1.4 Topics of each chapter in the book

(continued)

Case study, historical analysis

Econometrics, case study

–

Hiroshima-shi Iwakuni-shi Masuda-shi

Case study

Field survey of farm households

Case study

Case study, DEA approach

Method –

Matsue-shi Hiroshima-shi

Matsue-shi Izumo-shi Hiroshima-shi Matsue-shi Izumo-shi Hiroshima-shi Matsue-shi Izumo-shi Hiroshima-shi

Location (neighboring urban area) –

1 Historical and Geographical Viewpoints for the Analysis of Rural Community. . . 11

Part IV

Part III

Role of community bussineses in broad-based regional management

Community business, LEADER programme,neo-endogenous rural development

Chapter 13

Characteristics of young people immigrate to rural areas in China

Counter-urbanization Neo-endogenous rural development

Sustainability of rural society: possibility of community development projects Chapter 11 Role of community hub with LEADER programme multiple rural communities CLLD, neo-endogenous rural development Chapter 12 Relationship between Agritourism, Agrotourism, or community-based tourism and Rural tourism autonomous rural organizations in Japan and China

Chapter 10

Topic Related policy Significance and possibility of locally processed foods and community businesses Chapter 8 Demand for organically and Furusato nozei, community locally processed food supported agriculture Chapter 9 Community development based Inheritance of regional food on the regional food culture culture, small is beautiful

Table 1.4 (continued)

Kyoto-shi, Osaka-shi, Kobe-shi, Beijing

Miyama-cho, Kyoto prefecture Tambasasayama, Hyogo prefecture Huairou, Beijing, China Rural-regeneration supporters in China

–

Kochi-shi

Matsue-shi, Hiroshima-shi

Tokyo metropolitan area Matsue-shi

Community activity centers in Kochi prefecture

Hida district, Yasugi-shi, Shimane prefecture, Yasaka district, Hamada-shi, Shimane prefecture

Mindani district, Unnan-shi, Shimane prefecture

Consumers in Tokyo

Study area

Location (neighboring urban area)

Quantitative analysis

Case study

Case study

Case study, historical analysis Case study

Econometrics

Method

12 N. Yasunaga

1 Historical and Geographical Viewpoints for the Analysis of Rural Community. . .

13

• Part I focuses on the conservation of farmlands in rural communities. Chapter 2 examines the community agreements under the direct payment policy to farmers in hilly and mountainous areas. It also examines the relationship between conservation and efficiency of farmland conservation resulting from community agreements under the direct payment policy to farmers in hilly and mountainous areas. Chapter 3 examines the characteristics of rural resource conservation and community vitalization under direct payment program for multifunctionality. It discusses the possibilities of broad-based resource and community management through direct payment polity. Chapter 4 examines the characteristics of new farmers in hilly and mountainous areas. It explains the circumstances surrounding the starting of a new agribusiness by migrant residents in hilly and mountainous areas. These studies discuss the geographical characteristics that impact farm and resource conservation activities in hilly and mountainous areas. • Part II focuses on the improvement of farm resource management. In particular, the distribution of agricultural resources is discussed. Chapter 6 focuses on community-based farming and examines the regional cooperation among community-based farms. Chapter 7 uses econometrics to analyze farm diversification, and the utilization of farm resources. Chapter 8 focuses on the philosophy and methodology of village planning (“Son-ze” in Japanese) and examines the conditions surrounding the distribution of organic materials. These studies discuss how farm resources should be circulated in rural resource management. • Part III focuses on the potential for improvement of agribusinesses the possibility of locally processed foods and community businesses. Chapter 8 examines the value and consumption of locally processed food, and analyzes the market strategy involved. It examines the consumer preferences of local products in Tokyo using a case study of tomato juice. Chapter 9 focuses on the inheritance of food culture. It examines the possibility of coordinating food processing activities in small-scale district with two rural communities in hilly and mountainous areas. Chapter 10 examines the features of community businesses that result from the organized regional management of multiple communities. These studies discuss the impact of community businesses for rural sustainability. • Part IV focuses on the sustainability of rural societies. In particular, the initiatives of rural community development are examined based on the relation between urban and rural areas. Chapter 11 focuses on the residents’ activities through community hub that foster relationships among rural communities. It is a broadbased autonomous organization that services multiple communities. The activities are also related to interactions between urban and rural areas. Chapter 12 focuses on green tourism in Japan. Green tourism promotion with farmers’ cooperation lead to rural development, however, it is difficult in hilly and mountainous areas. It discusses the structure and management of communitybased rural tourism. Chapter 13 focuses on the settlement of outside supporters in China. China encourages young people to migrate to rural areas and promotes rural vitalization through multiple systems. It discusses the rural management systems for outside supporters and rural development by examining the institutions and behavioral patterns of the supporters in China.

14

N. Yasunaga

Acknowledgement This work was partially supported by JSPS KAKENHI, grant number JP18K05866.

References FAO (2019) Family farming knowledge platform. Accessed May 8, 2019. http://www.fao.org/ family-farming/home/en/ Hubbard C, Gorton M (2011) Placing agriculture within rural development: evidence from EU case studies. Environ Plan C 2011(29):80–95 Kojima T (1993) The world of agricultural census. Association of Agriculture and Forestry Statistics, Tokyo Liepins R (2000) New energies for an old idea: reworking approaches to ‘community’ in contemporary rural studies. J Rural Stud 16:23–35 Lowder SK, Skoet J, Singh S (2014) What do we really know about the number and distribution of farms and family farms worldwide? Background paper for the state of food and agriculture 2014, ESA working paper no. 14-02 MIAC (2019) Information concerning local vitalization cooperators in Japan, Accessed April 10, 2019. http://www.soumu.go.jp/main_sosiki/jichi_gyousei/c-gyousei/02gyosei08_ 03000066.html Ministry of Agriculture, Forestry and Fisheries (MAFF) (2019) Information concerning the basic act of food, agriculture, and rural areas in Japan. Accessed April 10, 2019. http://www.maff.go. jp/j/kanbo/kihyo02/newblaw/ Morita Y (1944) Analysis of population growth. Nippon Hyoron Sya, Tokyo Odagiri T (1994) The issue of hilly and mountainous regions in Japanese agriculture. Association of Agriculture and Forestry Statistics, Tokyo Rausch A (2006) The Heisei Dai Gappei: a case study for understanding the municipal mergers of the Heisei era. Jpn For 18(1):133–156 Ray C (2006) Neo-endogenous rural development in the EU. In: Cloke P, Marsden T, Mooney P (eds) The handbook of rural studies. SAGE, London, pp 278–292 Saio N, Mieno A (2005) The actual situation and roles of the community management organization in rural areas: using a comparison of community management cases in the city center with those in suburban areas. J Rural Plan Assoc 24:217–222 United Nations (2019) World population prospects: The 2019 revision. Online Edition. Rev. 1, from https://population.un.org/wpp/ Ward N, Atterton J, Kim TY, Lowe P, Phillipson J, Thompson N (2005) Universities, the knowledge economy, and ‘neo-endogenous rural development’. Centre for Rural Economy Discussion Paper Series No.1. pp 1–15

Part I

Farmland Conservation and Rural Vitalization

Chapter 2

Characteristics of Collective Conservation of Farmlands with Broad-Based Community Agreement Under Direct Payment Policy in Hilly and Mountainous Areas Nobuyoshi Yasunaga

Abstract This study examines the relationship between regional agriculture and the effective conservation of farmlands through broad-based community agreements under the direct payment policy to hilly and mountainous areas by studying the characteristics of such broad-based community agreements. Using the data taken from community agreements under a direct payment policy in the hilly and mountainous areas of the Shimane prefecture and the data collected from the Census of Agriculture and Forestry, we arrive at four main findings. First, the average overall effectiveness of integrated community agreements is 0.48 as efficiency score in DEA. Moreover, there were large disparities in the first divisional efficiency of production. Second, community agreements covering large areas are more effective as compared to small- and mid-scale community agreements. In addition, geographical conditions of locations also influence the effectiveness of community agreements. Third, differences in effectiveness level in clusters were related to regional social characteristics such as area scale of agreements, the level of readjustment of the paddy fields, diversification of farm size, and diversification of supporters for conservation of farmland. These facts indicate that it is important to consider diversity of broad-based community agreements to improve the effective conservation of farmland in hilly and mountainous areas. Keywords Rural community · Direct payment policy · Hilly and mountainous areas · Community agreement · Broad-based form

N. Yasunaga (*) Institute of Agricultural and Life Sciences, Academic Assembly, Shimane University, Matsue, Shimane, Japan e-mail: [email protected] © Springer Nature Singapore Pte Ltd. 2020 N. Yasunaga, N. Inoue (eds.), Farm and Rural Community Management in Less Favored Areas, New Frontiers in Regional Science: Asian Perspectives 44, https://doi.org/10.1007/978-981-15-7352-1_2

17

18

2.1

N. Yasunaga

Introduction

In Japan, direct payment policy to hilly and mountainous areas was introduced in the fiscal year 2000 to maintain the multifunctional role of agriculture. Under this policy, financial support was provided to compensate for the disadvantages in agricultural production conditions in hilly and mountainous areas so that such areas can maintain agricultural production activities. (Ministry of Agriculture, Forestry, and Fisheries 1999) Under the direct payment policy, financial support was mainly extended through community agreements executed within the geographical range of the agricultural settlement called shuraku in Japan. As shown in Table 2.1, the agreements were renewed every 5 years where the farmers decided to continue the agreement. However, it has become increasingly difficult to conserve all farmlands in shuraku because the agricultural population in shuraku has been declining in the recent years. From the fiscal year 2005, in smaller settlements where farmers were unable to continue such agreements due to old age, the government has encouraged the integration of such community agreements. However, no in-depth study has been conducted to quantitatively examine the characteristics of broad-based community agreements. In previous studies, Goodwin and Mishra (2005), Weber and Key (2012), Kazukauskas et al. (2014), Cillero et al. (2018) primarily examined the effect of direct payments on-farm production. Goodwin and Mishra (2005) examined the farmers’ acreage decisions in the Corn Belt farms and found that direct payments do not significantly influence the farm-level acreage adjustment. Weber and Key (2012) focused on the program crops such as corn, soybeans, wheat, and oats under 2002 Farm Act in the USA and suggested that decoupled payments from 2002 to 2007 had little effect on the value of program crop production. Kazukauskas et al. (2014) clarified that decoupled subsidies have contributed to productivity growth in agriculture and on-farm product adjustment using the farm level data in Irish, Dutch, and Danish agriculture. Cillero et al. (2018) examined the technical efficiency of Irish beef farms and found that positive effect of coupled payments under Common Agricultural Policy was maintained after the replacement with decoupled income support. The allocation of direct payments varies among regions. In Japan, the subsidies for the production in hilly and mountainous production were allocated to the farmers who entered into an agreement in a settlement. The farmlands were primarily maintained in each agreement in the first policy period. Conservation with multiple settlements (i.e. broad-based community agreements) is now challenging because of the small size of settlement. Previous studies on broad-based form of community agreements were conducted by Yamaura (2007), Yonezawa and Takeuchi (2006), Takagishi and Hasizume (2010), and Yasunaga (2016, 2018). Yamaura (2007) analyzed the actual situation of broad-based management using field survey data and the data on community agreements from the financial years (FY) 2000 and 2005 in the Niigata and

2 Characteristics of Collective Conservation of Farmlands with Broad-Based. . .

19

Table 2.1 Changes in measures of direct payment program for hilly and mountainous areas from first period to fourth period Policy period First period: fiscal years 2000–2004

Second period: fiscal years 2005–2009

Third period: fiscal years 2010–2014

Fourth period: fiscal years 2015–2019

Measures Condition of conservation Conserve at least one hectare of the farmland including the ridge of earth between rice fields and the slopes with the help of a community agreement or other agreement with a 5-year term The aggregate of the agricultural land of estates that is necessary to be integrated for farming by the same farm organization or the same farmers is less than one hectare The government supports the community agreements that ensure stable agricultural production for sustainability. The government adds the following scheme for sustainable agriculture in the communities 1. Introduces a masterplan indicating future vision of the community in each community agreement 2. Allocate a two-stage subsidy Government reduces the basic subsidy up to 80% and adds 20% if the community encourages specific activities for sustainability. This is called requirement A 3. Additional measures Introduces additional subsidies if the agreement gathers additional farmland for the main farmers, establishes the enterprise, or restores abandoned agricultural land Establishes an organization for farming and conservation, and/or gathers farmland for main farmers in the community. This is called requirement B The government introduces additional measures to deal with the aging community 1. The government enriches the contents of the two-stage subsidies. For example, if the agreement increases farmland committed to conservation 2. It relaxes the estate requirement. That is, it becomes possible for an agreement to contain enclave, and estate less than one hectare 3. Additional measures The government adds subsidies, if an agreement supports small or aging agricultural settlements The government adds the subsidies, if the members in an agreement support each other such as in mowing the grass, farm operation using machine, etc. This is called requirement C The government introduces additional measures to deal with small and aging communities 1. Reorganization of requirements A and B 2. Additional measures The government adds subsidies, if an agreement merged with a nearby agreement or agreements and maintain the farmlands on a wider scale The government adds subsidies, if an agreement newly supports farmland conservation in nearby small or aging communities The government adds subsidies, if an agreement maintain farmlands on super steep slopes where the production is particularly difficult 3. The government relax the obligation to return the subsidy if an agreement cannot be continued during the policy period

Source: The Ministry of Agriculture, Forestry and Fisheries

20

N. Yasunaga

Yamaguchi prefectures. This study confirmed that lending and borrowing of farmlands by farmers affected such broad-based agreements and that such agreements include small agricultural settlements nearby that have allocated more subsidies to positive activities than basic activities. Yonezawa and Takeuchi (2006) considered the characteristics of community agreements using the average data of community agreements in FY2000 to FY2004 from the former Tokamachi Town in Niigata prefecture. The typological analysis showed that in the larger groups of agreements where multiple settlements were in cooperation, the continuation of the farmland management was ensured by entrusting the farm management work to the production unit organized in that area. Takagishi and Hasizume (2010) examined the effect of integration using data from the questionnaire survey for whole agreements that was conducted by the Ministry of Agriculture, Forestry and Fisheries in FY2007, around middle of the second period. Based on the changes that had occurred between FY1999 and FY2007, it was concluded that integrated agreements indicated positive activities such as cooperation in farming activities, increased frequency in member meeting, and activities undertaken for generating successors. Yasunaga (2016) quantitatively examined the relationship between integration and the activities undertaken for regional promotion using the FY2010 data on community agreements in the Shimane prefecture. The analysis suggested that the integration of agreements was not positively related the expansion of the areas covered under the agreement and the promotion of cooperation for value-added agriculture. However, the participation of the corporation and the involvement of community organizational support in integration affected promotional activities positively. Although the abovementioned studies have been conducted, few studies have been undertaken to examine the relationship between the condition of regional agriculture and effective farmland conservation quantitatively. Therefore, the purpose of this study is to elaborate on the characteristics of broad-based community agreements considering aspects like rural farmland conservation, diversity of rural communities, and vitalization of the community.

2.2 2.2.1

Hypothesis in this Study Hypothesis

Figure 2.1 shows the target of this study. In the first period of the policy, some broadbased community agreements were entered into by multiple rural communities (right-hand side of Fig. 2.1). From the second period, integrated community agreements were entered into (middle of Fig. 2.1). This study was conducted with these two broad-based agreements as subjects. Using actual condition survey data and statistical data in the Shimane prefecture, we empirically examine the characteristics of broad-based community agreements based on the following hypothesis.

2 Characteristics of Collective Conservation of Farmlands with Broad-Based. . .

Rural Community

Rural Community

Rural Community

Community Agreement

Community Agreement

Integrated Community Agreement

Rural Community

21

Rural Community

Community Agreement with Multiple Communities

Broad-based Community Agreement

Fig. 2.1 Broad-based form of community agreements that are being studied

Hypothesis 1 The form of the community agreements depends on the agricultural condition of “shuraku.” Integration is opted based on the scale of agricultural production and the size of the agricultural-related enterprise. Hypothesis 2 The integration of agreements is restricted by the geographical location of the communities. Therefore, the effectiveness of collective conservation in communities varies across broad-based community agreements. Hypothesis 3 The promotion of collective conservation of farmlands through broad-based agreements is not necessarily proportional to the diversity of the community and agricultural productivity.

2.2.2

Study area of this Study

Table 2.2 shows the actual condition of community agreements in Japan. There are many rural communities in the Chugoku and Shikoku regions. Moreover, the rate of conservation area covered by agreements is high following that in Hokkaido. However, the participation numbers of members per community agreement is low. Regarding broad-based agreements, the rate of rural communities entering into broad-based agreements is low. Chugoku and Shikoku regions have many hilly and mountainous communities, so there are still numerous problems faced in the conservation of the rural communities and in effective farmland management. Therefore, we selected the Shimane prefecture in Chugoku and Shikoku regions as the study area.

28.8 8.0 2.8 10.4 6.6 11.4 23.7

15.4 10.8

7537 18,295 30,756 11,600 9500 12,663 32,288

25,658 880

Rate of conservation area covered by agreements (%) 14.9 10.2

14 566

919 16 8 14 9 12 11

FY2010 25 13

15 428

909 16 8 16 9 12 11

FY2014 25 13

14 421

970 17 9 17 9 12 11

FY2015 26 13

22 193

54 23 24 24 24 24 19

FY2010 22 22

22 194

50 23 24 25 23 24 19

FY2014 22 22

22 196

58 23 26 29 24 24 20

FY2015 23 23

Member participation number per community agreement (person)

60.1 70.0

98.4 62.6 36.9 85.5 40.6 40.7 35.4

Rate of rural communities that entered into as broadbased agreements (%) 55.9 51.9

8.2 20.0

47.5 3.1 10.1 5.7 3.1 3.6 8.8

Rate of agreements that consist of multiple communities* (%) 7.7 6.9

Source: Ministry of Agriculture, Forestry and Fisheries. State of achievement of direct payment policy to hilly and mountainous areas in 2014 Note: Asterisk was calculated based on the survey in October 2003 by Ministry of Agriculture, Forestry and Fisheries

Japan Japan except Hokkaido Hokkaido Tohoku Kanto Hokuriku Tokai Kinki Chugoku and Shikoku Kyushu Okinawa

Number of rural communities 149,177 141,640

Conservation area for subsidies per community agreement (ha)

Table 2.2 Scale of community agreements under the direct payment policy to hilly and mountainous areas in Japan

22 N. Yasunaga

2 Characteristics of Collective Conservation of Farmlands with Broad-Based. . .

2.3 2.3.1

23

Actual Conditions of Collective Conservation Through Broad-Based Community Agreements Integrated Community Agreements Entered Since 2005: Case Studies

Tables 2.3 and 2.4 indicates the actual condition of the agreements. For instance, community Agreement E consists of two rural communities called okuyudani kami and okuyudani simo from fiscal year 2005. Thirty-five farmers participated in the agreement. The subsidies received were about 7.7 million yen in total. Regarding to the allocation of subsidies, more than 60% has been allocated for the community and less than 40% has been allocated for the individual conservation activities undertaken by farmer. Regarding to conservation of farmlands, agricultural producers’ cooperative corporation has been established to conserve farmlands in the areas covered by both communities. The agreement purchased agricultural machineries such as combines, drying machines, and helicopters for spraying pesticides. There has been an increase in the usage of drying machines for increasing efficiency in agricultural work. To vitalize the community, glutinous rice is being produced in parts of the rice fields. In addition, the effective utilization of the female labor force is also being considered. Community Agreement F consists of two rural communities called koai and miyori from the fiscal year 2005. Forty-two farmers participated in the agreement. The subsidies received were about 8 million yen in total. Regarding the allocation of subsidies, 90% of the subsidy has been allocated for the community, 10% has been allocated the individual conservation activities undertaken by the farmer. Regarding conservation of farmland, agricultural producers’ cooperative corporation was established to efficiently conserve farmland within the area covered under the agreements. The cooperation has resulted in the sale of regional agricultural products. Regarding vitalization of the community, the production of food products like miso has been initiated under the agreement. Community Agreement G consists of four rural communities that operate as an agricultural-run union to encourage agricultural production and sales from the fiscal year 2010. Thirty-two farmers participated in the agreement. The subsidies received were about 4.6 million yen in total. Regarding allocation of subsidies, 70% has been allocated for the community, 30% has been allocated for the individual conservation activities undertaken by the farmer. For conservation of farmlands, agricultural producers' cooperative corporation was established. The agreement has used a part of the subsidies to lumber a part of forestland for eliminating shadows in the paddy, and for planting cherry trees on the landscape. Regarding vitalization of the community, they are taking up cultivation of vegetables. The established corporation aims to provide year-round employment through farming.

Corporation

Conserve within elementary school district

Machine use association Participate Conserve within the oaza in elementary school district

Entered into by six agricultural settlements 5500 50

Entered into with nearby settlements and for cooperation with nearby agreements 1700 50

Participate Conserve same as the range of community agreement

Entered into by nearby four agricultural settlements 5600 50

6

2

4

28

43

9

250 m 59

280 m 14

50 m 12

Conserve within the area of nearby three agreements

Entered into with three agricultural settlements 1000 100

3

12

FY2005 (integrated) 40 m 23

Agreement D Gotsu City

Conserve within the elementary school district

Corporation

7700 60

Integrated by nearby two agreements

2

36

Agreement E Okuizumo Town FY2005 (integrated) 320–350 m 35

Integrated community agreements

Participate Conserve within the elementary school district

Corporation

8000 90

Integrated by nearby two agreements

2

43

Agreement F Okuizumo Town FY2005 (integrated) 300–360 m 42

Note 1: The survey was conducted from November to December 2013 and August to September 2014 Note 2: Altitude (height), subsidy, and distribution rate of subsidy allocated to overall community activities show the approximate value

Subsidy (thousand YEN) Distribution rate of the subsidy to the activities as the overall community (%) Participation of the corporation Participation of non-farmer Geographical range covered under the Land, Water and Environment Conservation Policy

Altitude (height) Number of farmers who participated in the agreement (person) Area covered under the agreement (ha) Number of rural communities Cooperation among rural communities

The time entered into

Agreement Municipality

Community agreement with multiple communities Agreement Agreement A B Agreement C Gotsu City Okuizumo Unnan City Town FY2000 FY2000 FY2000

Table 2.3 Actual conditions of community agreements with multiple communities

Participate Conserve within the selfgovernment association

Corporation

4600 70

Integrated by nearby four agreements

4

32

FY2010 (integrated) 400m 8

Agreement G Unnan City

24 N. Yasunaga

Propensity toward farmland conservation

Agreement Municipality The time entered into Geographical type of broadbased agreement

Collaborate with members for pest control work. Farm work management differs

Initially, this area consisted of two agricultural settlements divided by a river as a boundary. After that, each settlement was divided into two settlements. The nearby two settlements entered into an agreement with each other

If a farmland cannot be conserved by one farmer, another farmer will

It is very complicated for the farmer to borrow and lend the farmland under agricultural settlements. Considering the above point, the agreement was entered into within the range of the cohesive unit

Utilizing part of paddy fields as grazing lands for livestock and planting some

In this area, oaza consists of four agricultural settlements. The union for agricultural machinery use exists within the oaza

Community agreement with multiple communities Agreement A Agreement B Agreement C Gotsu City Okuizumo Town Unnan City FY2000 FY2000 FY2000

Table 2.4 Actual condition of broad-based community agreements (continue)

Utilizing the subsidies for purchasing pest control machines and on pest

Encourage farmland management by corporation. In the future, it is desired that main

Integrated community agreements Agreement D Agreement E Gotsu City Okuizumo Town FY2005 FY2005 (integrated) (integrated) Entered in the Although this area of agricularea was origitural settlements nally divided into using a common two agricultural waterway settlements, a communal place for agricultural work existed because farmlands were not situated far away between the settlements

Encourage farmland management by corporation. In case of abandoned land, the

Agreement F Okuizumo Town FY2005 (integrated) Because the population number decreased in a settlement under the agreement, the agreement was decided to be integrated with another agreement operating within the range of the same valley

(continued)

Agreement G Unnan City FY2010 (integrated) Agricultural Technology Improvement Action Union existed in each of the four agricultural settlement. Initially, each settlement entered into a community agreement. Along with the incorporation of regional agriculture, each agreement was integrated within the range of selforganization Utilizing subsidies for lumbering a part of the forestland in order to

2 Characteristics of Collective Conservation of Farmlands with Broad-Based. . . 25

Main farmer's age is in seventies. Female farmer’s age is in eighties. Due to aging, we cannot consider the plan for community vitalization

We are considering the method that can maintain the settlement with few farmers

If a farmer is overburdened with farm management work, farming corporations in these areas play an important role as contractors of the farm work Initially, we had considered establishing a corporation. However, some farmers were opposed to this idea. Therefore, corporation has not been established yet If there is a no financial support from the government, management by the machine unit will not be able to continue We produce glutinous rice in parts of the rice fields. In addition, we have considered the effective utilization of female labor force

Corporation has become the main producer in the community. On the other hand, that the part-time farmers' interest in farming will diminish is a matter of concern

We are trying to grow in greenhouses so that younger farmers can stay in this region

Farmers consist of part-time farmers. Therefore, now, we are not considering the corporation of community farming. We are struggling to find what crops we should produce

farmland management shifts from the farmers to the corporation

control work. Six main farmers work on farmlands that are difficult for aging farmers to work

landscape crops in the paddy fields. However, area of agreement has been decreasing due to aging farmers

in each farm because the time taken for work on each farm is different. Therefore, each farmer manages farm individually There remains a reserve of subsidies. It is a struggle trying to use the reserve effectively

manage that farmland. Farmers will mutually compensate each other

Integrated community agreements Agreement D Agreement E

Community agreement with multiple communities Agreement A Agreement B Agreement C

We are considering the method that can inculcate efficiency in regional agriculture such as purchasing materials jointly by collaborating with nearby agreements

We are trying to produce food products such as miso

agreement will not correspond to it

Agreement F

Note 1: The survey was conducted from November to December 2013 and August to September 2014 Note 2: Altitude (height), subsidy, and distribution rate of subsidy allocated to overall community activities show the approximate value

Subject for future development

Propensity toward community vitalization

Agreement

Table 2.4 (continued)

Due to aging farmer population and decrease in rice prices, it is quite difficult to maintain the level of conservation at status quo

We have to do the cultivation of vegetables. The established corporation will aim to provide yearround employment through farming

eliminate the shadow on the paddy, and planting cherry trees on landscape

Agreement G

26 N. Yasunaga

2 Characteristics of Collective Conservation of Farmlands with Broad-Based. . .

2.3.2

27

Comparisons with Other Agreements Including Some Communities Entered Into in 2000: Case Studies

For instance, Community Agreement B consists of five rural communities called hori, yamane, imonoya, kawagohara and yahata since the fiscal year 2000. Forty-six farmers participated in the agreement. The subsidies received were about 5.5 million yen in total. Regarding allocation of subsidies, 48% has been allocated for the community, 52% has been allocated for the individual conservation activities undertaken by the farmer. Regarding conservation of farmlands, agricultural producers’ cooperative corporation was established. Two communities (yamane, imonoya) assigned the rice pest control work to agricultural producers’ cooperative corporation in the community using a part of the subsidy. The rice harvesting work was mainly operated by the corporation as per the agreement. In kawagohara, farmers purchased a rice planting machine collectively. Thus, under the agreement, the joint use of agricultural machinery is increasing. Regarding vitalization of the community, if a community farmer is overburdened with farm management work, the corporation plays the role of a contractor. They have been devising means to maintain management using a limited number of people. Community Agreement C consists of four rural communities in the geographical range of oaza in the fiscal year 2000. Fifty-nine farmers participated in the agreement. The subsidies received were about 5.6 million yen in total. Regarding the allocation of subsidies, 50% has been allocated for the community, 50% has been allocated for the individual conservation activities undertaken by the farmer. Regarding conservation of farmlands, they used a part of the paddy fields as grazing land for livestock, and planted some landscape crops in the paddy fields. Nevertheless, the area under the agreement has been decreasing due to aging farming population. Regarding the vitalization of the community, establishment of a corporation has been considered. However, that has not materialized because some of the farmers are opposed to this idea.

2.3.3

Characteristics of the Community Agreements

Figure 2.2 shows the characteristics of the utilization of subsidies in the case of broad-based community Agreement B. It can be considered in terms of both farmland conservation and rural community vitalization as Hashiguchi (2011) mentioned. The subsidies allocated under direct payment to hilly and mountainous areas can be freely used by the community unlike other agricultural subsidies. The agreement can allocate the entire subsidy to collective activities in the community. In the case of Agreement B, these subsidies were used to make the community business stable by entrusting the agricultural work to the community farming corporation. This tendency was same as observed in the cases of Agreements E, F, and G. These features can also be confirmed from the research of Kashiwagi (2019).

28

N. Yasunaga

Voluntary organization for community farming

Direct payment to hilly and mountainous areas subsidies Broad-based management Community agreement

Community agreement

Community agreement

Community agreement

Farmland conservation

Outsource an agricultural work to the corporation using a part of the fund

Incorporation of the business

Stabilization of the business

Community vitalization

Fig. 2.2 Characteristics of utilization of direct payment subsidies

2.4 2.4.1

Characteristics of Collective Conservation of Farmlands in Rural Communities Analytical Framework

Figure 2.3 shows the analytical view of this study. We divided collective conservation through the community agreements into two stages, that is, participation in the agreement (division 2) and cooperation by agreement (division 3). In addition, we considered the basic condition as an agricultural production condition (division 1). Regional agriculture was considered the basic condition to promote the collective conservation of farmland. Based on the above consideration, we constructed a model by applying the data envelopment analysis by Cooper et al. (2005, 2006), Zhu (2009). We constructed the slack-based measure model called network data envelopment analysis (DEA; Tone and Tsutsui 2009) to calculate the overall and divisional efficiency as an effectiveness measure of collective conservation of farmlands in communities. A slacks-based measure (SBM) model is the method that tries to capture the inner structure of an enterprise in more detail than an ordinary DEA model. It is one of the suitable methods to capture the overall collective conservation of farmlands in the communities.

2.4.2

Collection of Data and Description

We used the data of rural communities obtained from an agricultural census surveyed by the Ministry of Agriculture, Forestry and Fisheries. The data on

2 Characteristics of Collective Conservation of Farmlands with Broad-Based. . .

29

Labor use Machine use Land use for Farm Management Basic Production Condition

Division 1: Production

(FY2010) Farm Household Agricultural Expected Farmland and Abandoned and Non-farm Household Sales Revenue Agricultural Land Members from Agriculture （Arable Land)

Division 2: Participation Collective Conservation under the Agreement

Amount of Subsidies

Members of Agreement

Conservation Area Covered by the Agreement

(FY2014 ) Division 3: Cooperation Collective Activities for Farmland Conservation

Fig. 2.3 Modeling of effectiveness of collective conservation of farmlands

community agreements obtained from the Shimane prefecture surveyed the achievement of community agreements in the fiscal year 2014 under the direct payment policy to hilly and mountainous areas and the data obtained from the basic survey on agricultural infrastructure by Ministry of Agriculture, Forestry and Fisheries in fiscal year 2014. This study focused on the agreements that have been continued from the beginning of third period. Table 2.5 provides a summary of targeted community agreements. In the DEA analysis, it is necessary for the items of input and output to be positive. Therefore, we eliminated the data on regional agriculture that had zero value. The input data on agricultural production had significant variations among the agreements to the differences in the use of land, labor, and capital (machines). The differences were also reflected in the sales number of agricultural products (output data of regional agriculture). The sales number of agricultural products in integrated broad-based agreements was higher than that of the broad-based agreements with multiple communities. From the value of collective conservation, the people participating in the agreements were about thirty on an average. The majority of the participants were farmers with a few non-farmers as well. It varied across agreements. There were many participants in the integrated broad-based agreements as compared with the broad-based agreements with multiple communities. In addition, they had large areas covered by the agreement.

2592 36 30 3060 1743 1317

Thousand Household ha Thousand Thousand Thousand 30 27 3 20 7

41,264

Thousand

Agent Person Agent ha Item

19 16 42 5,654 41,971

ha Unit Person Day Hour

Unit

27 24 5 19 2

3309 1743 2002

8380 29 24

88,286

21 15 36 4,602 34,019

140 109 31 103 17

17,094 1743 11,743

58,821 132 112

417,000

11,023 74 186 19,086 138,600

3 3 0 3 4

306 1743 0

125 4 4

500

120 1 4 900 2,250

Integrated broad-based community agreements Average SD MAX MIN

24 22 3 14 7

2056 1743 875

1705 36 29

31,913

18 15 39 5,622 43,155

19 16 4 13 2

2101 1743 1170

4629 21 19

69,879

16 11 28 3,864 30,120

140 109 31 104 16

17,094 1743 11,743

58,821 132 112

500,750

12,660 74 186 19,086 150,975

2 0 0 1 3

94 1743 0

83 4 0

250

120 1 3 675 2,025

Broad-based community agreements with multiple communities Average SD MAX MIN

Note 1: Number of samples of integrated community agreement is 56. Number of samples of broad-based community agreements is 256 Note 2: Sample is used only in cases where the data on agricultural production is positive Note 3: Asterisk is indicated the data of community agreement obtained in FY2014

Basic condition of regional agriculture Input Use of arable land Number of tractors Number of agricultural labor Working days for agriculture Working hours for agriculture Sale Amount Output Of agricultural products Collective Conservation of farm land by agreement Input Expected revenue of agriculture Farm-related members Farmland and abandoned agricultural land Amount of subsidies* Intermediate input and Subsidies allocated to community* output Subsidies allocated to individual farmer* Members participation* Farmers* Non-farmers* Areas covered by agreement* Number of collective activities*

Table 2.5 Summary of condition of broad-based community agreements

30 N. Yasunaga

2 Characteristics of Collective Conservation of Farmlands with Broad-Based. . .

2.4.3

31

Effectiveness of Collective Conservation

Table 2.6 shows the results of efficiency analysis done by the network DEA framework. The average overall efficiency of integrated broad-based agreements was 0.48 that is the score of efficiency indicated zero to one in DEA. The value implies that it is as effective as close to one. The agreement that conserved large areas was regarded as effective. In divisional efficiency, divisional efficiency 1 was low. That is, there was a gap in the agricultural sector. In terms of areas conserved, in the case of over 30 ha, the average of divisional efficiency 1 was over 0.6. In addition, there was a difference between the result of the eastern and western regions. The results indicated that location could be a disadvantage for conservation. Following the survey on actual condition in the Shimane prefecture, effective agreements corresponded with the cases taken up as advanced cases. From the results, it was presumed that broad-based agreements were effective for collective conservation of farmlands. Yonezawa and Takeuchi (2006) pointed out that the agreement that conserved over 20 ha has well-equipped conditions for continuing with the management of farmlands. These results are consistent with the results of this study.

2.4.4

Classification of Collective Conservation

To classify collective conservation, we classified the efficiency of agreements using cluster analysis. In cluster analysis, we applied with Ward’s method in calculating distance between the clusters and used the Euclidean algorithm to calculate the distance between the samples. As a result of this analysis, we classified four groups based on efficiency. To capture the relationship between value of efficiency and the social characteristics of rural communities, we compared the social conditions such as diversification in farm sizes, diversification of neighborhood supporters, rate of non-farmer participations, rate of corporation, rate of agricultural production organization, and the rate of readjustment over 20 ha in paddy fields, based on Fujie (2008), Furuzawa and Kiminami (2009, 2010), and Chen and Kiminami (2015). It should be noted that the index of diversification was calculated by 1-H (H is sum of squares of rate of each group) which was used based on Fujie (2008). Diversification of farm size was calculated using the number of farming households operating the cultivated land. Diversification of supporters was calculated using the number of non-farming households that hold farmlands, non-commercial farming households that were self-sufficient, commercial farm households (full-time households, parttime with mainly farming, and part-time with mainly other jobs households distinguished by the degree of engagement). Table 2.7 shows the following results. CL1-2 was an efficient group in integrated community agreements in its entirety. Agreements in this group conserved large areas. The rate of corporation participation under the agreement was high compared

15

40

1 0.027 0.491

0.474

0.412 0.427 0.652 0.561

0.432

4

51

1 0.074 0.480

0.369

0.447 0.477 0.710 0.528

0.440

0.786

0.822 0.842 0.958 0.696

0.534

1 0.163 0.745

40

15

0.786

0.681 0.736 0.855 0.729

0.762

1 0.459 0.760

49

6

Divisional efficiency 3

0.705 0.527

0.548

0.546 0.500 0.884

0.477

1 0.034 0.571

41

12

0.749

0.548 0.555 0.872

0.526

1 0.091 0.598

52

1

0.734

0.952

0.751 0.918 0.982

0.624

1 0.186 0.788

32

21

0.883

0.855

0.862 0.816 0.858

0.940

1 0.628 0.876

45

8

Community agreements with multiple communities Overall Divisional Divisional Divisional efficiency efficiency 1 efficiency 2 efficiency 3

Note 1: The value of efficiency (the result on the left-hand side) was calculated based on the sample size of 55 using Network DEA (slacks-based measure). Only one sample was excluded because the subsidies allocated to the community were zero Note 2: The values in parentheses in the table indicate the number of samples Note 3: The value of efficiency (the result on the right-hand side) was calculated based on the sample size of 53 in Unnan city, Okuizumo town, and Iinan town that have more or less similar geographical conditions

Efficiency Number of efficient DMU Number of non-efficient DMU MAX MIX Average Area covered by agreement Less than 10 ha (22) 10–20 ha (12) 20–30 ha (10) Over 30 ha (12) Eastern part (Izumo) (25) Western part (Iwami) (30) Integrated agreement (13) Non-integrated agreement (40)

Integrated community agreements Overall Divisional Divisional efficiency efficiency 1 efficiency 2

Table 2.6 Efficiency of collective conservation through broad-based community agreements 32 N. Yasunaga

2 Characteristics of Collective Conservation of Farmlands with Broad-Based. . .

33

Table 2.7 Classification of collective conservation

Number of community agreements Divisional efficiency 1 Divisional efficiency 2 Divisional efficiency 3 Diversification of farm size※ Diversification of supporters※ Rate of non-farmer participation (%) Rate of corporation participation (%) Rate of agricultural production organization participation (%) Rate of paddy field that has been readjusted over 20 ha (%) Area of Agreement (ha)

Integrated community agreements CL1- CL1- CL11 2 3 18 18 13

CL14 6

Community agreements with multiple communities CL2- CL2- CL2- CL21 2 3 4 19(7) 16(6) 10(0) 8(0)

0.122 0.571 0.649 0.634 0.656

0.976 0.938 0.816 0.582 0.678

0.119 0.949 0.857 0.591 0.654

0.948 0.250 0.713 0.521 0.688

0.725 0.961 0.964 0.600 0.670

0.685 0.976 0.754 0.628 0.665

0.314 0.533 0.823 0.553 0.636

0.298 0.317 0.980 0.616 0.695

4.33

4.38

5.39

2.78

7.81

3.45

7.69

7.91

0.69

2.04

1.82

0.00

4.01

0.49

0.67

0.99

0.02

0.05

0.03

0.04

4.39

5.12

10.85

7.74

43.3

31.5

17.0

3.9

33.5

29.6

12.7

22.2

15.4

30.9

17.0

5.3

22.6

25.5

14.2

7.6

Note 1: The agreements were classified into four clusters (CL1 to CL4) using cluster analysis based on the data from partial efficiency Note 2: The value in above table shows the average value of each cluster Note 3: The values in parentheses in the table indicate the number of integrated broad-based community agreements Note 4: ※ is indicated the value surveyed in 2010, the other value was surveyed in 2014

to the other groups. Besides, paddy fields had been readjusted in this community. CL1-4 was an efficient group except for divisional efficiency 2. In this group, area of agreement was small, and diversification of farm size was low. This implied homogeneity in regional agriculture. Although the rate of non-farmer participation under the agreement was low, diversification of supporters was high. This implies that there is an environment of cooperation in the community, and it is easy to conserve efficiency in small scale. CL1-3 was an efficient group except for divisional efficiency 1. The area of agreement and diversification of farm size were slightly high. More non-farmers participated in the agreement compared with other groups, although diversification of supporters was low. The level of readjustment of paddy field was not high. This group has a subject on efficiency of regional agriculture such as the improvement in the infrastructure of agriculture. CL1-1 was not an efficient group. The area covered by the agreement was of medium size. The readjustment of paddy field was done. The diversification of farm size was high. These factors imply that each farmer has a way of conserving his/her farmland that is unique and different from the other groups.

34

N. Yasunaga

Regarding community agreements with multiple communities, CL2-1 was efficient in its entirety. This group contained 36.8% of integrated community agreements. The rate of readjustment of paddy fields and rate of participation of non-farmers and corporations were high compared to the other groups. CL2-2 was also efficient compared to CL2-3, CL2-4. This group contained 37.5% of integrated community agreements. The agreement in this group has diversification of farm size and supporters. However, CL2-3 and CL2-4 were not efficient. These groups did not include the integrated community agreements. In CL2-3, we confirmed low diversification of farm size and supporters although the rate of agricultural production organization and rate of non-farmers were high. It is presumed that low rates of readjustment of paddy fields affect the efficiency of collective conservation. CL2-4 was not more efficient than CL2-3. The area of agreement was small and the rate of readjustment of paddy fields was low although there was relative participation by the agricultural production organization and non-farmers. Yonezawa and Takeuchi (2006) pointed out that agricultural production organizations tend to participate in large-sale agreements. Their finding is not consistent with this study. We confirmed that low efficient agreements were small scale, had low levels of readjustment of paddy fields, and not integrated.

2.5

Conclusions

In this study, we examined the relationship between agriculture and collective conservation through the broad-based agreements under direct payment policy to hilly and mountainous areas. As a result of the analysis, we confirm Hypothesis 1 regarding the actual condition of the agreements. Regarding Hypothesis 1, the form of community agreements depends on the agricultural conditions of shuraku. Integration has been selected for effective conservation and vitalization of agriculture. In particular, incorporation of agricultural organization has caused integration of agreements. Regarding Hypothesis 2, we confirmed that the integration of large-scale agreements is efficient for collective conservation. In particular, there is a gap among community agreements in terms of the efficiency in agricultural production and geographical location of the communities. Therefore, effectiveness of collective conservation varies among broad-based communities. Regarding Hypothesis 3, we classified the broad-based agreements to capture the characteristics of collective conservation related to rural social conditions. In integrated agreements, efficient groups conserve larger areas of farmland and the rate of participation of corporations is high. The rate of readjustment of paddy fields is also high. On the other hand, low efficiency groups have diversification of farm size.

2 Characteristics of Collective Conservation of Farmlands with Broad-Based. . .

35

In community agreements with multiple communities, high-efficient group have high rate of readjustment of paddy fields. In addition, there is relative participation of corporations in the agreement. On the other hand, low efficiency groups are small scale. Moreover, there was level of readjustment of paddy fields although agricultural production organizations participated in the agreements. The scale of the agreement and the low level of readjustment of paddy fields have become a bottleneck for collective conservation. These factors have to be improved to improve collective conservation.

References Chen Y, Kiminami L (2015) Resident consciousness towards participation in common-agricultural resources management: focusing on collective action in Niigata Prefecture. Stud Regional Sci 45(4):471–491 Cillero MM, Thorne F, Wallace M, Breen J, Hennessy T (2018) The effects of direct payments on technical efficiency of Irish beef farms: a stochastic frontier analysis. J Agric Econ 69 (3):669–687 Cooper WW, Seiford LM, Tone K (2005) Introduction to data envelopment analysis and its uses with DEA-solver software and references. Springer, Cham Cooper WW, Seiford LM, Tone K (2006) Data envelopment analysis-a comprehensive text with models, applications, references, and DEA-solver software. Springer, Cham Fujie T (2008) Collective action for the management of rural common-pool resources. J Rural Econ 2008:77–84 Furuzawa S, Kiminami L (2009) Study on collective management of rural common-pool resources and social capital. J Rural Plan Assoc 28(3):121–127 Furuzawa S, Kiminami L (2010) Policy for activities to manage common-pool resources in Niigata Prefecture. Stud Regional Sci 40(1):173–187 Goodwin BK, Mishra A (2005) Another look at decoupling: additional evidence on the production effects of direct payments. Am J Agric Econ 87:1200–1210 Hashiguchi T (2011) Evaluation and prospect for the system of direct payment of subsidies to farmers in hilly and mountainous areas in Japan. J Rural Econ 82(4):258–264 Kashiwagi M (ed) (2019) Local regeneration, and the emergence of innovative management systems and governance structures: new challenges for agriculture and farm villages. Waseda University Press Co., Ltd., Tokyo Kazukauskas A, Newman C, Sauer J (2014) The impact of decoupled subsidies on productivity in agriculture: a cross-country analysis using microdata. Agric Econ 45:327–336 Ministry of Agriculture, Forestry, and Fisheries (1999) Food, agriculture and rural areas basic act. http://www.maff.go.jp/j/kanbo/kihyo02/newblaw/newkihon.html Takagishi Y, Hasizume N (2010) Effects of integration at community agreements on direct payment system in hilly mountainous areas. J Rural Econ 2010:260–267 Tone K, Tsutsui M (2009) Network DEA: a slack-based measure approach. Eur J Oper Res 197:243–252 Weber JG, Key N (2012) How much do decoupled payments affect production? An instrumental variable approach with panel data. Am J Agric Econ 94(1):52–66 Yamaura Y (2007) Maintenance of farmland with assistance of other communities in mountainous areas. Jpn Agric 214:1–130 Yasunaga N (2016) Factors that affect advancing cooperation in community agreements under the direct payment policy in hilly and mountainous areas: community management in Shimane prefecture. Stud Regional Sci 46(1):131–146

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Yasunaga N (2018) Collective conservation of farmlands through community agreements under the direct payment policy in Shimane prefecture. Bull Fac Life Environ Sci 23:9–15 Yonezawa K, Takeuchi K (2006) A Classification of community agreements according to scale of the agreements and topographical location of farmlands for a direct payment measure for hilly and mountainous areas in Japan: a case study in former Tokamachi-shi, Niigata Prefecture, Japan. J Rural Plan Assoc 25:497–502 Zhu J (2009) Quantitative models for performance evaluation and benchmarking. Springer, Cham

Chapter 3

Resource Conservation and Community Vitalization Forms of Rural Communities in Hilly and Mountainous Areas Nobuyoshi Yasunaga

Abstract This study examines the relation among location characteristics, resource conservation, and vitalization forms of rural communities in hilly and mountainous areas in Japan. Using data from rural communities in the Shimane prefectures, we examined the community location factors affecting the resource conservation and vitalization forms in hilly and mountainous areas in relation to management forms, including utilization of subsidies under the Japanese-style direct payment policy. Our analysis resulted in the following findings. First, multifunctional payment projects with broad-based management are contributing to the formation of new social networks between the residents in these communities and the organizations that conduct the projects. Second, bridging social capital is functioning within a range of elementary school districts, which complements bonding social capital in some respects. Third, location factors such as multiple-valley and small parcels may increase conservation costs within multiple communities. Fourth, local government officials report that there is little additional grant funding for broadening the management area with multiple communities relative to the cost of broadening the area. This limited distribution of the subsidies may weaken the promotion of broad-based conservation. Although the expansion of the conservation area with multiple communities is effective, results of this study imply that it is appropriate to start in an area with local attachments. Keywords Rural community · Direct payment program · Multifunctionality · Community vitalization · Hilly and mountainous areas · Location characteristics · Social network

N. Yasunaga (*) Institute of Agricultural and Life Sciences, Academic Assembly, Shimane University, Matsue, Shimane, Japan e-mail: [email protected] © Springer Nature Singapore Pte Ltd. 2020 N. Yasunaga, N. Inoue (eds.), Farm and Rural Community Management in Less Favored Areas, New Frontiers in Regional Science: Asian Perspectives 44, https://doi.org/10.1007/978-981-15-7352-1_3

37

38

3.1

N. Yasunaga

Introduction

Japan introduced the direct payment program to hilly and mountainous areas in 2000. This program aimed to correct the disparities of agricultural productivity between flat farming areas and mountainous farming areas. Since 2007, the ministry of Agriculture, Forestry, and Fisheries also began to take measures for conservation of farmlands, water, and rural environment. This measure was distinct from the direct payment program. The measure promoted environmentally friendly farming based on basic conservation activities such as increasing the life of irrigation and drainage facilities in regional agriculture. However, due to the restrictions of environmental farming, the measure was divided into the subsidies for conservation of multifunctionality in rural areas and the subsidies for the promotion of environmentally friendly farming (Iiguni 2015). These three measures were organized as policy framework named “Japanese-style direct payment policy” in 2014. The law on the Promotion of the Multifunctionality of Agriculture was enacted in 2014 and came into effect in April 2015. Japan’s lack of young farmers presents an issue in maintaining the multifunctionality of rural areas. A community-based farming system comprising multiple farmers, other residents, and organizations is needed. The area of farmlands that is being worked on for conservation of multifunctional functional activities is not necessarily large. The coverage rate, which is the implementation rate for the area covered by the direct payment policy for multifunctionality, is approximately half of the total area of farmlands. Additionally, some rural communities that are engaged in conservation activities through the direct payment program for hilly and mountainous areas do not engage in the direct payment program for multifunctionality. Moreover, since the population and area scale of rural communities in hilly and mountainous areas is small, the promotion of cooperation with other rural communities, the promotion of integration to broad-based organization, and efficient regional development are under consideration. Several studies examine the multifunctional rural areas and residents’ efforts to conserve (Matsushita 2008; Furuzawa and Kiminami 2009; Fukushima et al. 2012; Nakamura et al. 2012; Chen and Kiminami 2015; Okuyama and Ozawa 2015; Ito et al. 2018). Matsushita (2008) examined the effect of social capital to the cooperative activities under the direct payment program for multifunctionality using data from organizations participating in the project under the measure for the conservation of farmlands, water, and rural environment in the Shiga prefecture. This study clarified that bonding social capital and bridging social capital have different level of influence on the cooperation activities under the measures for the conservation of farmlands, water, and rural environment. Specifically, Matsushita (2008) found that there is a negative correlation between bonding and bridging social capital relative to the accumulation of social capital. Furuzawa and Kiminami (2009) examined the influence of participation in the cooperative activities on the accumulation of social capital using survey data

3 Resource Conservation and Community Vitalization Forms of Rural Communities in. . .

39

obtained from the organizations participating in the project in 2008 under the measure for conservation of farmlands, water, and rural environment in the Niigata prefecture. The results showed that the intention for social capital and the residents’ evaluation for multifunctionality and biodiversity significantly affect the residents’ participation in environmental conservation and rural development. The degree of participation positively influences the evaluation of social capital accumulation under the measures for conservation of farmlands, water, and rural environment. Nakamura et al. (2012) examined the effect of residents’ attributes to their evaluation of the direct payment program for multifunctionality using survey data from the research conducted by the Shiga prefecture. The data showed that the experiences of working with nonprofit organizations and participating in community meetings significantly influence the residents’ evaluation of the projects. Fukushima et al. (2012) examined the effect of bridging social capital and bonding social capital to the degree of residents’ participation in regional resource conservation activities using survey data obtained from three municipalities located at the north part of the Kyoto prefecture. They clarified that bonding type trust rather than bridging type trust has substantial influence on participation in the regional resource management. Chen and Kiminami (2015) clarified the effect of measures for conservation of farmlands, water, and rural environment using survey and case study data obtained from organizations participating in the project from 2008 to 2012 in the Niigata prefecture. Residents’ participation in cooperative activities reduces the burden of conservation work under the policy program. The participation also contributes to improving residents’ levels of understanding for maintaining regional resources and environmental conservation. In addition, these understanding also positively influence holding meetings and events. However, the meetings and events have a little effect on community vitalization. Fostering leadership of social factor also has a little effect on the residents’ cooperative power. Similarly, Okuyama and Ozawa (2015) examined the relationship between multifunctional payment policy and the formation of social networks using survey data obtained from organizations participating in the direct payment program for multifunctionality in Yuza town, located in the Yamagata prefecture. They found that “improving farmlands and farm roads,” “offering farming materials,” and “increasing opportunity of communication and cooperation” resulted in positive evaluation of the measures for the conservation of farmlands, water, and rural environment (Okuyama and Ozawa 2015, p. 140). These policy evaluations are related to bridging type social networks, such as participation in sports activities, rather than bonding type social networks, such as the participation in the residents’ association. Ito et al. (2018) examined the factors that affect residents’ participation in the program of the measure for farmland, water, and environmental conservation. They clarified that collective diversification of rice production, time distance to densely inhabited district (more than 30 minutes to DID), and existing board member of agricultural cooperative affect participation in the program. They also concluded that financial incentives have positive effect on stewardship of the scheme.

40

N. Yasunaga

Despite the effort of these studies, however, the relationship between efforts for conservation of multifunctionality and community building in hilly and mountainous areas has not been sufficiently clarified. Therefore, this study qualitatively examines the relationship among community characteristics, promotion activity, and utilization of the direct payment program for multifunctionality, with a focus on hilly and mountainous areas.

3.2 3.2.1

Materials and Methods Background of Conservation of Rural Environment

Tables 3.1 and 3.2 provide an overview of the utilization of the direct payment program for multifunctionality, primarily based on the case of the Shimane prefecture. In the Shimane prefecture, the coverage rate, which is the ratio of the conservation farmland areas under the direct payment program for multifunctionality for the farmland area of an agricultural promotion area, is 56.0% in FY2018, whereas direct payments to hilly and mountainous areas covered more than 90% of the target farmlands. This represents a high percentage relative to the prefectures in the Chugoku agricultural region which has a 43% coverage rate. However, the direct payment program is not being used in the areas where there is a shortage of young farmers. In addition, the conservation area under the direct payment program is decreasing overall. Broad-based conservation with multiple rural communities is needed. One of the advantages of promoting conservation with multiple communities is that it is possible to integrate and share farming materials, equipment, human resources, and technology through cooperation efforts among the communities, wherein costs and administrative burdens are reduced. It also is easier to conduct rural experience activities in collaboration with school education, which is otherwise difficult for a single community to conduct on its own. Thus, it is inferred that collaboration not only reduces costs, but also contributes to the formation of new and diverse communities and social networks (Chen and Kiminami 2015; Okuyama and Ozawa 2015).

3.2.2

Actual Situations of Farmland Conservation Under the Direct Payment Program for Rural Multifunctionality

In this section, we share actual situations in the hilly and mountainous region of the Shimane prefecture by describing advanced cases. One example of a rural community working on its own is the region N of Misato town. This region belongs to hilly

Shimane prefecture Chugoku region Japan excluding Hokkaido Japan Shimane prefecture Chugoku region Japan excluding Hokkaido Japan 95,186 1,511,965

2,292,522 12,986 66,259 342,991

664,315

3076

27,514

28,348 1184

5574

25,627

25,958

Conservation area (ha) 22,776

26

13

12

81 11

55

31

Conservation area per organization or agreement (ha) 35

84

75

75

55 93

50

43

Percentage of conservation area (%) 56

53.09

44.984

9.047

93.589 1.926

82.123

6.348

Subsidies (billion yen) 1.571

2.0

1.8

1.6

3.3 1.6

3.0

2.1

Subsidies per organization or agreement (million yen) 2.4

Note 1: This table was created based on the activity reports of direct payments FY2018 published by the Ministry of Agriculture, Forestry and Fisheries Note 2: The value shows the organizations and conservation areas receiving the subsidies for maintenance of farmlands Note 3: The differences in subsidies reflect differences in initiatives such as improving regional resource conservation and farmland category

Direct payments to hilly and mountainous areas

Direct payments for multifunctionality

Number of organization and agreement 656

Table 3.1 Current activity situation of direct payments for rural sustainability

3 Resource Conservation and Community Vitalization Forms of Rural Communities in. . . 41

Fiscal year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Conservation area (ha)

19,005 19,856 20,087 20,084 20,319 19,662 19,871 21,706 22,504 22,681 22,434 22,652

Number of organization

438 477 486 486 493 456 468 604 647 663 642 656

43.4 41.6 41.3 41.3 41.2 43.1 42.5 35.9 34.8 34.2 34.9 34.5

Conservation area per organization (ha) 438 477 486 486 493 456 468 518 551 570 544 554

Note: This table was made based on the activities of Shimane prefecture

3

2

Policy period 1

1. Maintenance of farmlands

19,005 19,856 20,087 20,084 20,319 19,662 19,871 20,561 21,068 21,350 20,932 21,173

43.4 41.6 41.3 41.3 41.2 43.1 42.5 39.7 38.2 37.5 38.5 38.2

2. Improving regional resource conservation (cooperation) Conservation area per Number of Conservation organization (ha) organizations area (ha)

Table 3.2 Activities by type of grant under the direct payment for multifunctionality in Shimane prefecture

― ― ― ― 145 288 309 361 381 397 397 402

― ― ― ― 5486 13,119 13,987 14,906 15,622 15,904 16,400 16,497

― ― ― ― 37.8 45.6 45.3 41.3 41.0 40.1 41.3 41.0

3. Improving regional resource conservation (Life-prolonged operation of agricultural facilities) Conservation area per Number of Conservation organization (ha) organization area (ha)

42 N. Yasunaga

3 Resource Conservation and Community Vitalization Forms of Rural Communities in. . .

43

farming area and represents a community of 18 households that are located in the eastern part of the town with an area of 10.2 hectares, of which 9.9 hectares are paddy fields and 0.3 hectares are cultivated fields. The project started in 2007, and its main members include farmers and community associations. Because the project is being carried out in one community, the subsidy was only 490,000 yen in 2018. The members are now working together as an organization called “Agri-Net” to manage the weeds, waterways, and roads around the farmland that they used to manage individually. Utilizing 0.5 hectares of fallow fields, they began growing sunflowers and field mustard in 2014 as a means of conserving the rural landscape. Agri-Net is considering making vegetable oil squeezed from sunflower seeds as a gift to the Furusato Nozei donation project, which supports hometown or local municipalities. The subsidy also supports Agri-Net’s capture and use of wild boar for game meat dishes. In similar areas wherein a community is working alone, the subsidy is less than one million yen, given the small amount of farmland represented in the area. An example of conservation efforts with multiple communities is the environmental conservation association, located in the mountainous region of Gotsu city in the western Shimane prefecture. The area is located in a mountainous area more than 6 km away from the neighboring city. The conservation area of farmlands under the direct payment program for multifunctionality is 48.5 hectares, of which, 44.4 hectares are paddy fields and 4.1 hectares are cultivated fields. Participation includes 20 rural communities, with 36 non-farmers and 103 farmers. Additionally, farmers’ groups, community development councils, community associations, women’s groups, fire brigades, Japan Agricultural cooperatives, and volunteer groups are also involved. The union was established in 2007, when the measures for conservation of farmlands, water, and rural environments were launched, to manage resources efficiently by mowing farm roads and cleaning waterways that cannot be managed by individuals. In 2013, the area was damaged by heavy rainfall, but the grant money was used to remove sediment away from the waterways, lay temporary water pipes, and undertake other emergency measures. Workshops are also held to consider the future vision of the region relative to farmland conservation. The Hanataue rice planting ceremony, which is a local custom, also helps to attract about 100 visitors.

3.2.3

Analytical View and Method for Investigation

Figure 3.1 shows the conceptual framework of this study based on previous studies by Chen and Kiminami (2015), Kashiwagi (2019), and Yasunaga (2020). These studies suggested that it is necessary to look at the residents’ efforts relative to environmental conservation, economic activities, and social activities for rural sustainability. The residents have different location environments, such as farmland conditions or policy-utilizing conditions. Therefore, this study examined the relationship between rural conservation activities and community development activities, with a focus on characteristics of hilly and mountainous areas such as participation in the direct payment program. Due to locational differences, division

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Utilizing direct payment policy

Regionally specific conditions

Arbitrary District

Social vitalization

Cultural conservation

Resource conservation

Community Vitalization

Economic vitalization

Innovation based on regional resource

Forming new cooperation and networks

Fig. 3.1 Analytical view of this study

and coordination according to area size are needed (Kashiwagi 2019). We classified activity types under direct payment policy by regional location conditions and utilization of direct payment policy. This study also captured conservation in relation to the distinction between bonding social capital (cooperation within single community) and bridging social capital (cooperation with multiple communities). These aspects are related to the accumulation of social capital as a formation of new social networks (Meador 2019) under the direct payment program. This analytical view was applied to cases representing promoting areas in the Shimane prefecture in order to examine their relationship to confirmed effects obtained from actual projects. According to the current implementation scheme of Japanese-style direct payments in the Shimane prefecture, the number of rural communities receiving direct payments for multifunctionality is 252; the number of rural communities receiving direct payments to hilly and mountainous areas is 167; and the number of rural communities receiving both subsidies is 237. It is anticipated that some rural communities that are facing challenges, such as a shortage of younger farmers, may find it difficult to utilize the direct payment system. We expected each rural area to face special circumstances and challenges based on the local situation.

3 Resource Conservation and Community Vitalization Forms of Rural Communities in. . .

3.3 3.3.1

45

Results and Discussion Results

Figure 3.2 shows where the study areas are located. Table 3.3 also shows the actual conditions and composition of subsidies for multifunctional payments in the promoting districts. The districts are remote from metropolitan areas such as Hiroshima, Osaka, and Kobe city. Each case was examined by capturing the relationship with the confirmed effects. District A consists of 20 rural communities in Onan town, located in the center of the Shimane prefecture. Because there are 14 small-scale aging rural communities, there are four residents’ associations that make up an autonomous community association. The residents have been maintaining and managing farm roads and waterways since 2007 under the measures for conservation of farmlands, waterway, and rural environment. In FY2017, 71 hectares of farmlands have been conserved, 66 hectares of which are paddy fields, and 5 hectares of which are cultivated fields. In cooperation with elementary schools in the district, an agricultural learning project and intergenerational exchange opportunity are offered regarding use of the currently unused farmlands. A rural community in District K has been planting peach blossoms since 2004 and has been holding a peach festival since 2009. The number of visitors to the area has grown from 3000 to 4000 in that timeframe. However, because it has become difficult for the community to hold this event on its own, the broad-based organization under the direct payment program for multifunctionality has become the secretariat to support the activity. The new social management organization, which was launched in November 2010 as a component of the council of social welfare, supports farmland conservation and accounting for the subsidies and other activities. The social management organization also provides District B (Matsue city) Tottori

District C (Oda city) District A (Onan town)

Okayama

Hiroshima Yamaguchi Fig. 3.2 Location of study areas

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Table 3.3 Composition of subsidy of multifunctional payments Number of community associations Targeted farmland areas (ha) Items of the subsidy 1.Maintenance of farmlands 2.Improving regional resource conservation (cooperation) 3.Improving regional resource conservation (life-prolonged operation of agricultural facilities) Sum total Amount of subsidy per-community association Amount of subsidy per farmland

District A 4

District B 5

District C 6

71

52

30

Amount 2071

Percentage 33.8

Amount 1338

Percentage 35.0

Amount 913

Percentage 33.1

1236

20.2

775

20.3

548

19.9

2822

46.0

1712

44.8

1295

47.0

6129 1532

100.0

3825 765

100.0

2757 459

100.0

86

73

92

Note 1: This table was made by reference to the materials of Shimane prefecture Note 2: Subsidy of District A is for FY2017, District B is for FY2018, and District C is for FY2017 Unit: amount (thousand yen), percentage (%)

clerical support for the subsidies and clerical support for the senior residents’ group. The percentage of overlapping areas with the direct payment program for hilly and mountainous areas is 77%. One rural community outsourced the administration work for the direct payment program for hilly and mountainous areas to the regional organization. District B is located in a rural area of Matsue city. The residents there have been growing Japanese persimmons called Saijo Kaki, it is a variety unique to the Chugoku region and has been grown since the sixteenth century, and rice. Approximately 50 hectares of farmland, 29 hectares of which are paddy fields, and 24 hectares of which are cultivated fields are conserved under the direct payment program for multifunctionality. There are five rural communities in the district, and they cooperate with each other in mowing the grass around farmlands and farm roads, clearing the waterway, and paving the steep farm roads in the persimmon fields with concrete. The increase in the number of paved areas has increased the efficiency of farm work. The number of dangerous areas has been reduced, and the farmers can now work with a certain peace of mind. Non-farmer participants include the association for field maintenance and farmers’ associations for farm management established in December 2018. Nonprofit organizations (NPO) that were established about 24 years ago, including the senior residents’ group, children’s group, and community centers, also participate in the project. As an activity to promote

3 Resource Conservation and Community Vitalization Forms of Rural Communities in. . .

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multifunctionality, the residents hold urban-rural exchange events such as firefly festivals and agricultural festivals in cooperation with the local community centers and the NPO. The residents have been working with local elementary schools to conduct agricultural experience exchanges by using unused farmland. Moreover, the residents plan to incorporate the farming association in 2020. Although it is a semimountainous area with an elevation of 40 to 300 meters, the percentage of overlapping areas with the direct payment program for hilly and mountainous areas is 20%. Only three rural communities receive subsidies of direct payments to hilly and mountainous areas. District C is located in Oda city in the central part of the Shimane prefecture. They began using the direct payment program for multifunctionality in 2011. The organization is comprised of seven community associations and continues to manage the farmlands and agricultural facilities. There are 20 waterways for regional agriculture. Water has also been taken from mountain springs and nearby rivers. The 30 hectares of farmlands included in the direct payment program for multifunctionality are all paddy fields, 5 hectares of which are on a sloped ridge. There are many 20- to 30-hectare parcels of farmlands. In the past, farmers in their 40s and 50s have conserved their farmlands with part-time jobs. However, two-thirds of them are now over 65 years old. The average age is nearing 70 years old. The mowing of waterways is being carried out systematically by participating non-farm groups to remove fallen trees and trash from the river. Their farmlands had been damaged by birds and animals such as monkeys and wild boars. However, they have installed fences on farmland and rivers and have cut down bamboo thickets. They are also working on planting approximately 5 hectares of buckwheat as crop conversion. Regarding the training of future farmers, because there is no farming association, a limited liability company currently located in the district undertakes cultivation, seedling production, rice planting, and harvesting. However, the company does not have enough human resources. The residents believe that the company’s system needs to be strengthened. The percentage of overlapping areas participating in the direct payment program for hilly and mountainous areas is 100%. This area represents a typical conservation scenario in hilly and mountainous areas.

3.4

Discussion

Table 3.4 shows the conservation characteristics of the study areas. We extracted the activity characteristics through the analytical view described and compared the study areas. Regarding community vitalization (i.e. social capital accumulation), there are relationships with new organizations for the purpose of maintaining and improving the residents’ welfare in advanced cases. In some cases, these organizations are responsible for administrative supports for receiving direct payment subsidies. We also found in Districts A and B that the role of bridging social capital complements the role of bonding social capital. In these districts, one of the communities entrusts

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Table 3.4 Conservation and vitalization characteristics under the direct payment for multifunctionality in hilly and mountainous areas District A Regional organization supports landscape building activities in a specific rural community

District B Agricultural experience activity was conducted using idle farmlands in cooperation with the nearby elementary school

Agricultural experience activity was conducted using idle farmlands in cooperation with local elementary school

The farm roads have been improved to allow for the smooth supply of agricultural products such as persimmon

Social vitalization

Networks with the social welfare organization are formed in the district

Economic vitalization

Social welfare organizations have been able to support the preservation of farmland by developing social welfare programs, such as newspaper delivery and becoming designated managers of public facilities Many of the rural communities are aging and need to be worked on in an integrated manner by the welfare organization. They believe it is possible to work together on an elementary school district basis where residents can see each other

Networks with the social welfare organization are formed in the district A cafe has been opened in the welfare facility and has become a hub for interaction. They are trying to collect farmlands for motivated farmers by promoting incorporation

Resource conservation

Conservation range and relation with location condition

Since each community and farmer deals with urban vendors, the sales channels for persimmons are different. However, they are able to work together because community hub is working based on the welfare facility within range of the former elementary school districts

District C Cleaning up activity of local river is conducted as a part of the mowing of the waterway in cooperation with social action group for conservation of quality of water The small size of the farmland parcels and the mowing of the ridge of farmlands are a burden for the residents Networks are formed with social welfare group in the district The farm work is outsourced to a local agricultural corporation. However, due to the limited business of the corporations, the effects of cooperation have not been fully realized Until now, most of the farmers in the district have maintained their farming on a part-time basis. For this reason, there is not a high level of awareness of the incorporation of community-based farming

Note: This table was made using reference materials from the Shimane prefecture and field interviews in 2018 and 2019

the administration work of direct payment subsidies for hilly and mountainous areas. Bridging social capital functions within a range of elementary school districts. Regarding location factors, when considering broad-based resource conservation in hilly and mountainous areas, it is necessary to take into account the fact that the

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areas have multiple valleys and small parcels of farmlands. Another problem is that the number of sloped ridges of paddy fields that the residents have to manage increases when the residents attempt conserving their farmlands based on the broad range with multiple communities. As a result, operating costs increase. Also, the autonomous area should be formed where residents in each community can form attachments. Regarding direct payments, the findings suggest that the conservation project under the direct payment program for multifunctionality has led to the formation of a new and diverse community. However, the amount of the subsidy is not necessarily large when viewed on a per-community basis. The additional annual subsidy for the conservation activities in more than three villages of 50 hectares is 40,000 yen per year. Therefore, the benefits of expanding the conservation area are not great. The way in which grants are allocated becomes an impediment to the expansion of the region. Whether or not the cost of cooperation in conservation works will increase is also an important consideration.

3.5

Conclusion

This study examined the influence of characteristics of hilly and mountainous areas to resource conservation and community vitalization. Projects involving the direct payment program for multifunctionality with broad-based management are contributing to the formation of new social networks in hilly and mountainous areas, especially relating to new organizations that are responsible for maintaining and improving the residents’ welfare. The link between these new organizations and the direct payment programs was also identified. In addition, bridging social capital functions within an elementary school district and complements bonding social capital. Moreover, location factors, such as multiple-valley and small parcels, could increase the conservation cost within multiple communities. Local government officials report that there is little additional grant funding for broadening the management area with multiple communities relative to the cost of broadening the area. This limited distribution of the subsidies may weaken the promotion of broadbased conservation. Direct payment subsidies can be used effectively by conserving agricultural resources in conjunction with broad-based vitalization activities. However, the broad-based community vitalization activities should first be carried out in geographical areas where residents can form attachments, given the additional cost. Acknowledgement I would like to express my gratitude to the prefectural officials and the residents involved in the direct payment institute for multi-functionality in Shimane. This work was partially supported by JSPS KAKENHI, grant number JP18K05866.

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References Chen Y, Kiminami L (2015) Resident consciousness towards participation in common-agricultural resources management: focusing on collective action in Niigata prefecture. Stud Reg Sci 45 (4):471–491. [in Japanese] Fukushima S, Yoshikawa G, Saizen I, Kobayashi S (2012) Analysis on rerated factors of participation in regional resource Management in Rural Areas in northern Kyoto prefecture: a comparison of the two factors—bonding and bridging social capital. J Rural Plan Assoc 31 (1):84–93. [in Japanese] Furuzawa S, Kiminami L (2009) Study on collective Management of Rural Common-pool Resources and Social Capital. J Rural Plan Assoc 28(3):121–127. [in Japanese] Iiguni Y (2015) Development of Japanese-style direct payment and future perspectives. J Rural Iss 46(2):40–48. [in Japanese] Ito J, Feurer HN, Kitano S, Komiyama M (2018) A policy evaluation of the direct payment scheme for collective stewardship of common property resources in Japan. Ecol Econ 152:141–151 Kashiwagi M (ed) (2019) Local regeneration, and the emergence of innovation management systems and governance structures: new challenges for agriculture and farm villages. Waseda University Press Co., Ltd., Tokyo. [in Japanese] Matsushita K (2008) The effect of social capital for the conservation policy of the land, water, and environment. Japan J Rural Econ 80(4):185–196. [in Japanese] Meador JE (2019) Reaching rural: identifying implicit social networks in community development programs. J Rural Stud 68:285–295 Nakamura S, Hoshino S, Hashimoto S, Kuki Y (2012) The effects of personal experience on the evaluation of measures to conserve and improve land, water, and environment: survey of project in Shiga prefecture. J Rural Probl 48(2):240–246. [in Japanese] Okuyama H, Ozawa W (2015) Farmland, water, and environmental protection measures to improve rural social network formation. J Rural Soc Econ 33(1):134–143. [in Japanese] Yasunaga N (2020) Classification of collective actions for rural community vitalization in Chugoku mountainous region, Japan: applying multiple correspondence analysis. Asia-Pacific J Reg Sci 4 (2):553–592. https://doi.org/10.1007/s41685-020-00145-9

Chapter 4

Characteristics of New Farmers’ Entry Into Agriculture in Hilly and Mountainous Areas Nobuyoshi Yasunaga

Abstract This study examines the characteristics of new farmers’ entry into hilly and mountainous agriculture in the early stages of farm management, in terms of the relationship between new farmers and rural communities. Using data obtained from interviews of new farmers in Iinan town in the Shimane prefecture, we found the following: First, financial and non-financial support from formal and informal (regional community groups) sources eased the farmer’s entry into agriculture and the process of setting up a new life for themselves. Second, Japan Agricultural cooperatives (JA) play an important role by helping new farmers develop marketing channels at the initial stages. Additionally, off-the-farm jobs, such as part-time work at training destinations and the JA, sake brewing, and jobs at skiing facilities, helped supplement the farmers’ income. Third, new farmers cannot exploit better-quality farmlands (with higher soil quality) because community-based farm organizations already exist there and conserve the rural farmlands. These results indicate that it is necessary to change farmland use in regional agriculture based on a joint consultation among community-based farmers, new farmers, and official organizations. Keywords New entry farmer · Hilly and mountainous areas · Farm management after new entry · Supports · Relationship with residents

4.1

Introduction

In recent years, Japanese agriculture has encountered various problems such as the decrease in the number of farmers (partly because of the aging society), shortage of workers, and an increase in abandoned cultivated farmlands. These problems are particularly prominent in hilly and mountainous areas compared to farming areas N. Yasunaga (*) Institute of Agricultural and Life Sciences, Academic Assembly, Shimane University, Matsue, Shimane, Japan e-mail: [email protected] © Springer Nature Singapore Pte Ltd. 2020 N. Yasunaga, N. Inoue (eds.), Farm and Rural Community Management in Less Favored Areas, New Frontiers in Regional Science: Asian Perspectives 44, https://doi.org/10.1007/978-981-15-7352-1_4

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that are flat and more urban. Hilly and mountainous areas need an influx of population to even maintain the status quo society, and encouraging the entry of individuals without prior agricultural experience into regional agriculture is a pressing challenge for both the central and local governments. In order to increase the number of new entrants in the future, it is necessary to understand the current situation of new entrants, including their employment status, and to consider support measures for them. Previous studies on new farmers (those from non-agricultural backgrounds) have been conducted from several different perspectives. Fujie and Egawa (2003) examined the factors driving farm growth in the case of new farmers during a period of over 5 years, using data from the 2011 questionnaire of the Nationwide Consultation Center for New Entrants to Farming; the authors clarified that farmers generally face a funding constraint, but it does not mainly influence their farm growth. There is a possibility that new farmers face constraints in gaining access to farmlands and technological knowledge. Moreover, factors related to human capital, knowledge, and skills acquired before joining agriculture may also influence farm growth. Additionally, a positive motivation to undertake farming and management-oriented awareness also promote the growth of farms. Sawada (2003) analyzed the actual condition of agricultural training using data obtained from questionnaires administered to agricultural trainees and persons who underwent training sessions conducted by the National Chamber of Agriculture in 2011. The author indicates that it is difficult to match the level of awareness between agricultural trainees and the private sector that conducts the training. The study noted that agricultural training conducted by the official sector does reduce this disparity; however, it remains difficult for the trainee to acquire practical management knowledge or advanced technology. With respect to regional support systems, Hara (2002), Shima (2013), Hamamura (2015), and Muto (2016) analyzed the role of support systems for new entry farmers. Hara examined the available support networks using data obtained from new farmers who had already begun farming in K town, and concluded that these new farmers have two types of networks as social support. The first type is the “guardian system,” whereby a “guardian” helps new farmers as they adjust to both agriculture and rural life. The second type of support is a proactive voluntary network, through which the new farmers take initiative and contact specific persons to help address their needs. Furthermore, Shima (2013) studied the actual conditions of cooperation between support entities using the case of a town in Hokkaido; the author concluded that the cooperation between an official entity and a group consisting of new farmers and local farmers who already lived in the area, was proving to be useful in sharing resources. Hamamura (2015) carried out research on new entrants engaged in organic farming, and found that they were looking for ways to farm without having to rely on subsidies. Hamamura also pointed out that it would be necessary to expand employment opportunities by introducing new crops because it would be necessary to secure a skilled workforce to increase the cultivation area of organic products. Finally, Muto (2016) theoretically studied the conditions needed to strengthen altruism for lending farmlands to new farmers, and found that investment in interpersonal relations by farmers played an important role in receiving the support of

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farmers already living in that area. Yoshida et al. (2016), and Hashimoto and Mitsuhashi (2017) focused their research on new farmers’ entry into urban agricultural areas. Yoshida et al. (2016) studied the quality and quantity of leased farmlands for new farmers using data from questionnaire-based surveys and semi-structured interviews conducted in Tokyo and Yokohama. Their work argued that the public sector’s support positively affected the quality of leased farmland, and that existing farmers helped new agricultural entrants in increasing their farmland area. They also found that the Farmland Bank System does not contribute to farmland quality. Hashimoto and Mitsuhashi (2017) examined the characteristics of new farmers using data from interviews conducted in Utsunomiya city, Tochigi prefecture. They discovered that almost of the new farmers were U-turners who returned to their home city from outside the cities, and selected farming as their new business of choice. It is difficult for new farmers to secure both a farmland and housing in the same area, although have access condition to metropolitan areas for selling their farm products. There are some studies related to the hilly and mountainous areas, such as those carried out by Kanzaki and Horiuchi (2013), who analyzed the farm succession process of young successors in the Oku-noto region of Ishikawa prefecture. However, only a few studies have captured the initial actual conditions of new entry farmers, especially in hilly and mountainous areas, and in particular, the role of family farming, or how small family farms have undergone adjustment for dealing with rural poverty problems and sustainably using regional resources (Lowder et al. 2014). The United Nations announced the period of 2019–2028 as “the decade of family farming” through a proclamation by the General Assembly on December 20, 2017. This highlights the need to consider a management system to support family farming for future rural development. It has become increasingly important to consider the state of regional agriculture for maintaining small farming, as well as the need for regional management through interaction between new small farms and regional agriculture. Therefore, this chapter examines the initial characteristics of new entry farmers, and the relationship between new farmers and the regional economy in hilly and mountainous areas.

4.2 4.2.1

Materials and Methods The Definition of a “New Entry Farmer”

A “new entry farmer” is defined by the Ministry of Agriculture, Forestry and Fisheries as the person or partner who set up a new agricultural project that is yet to complete one year of operations (as on the date of the survey concerning new farmers conducted by the Ministry of Agriculture, Forestry and Fisheries), and who procured land and funds independently with or without agricultural experience. A new entry farmer is different from a new self-employed farmer, in that the latter definition also includes a person who has inherited a farm from his or her parent, or

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Unit: people 60,000

51,020 50,000

46,340

46,040

42,750

41,520

40,000

30,000 20,000 10,000

3,660

3,570

3,440

3,640

3,240

0 2014

2015

2016

New self-employed farmers

2017

2018

New entry farmers

Fig. 4.1 Trend in the number of new farmers in Japan: 2014–2018. Source: The Ministry of Agriculture, Forestry, and Fishery

who has started a new agricultural project separate from that of his or her parent's farm management, within one year prior to the survey date. Figure 4.1 shows the trend in the number of new farmers, based on data from the Ministry of Agriculture, Forestry and Fisheries. The number of new self-employed farmers from 2014 to 2016 does not include some areas in the Fukushima prefecture due to the influence of the Great East Japan Earthquake. In addition, we do not include new entrants who have a simultaneous job, for example, employment in an agricultural corporation. As an overall trend, many new farmers are those that inherited their parents’ agricultural practice. The number of new self-employed farmers was over 50,000 in 2015; however, this figure has been declining. From the perspective of the type of new farming, the number of new entrants is much lower than new self-employment farmers, reaching 3240 in 2018. This trend, however, has been flat.

4.2.2

Analytical Framework

We assume the following analytical framework in our consideration of the agricultural conditions in hilly and mountainous areas. A1: Support Conditions for Farming This is related to the support available in the use of farm resources such as farmlands, labor, and machines. We assume that community-level or farm-level cooperation exists. In addition, new farmers’ intention regarding farm management is important to sustain farming. We assume that new farmers have intention for their rural living.

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While they need to make a living on farm, they might want to create their new life in rural area. This life stage intention affects the current management. A2: Selecting Crops Regarding agricultural conditions in hilly and mountainous areas, the farmland is characterized by steep slopes and narrow parcels. In general, the proportion of paddy fields in the area is high. However, growing rice is not very profitable because the price of rice price tends to decrease over time. A3: Constructing Marketing Channels (Farm Products Distribution Conditions) Many farmers in hilly and mountainous areas usually face difficulty in marketing their produce due to the remoteness of their farmlands. With respect to location factors, many new farmers face difficulty in constructing marketing and distribution channels for their farm products. A4: Role of Off-Farm Labor Supply Hilly and mountainous areas are generally characterized as having low agricultural productivity and low income. It is difficult for new farmers to establish large-scale farms in such areas. Due to agricultural conditions mentioned earlier, many new farmers face difficulty in generating a steady household income and therefore, seek off-farm job opportunities.

4.2.3

Target Area

The target area for investigation is the mountainous area of Iinan town, located in the central southern part of Shimane prefecture in Japan and at the prefectural border with Hiroshima prefecture. This area is surrounded by the Kotobiki and Oyorogi mountains, which are approximately 1000 m high. The altitude of the flat land in this area is about 450 m. It is a typical mountainous and remote area in Japan, and is difficult to access without proper transportation. The population of this town is about 5000 and the proportion of both the farmer and working populations has been decreasing. The paddy field areas are much larger than the cultivated land areas in this town, and, for this reason, rice is the central crop here. However, in recent years, the production of melons, tomatoes, paprika, and other commercial crops has been on the rise. Such crops were also being produced in Tonbara town and Akagi town before the municipal merger in 2005 and it became a trend for Iinan town to promote these crops for horticultural promotion around 2008. Since fiscal year 2009, the production of these crops has been promoted by the regional product subcommittee of the Agriculture and Forestry Promotion Council of Iinan town, which consist of representatives from towns, prefectures, JA cooperatives, and producer groups. In 2013, the Agriculture and Forestry Promotion Council formulated the “Iinan Town Agriculture Promotion Plan (Target Year 2015),” which set the future direction for

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agriculture in Iinan town. A production target was set to promote the production of melons, tomatoes, spinach, kidney beans, paprika, grapes, Japanese yam, and peppers. Some of the support measures for new farming, from merger to present, have centered on industrial experience, such as “half-agriculture half-X business” (introduced by Shimane prefecture); agriculture and forestry re-settlement training system (introduced by Iinan town in 2010); and support and development projects for farm successors (introduced by Iinan town in 2013). Until the re-settlement training system was established, there was a lot of activity to promote community-based farming and there was little support for new farmers. Afterwards, however, support for new farmers began to attract main workers, and the support and development projects for farm successors supported the maintenance of farm machines and houses. In addition to this, a team was formed comprising different organizations (towns, prefectural extension departments, JA, farmers, etc.) to consider support measures for new farmers.

4.2.4

Research Method for the New Entry Farmers

The interview research was conducted at the end of 2017. In Iinan town, seven people were certified new farmers as of November 2017, with the following breakdown: five newcomers were I-turn new farmers, one was a U-turn new farmer, and one was a new farmer who left the farm due to injury. As of November 2017, two people were participating in agricultural training education, and were planning to start farming in 2018 and 2019. The survey targets were five new entrants who agreed to be surveyed among the certified new farmers. These were the people who had received industrial experience and re-settlement training. Questionnaires for interviews were distributed to each target entrant in advance, and face-to-face interviews were conducted with each target entrant in November 2017. Five aspects were surveyed: personal attributes, conditions before farming, conditions after farming, agricultural support, and human relations in the community.

4.3 4.3.1

Results and Discussion Conditions Before New Entry

Table 4.1 shows the attributes of new entry farmers. When viewed as a whole, it is inferred that generous regional support for new entrants encouraged migration from other areas. New entrant A travelled around the countryside in Shimane prefecture as a Shimane University student, and liked the personalities of the people he met there and the atmosphere of the area. He worked for a trading company but wanted to live

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Table 4.1 Attributes of new entry farmers Place of residence before I-turn

Occupation before I-turn

Relationship with agriculture Year of emigration to Iinan town and beginning agricultural training Year of starting independent farming and age at that time Family member composition (the number of people who live together, including the person themselves)

Entrant A Hiroshima city, Hiroshima prefecture Trading company/ sales Not from a farm August 2009

Entrant B Tsukuba city, Ibaraki prefecture Retail company/ sales Not from a farm August 2011

April 2013, at the age of 28 years 1 person (including 0 under 18 years old)

August 2013, at the age of 39 years 2 people (including 0 under 18 years old)

Entrant C Kobe city, Hyogo prefecture

Entrant D Neyagawa city, Osaka prefecture

Wholesale company/ sales Not from a farm April 2012

Postal company Not from a farm April 2013

April 2014, at the age of 38 years 4 people (including 2 under 18 years old)

April 2016, at the age of 41 years 2 people (including 0 under 18 years old)

Entrant E Yoshikawa city, Saitama prefecture Insurance company/ sales Not from a farm April 2014

April 2016, at the age of 40 years 2 people (including 0 under 18 years old)

Note: The data was collected on the interview research on November 2017

on his own instead of being hired. The training system in Iinan town, as of 2009, was better than other municipalities, and Iinan town was closer to his parents’ home. New entrant B’s wife desired a self-employed working lifestyle that encouraged his entry into agriculture. In addition, the period of farm training offered by Iinan town was longer than others, and this further encouraged his entry into agriculture. New entrant C was influenced by his wife's desire to do farming in the countryside, and Iinan town offered more support for new farmers than other towns did. New entrant D began thinking about life and values after being exposed to tragic news such as that of the Great East Japan Earthquake, and decided to leave his job. Later, he was participating in an event and volunteering in agriculture, when he was approached by the Settlement Foundation of Shimane prefecture and was introduced to Iinan town. New entrant E felt uncomfortable with his work involving crushing farmlands for construction while going around different areas for his sales business. Additionally, there are basic facilities in the town, such as hospitals, schools, etc., and the followup for new entrants by the Iinan town officers was generous and welcoming. Table 4.2 shows the funding before farming. When viewed as a whole, it is inferred that the initial investment for new entrants is reduced by obtaining facilities and machinery at low prices by buying them second-hand or renting them to local farmers. Self-funding varied among the individuals. New entrant A chose Yoshikawa Farm as a farming training destination because his family desired to work in a family farm, rather than in a farm corporation. At the farming stage, he could get tractors, transport vehicles, management machines, and mowers relatively

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Table 4.2 Initial cost and self-finance before farming Entrant A Initial investment cost Machines 500 Facilities 1500 Farmlands Borrowing Farmland maintenance – The amount of self-funding for farming Self-financed money pre1500 pared for farming Percentage of funds for 67% farming Percentage of funds for 33% living

Entrant B

Entrant C

Entrant D

Entrant E

2000 4800 Borrowing –

1200 – Borrowing –

– 250 Borrowing –

500 2500 Borrowing 800

2500

900

3000

5000

60%

0

50%

80%

40%

100%

50%

20%

Note 1: The table was made based on the interview research on November 2017 Note 2: The initial investment cost is not the actual burden, but the full amount including receiving the cost support Unit: thousand yen

cheaply. Farmlands were also borrowed from nearby farmers. However, it was necessary to buy a greenhouse, costing 500,000 yen. He had three houses for farming, with two-thirds of the cost being borne by Iinan town. In the first year of entry, the reserve was not enough and there was a gap between planning and practice. Since the grant had begun in April and the agricultural training had started from August of the previous year, the first year proved to be financially troublesome. New entrant B studied the growth of tomatoes and rice at Tsugaka Farm during his training, and his wife studied the growth of multiple crops at Yoshikawa Farm. He purchased a crusher, as a farm machine, with her personal money. Although they were sufficiently self-funded, the cost of the houses was 4.8 million yen, being so expensive because of snow-proofing. However, this burden of cost was reduced to one-third by using the local support comprehensive project aimed to promote new agriculture, forestry, and fisheries. Their planning and implementation at the farming stage were different to others. New entrant C learned useful ways at Yoshikawa Farm to acclimatize and adapt to life in the countryside and the rural community. He acquired four houses that a local farmer was not using, and the farmlands were rented. He purchased a machine to spray pesticides and a management machine in advance for farming. Since he did not have clear plan during the training stage, his life in the first year was relatively difficult. New entrant D had chosen Tsugaka Farm as the training destination so that he could concentrate in studying how to grow tomatoes after the training was over. The house, machines, and farmlands were mainly leased. He also got a few machines from residents in other areas. Although self-funding was enough, there was a gap between his planning and implementation. He was able to acquire the house without mediation of the government office because he exchanged his own house with his friend's house through personal networks. New entrant E taught most of the things himself, except for basic training

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aspects, because the content of the training depended on the training location and there was no training curriculum. He rented the farmlands, and the cost of the machine was reduced by half because he could use the tractor that already existed in his rental house. In addition, there was also an electric fence at the house. Although the living costs were low, his planning and implementation were completely different. Considering the farm scale, all of the new entrants except entrant C started farming with a clear short and middle farming plan and awareness of the optimum farm scale.

4.3.2

Farm Management After New Entry

Tables 4.3, 4.4, and 4.5 show the farming situation of the new entrants. For new entrant A, overall soil capabilities were low in the initial stages of farming. He stopped growing Yamatoimo (Japanese yam) in the 5th year of entry as it was proving to be unprofitable. He did, however, produce a lot of vegetables for direct sales production. He also shipped vegetables such as mini tomatoes and eggplants to Aeon, a retailer located in Matsue city, while vegetables for processing, such as white melon and radish, were shipped to business operators located in nearby Tonbara area. He assumed that it would be difficult to find a new sales channel because no one else was selling vegetables to a large market. He intended to continue to run his own business without any plans to expand it, although he wanted to innovate with high value-added farm products. Even though his farming had a surplus, he wanted to continue to work through winter. For new entrant B, the soil capability of the rented farmland was relatively high, but it drained poorly. Since he had started farming in August, the first year's income was from the production of radish. He then increased production to about 50 items at the first stage but had reduced the number of crops to about 20 by the time of the survey. His wife’s family helped him as part-time workers at the farm. The key products were black beans, wild sesame (called “egoma” in Japanese), and chrysanthemums, but it was the black beans that helped his farming stabilized in terms of income. He reduced tomato production due to the inconsistency in harvesting trends, and also reduced blueberries production because of low productivity. He also avoided distributing to nearby roadside stations due to differences in consumer needs. In the first year, 80% of sales were to the JA cooperatives and 20% were for consumers directly. However, the sales to JA cooperatives were not aligned with his organic farming methods, so he gradually switched to direct sales. At first, he began selling wholesale to a restaurant in Kisuki town, but soon increased customers located in Tokyo, Izumo city, Matsue city, and other locations. He had part time customers, such as JA cooperatives, and a nearby skiing facility that worked through winter. He also tried to make fruit leather using blueberries, roasted beans, dried potatoes, and dried vegetables, for the purpose of product diversification. For new entrant C, the soil capability of rental farmlands was low. He switched crops, such as soybean, lettuce,

New entrant B

New entrant A

–

–

Fifth year

First year Second year Third year Fourth year Fifth year

5a

Japanese yam

Fourth year

20a

20a

20a

20a

20a

Blueberry

Blueberry

Blueberry

Blueberry

Blueberry

10a

Japanese yam

Third year

20a

Japanese yam

Acreage 25a

Second year

First year

First main crop Japanese yam

Black bean

Black bean

Black bean

Black bean

Second main crop Vegetables for processing Vegetables for processing Vegetables for processing Vegetables for processing Vegetables for processing Tomato

10a

10a

10a

10a

4a

15a

10a

10a

10a

Acreage 8a

Table 4.3 Main crops and the acreage in each stage of farm management

Kikuimo (chrysanthemum) Egoma (wild sesame) Egoma (wild sesame)

Nasu (eggplant)

Japanese radish

Vegetables for direct sales

Vegetables for direct sales

Vegetables for direct sales

Vegetables for direct sales

Third main crop Vegetables for direct sales

7a

7a

4a

4a

20a

25a

20a

20a

20a

Acreage 15a

Spring: greens such as Noraouna (Norabo green) and Komatsuna (Japanese mustard spinach), Green bean (kidney bean), lettuce, potato, asparagus Summer: eggplant, tomato, green pepper, manganji pepper, mini-paprika, blueberry Autumn: eggplant, tomato, pumpkin, sweet potato, green pepper, manganji pepper, satoimo (taro) potato Winter: egoma (wild sesame), black bean, azuki bean, kikuimo, Japanese radish, greens

Crops harvested in each season Spring: spinach, Japanese radish, green bean (kidney bean), asparagus Summer: mini tomato, nasu (Eggplant), Green bean (kidney bean), shirouri (oriental pickling melon) Autumn: mini tomato, nasu (eggplant), green bean (kidney bean), Japanese radish Winter: not harvested

60 N. Yasunaga

First year Second year Third year Fourth year First year Second year First year Second year 1a –

Potato – Tomato (middle size)

12a

7.98a

7.98a

12a

8.6a

Paprika

Grape tomato (mini tomato) Grape tomato (mini tomato) Tomato (large size) Tomato (large size)

Japanese radish Japanese radish –

8.6a

1.5a

–

–

– –

–

1a

–

23a

23a

15a

8a

–

Japanese radish

Sweet potato

Sweet potato

Sweet potato

Sweet potato

3a

3a

8a

Paprika

Lettuce

8.6a

15a

Paprika

Soybean

8.6a

Paprika

Note: The table was made based on the interview research in November 2017

New entrant E

New entrant D

New entrant C

Spring: not harvested Summer: Tomato Autumn: Tomato Winter: not harvested

Spring: not harvested Summer: mini tomato, Potato Autumn: mini tomato, Japanese radish Winter: not harvested

Spring: not harvested Summer: paprika Autumn: Japanese radish, sweet potato Winter: not harvested

4 Characteristics of New Farmers’ Entry Into Agriculture in Hilly and Mountainous. . . 61

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Table 4.4 Sales percentage of farm products

1 2 3 4 5 6 7

Sales channels JA cooperatives Collection and shipping organization Wholesale market Retailers Food processing industry and food service industry Direct sales to consumers Others (direct selling facility such as Japanese road stations)

New entrant A (%) 0 0

New entrant B (%) 20 0

New entrant C (%) 85 0

New entrant D (%) 90 0

New entrant E (%) 90 0

0 0 33

0 0 0

0 0 0

0 0 0

0 0 10

0 67

80 0

0 15

0 10

0 0

Note: The table was made based on the interview research in November 2017

and radish, because of profitability issues. He also expanded sweet potato production after getting better results than expected, and selected paprika production as a main product because it was more profitable than tomato production. Working off-thefarm, he joined Akana sake brewing for a short period in the winter seasons, in the initial stage of farming. His production style was such that he produced large quantities at the farm and shipped it to large markets. The workforce was expected to increase in the future as the farmland expanded, bringing in the people from the neighborhood to work as well. He also wanted to expand farm sales channels in the future. He sometimes tried to make paprika jam in an effort to diversify his farm produce, with the processing of paprika scheduled to begin in fiscal year 2018. New entrant D chose mini tomatoes because they tend to be more profitable than regular tomatoes. Additionally, the box fee was cheaper than that of regular tomatoes. In the second year of farming, the house profitability improved after improvement was made to the drainage and peripheral equipment. Soil capabilities, however, did not matter much. There was also material support from the Tsugaka Farm, which was the training destination. He shipped his products to Izumio City in addition to selling to nearby roadside stations. The demand in Izumo City was high in August; therefore his farm products could be sold exclusively during that time. There was also no competition for tomatoes in the Izumo market, which further helped him. Farm products would be sold to restaurants in cities such as Tokyo. As an off-the-farm job, he worked for a short time at Akana sake brewing in the first year of farming, and worked part time on raising seedlings at Tsugaka Farm. Potato and radish planting were planned for expansion in the future. Additionally, he planned to increase the workforce because farming was difficult for a single person. For the new entrant E, the yield had not improved yet due to low soil capabilities. The rental farmland was originally a place with many stones near the river. He chose tomato production because keeping melons as the promotion crop had a higher risk, and tomatoes are easier for consumers to purchase and eat than paprika. Since tomatoes grown in the cool environment of Iinan-cho have a different harvest time from ordinary tomatoes

Food processing factory 10 days/month

From November to December

New entrant A Snow removal work on national roads 10–15 days/month

From November to March

New entrant B JA cooperatives Ski ground 5 days/ 8 days/month month October From January to February

Note: The table was made based on the interview research on November 2017

Working place Working days Work season

Table 4.5 Off-the-farm labor supply of new farmers New entrant C Akana sake brewing 15–16 days/ month From December to March

From December to February

New entrant D Akana sake brewing 20 days/month

Tsugaka Farm Variable (undecided) From December to March

New entrant E JA cooperatives Variable (undecided) From July to October

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grown in other regions, there is little competition for the tomatoes that are grown in Iinan town. The tomatoes have since been selling to the food manufacturing and restaurant industries in locations such as Iinan town, Matsue city, and the Tokyo metropolitan area. There was also a plan to increase the sales channels further. Although he tried to keep the distribution of the products to himself, there was no immediate plan to expand the scale of the farm, resorting to keeping a scale that was manageable by one person. Since the labor force consisted only of himself at that time, it was necessary to hire help for a short period, but there were not enough people to hire. As an off-the-farm job, he worked part-time putting vinyl on the house at Tsukaka Farm and selecting agricultural products at JA cooperatives. For farm diversification, he tried to process the tomato into a puree and a sauce for pizza. Processing was originally outsourced to a company in Oda city, but since he had knowledge and experience of processing, he began working on it himself.

4.3.3

Official Support for Farm Management of New Entrants

Table 4.6 shows support for new entrants. Most of the support received before farming was from Iinan town. New entrants D and E, who had just started farming, did not have much time to receive training after they started farming, and said they would like to receive training in the future. With regards to consulting, there were many consultations after the start of farming, such as with local farmers at the training destination and extension workers in the Shimane prefecture and JA, and it was understood that no problems were faced. More importantly, with regards to new entrant A, available farmlands in Akana areas were not preferred to Tonbara or Hanaguri areas because the farmlands would become an enclave. He had no options regarding housing. Entrant A received a vacant house and farmland through Iinan town, the second-hand machines from training destinations, and support for greenhouse installation from Iinan town as well. New entrant B found support for organic farming at that time. Although subsidies are useful, he felt that they do not go well together with organic produce. If subsidies ran out, he would continue farming while starting off-the-farm jobs. There were limited choices in the farming area where entrant B lived. He gained knowledge on farming himself in addition to studying at Agriculture and Forestry College of Shimane Prefecture. It turned out to be important that he received marketing training by a professional instructor. No technical training was needed for new entrant C, however, even though he received consultation from JA cooperatives regarding agricultural technology, as well as from the official office of Iinan town about other aspects. He also used financial support for his house from Iinan town. The support from the training destination was mainly advice. He chose a vacant house recommended by the official office of Iinan town. New entrant D studied at the training destination to improve his knowledge on farming technology.

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Table 4.6 Supports for the new entrants

Support received before switching to farming

Lessons learnt during the training

Consultation on cultivation techniques and management after farming

Trainings new entrants want to receive in the future

New entrant A Housing and farm land, introduction to cheap used machines, greenhouse installation Cultivation technology, machine operation, repair technology, processing, sales, business management, philosophy of agriculture, and adjusting to social life in the countryside Training destination, prefectural extension workers, and JA

Nothing in particular (nothing special)

New entrant B Housing, farmland, and machinery (e.g., crushers, chainsaws), greenhouse installation Cultivation techniques

New entrant D Funds (to lease house after farming)

New entrant E Housing, farmland, and funds

Cultivation technology, machine operation, repair technology, processing, sales, philosophy of agriculture, and how to live with local people in the countryside

Cultivation techniques

Cultivation technology, machine operation, and repair technology

Extension staff of prefectures and towns, and staff of Industrial Promotion Division of Iinan town

JA cooperatives and staff of Iinan town

Training destination (e.g., cultivation technique), wife’s parents (e.g., machine, sales channel)

Nothing in particular (nothing special)

Training for farm diversification and agricultural bookkeeping training

Training for marketing

Training destination, JA cooperatives, prefectures, seed and seedling companies (e.g., cultivation techniques, sales channels) Learning cultivation technology and machine operation

New entrant C Housing, farmland, and agricultural machinery

Note 1: The table was made based on the interview research on November 2017 Note 2: All new farmers received basic support such as Youth farming benefits, Agriculture and Forestry Settlement Training System of Iinan Town, Industrial experience project, and Agriculture Successor Training Support Project of Iinan Town

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He also received support for agricultural materials from Tsugaka Farm. He utilized the farm estate project for leasing houses. The ability to sell more farm products was needed, however, because the quality of the mini tomato was not reflected sufficiently in the price. He also showed a desire to learn marketing further. New entrant E was busy and could not receive training provided by government offices, saying that he would like to receive it in the future. He did not encounter any problem in getting consultation because there were senior farmers in Tsugaka Farm which he utilized as a training destination. Table 4.7 Relation with residents in the rural community

Are you actively interacting with local farmers? Support received from local farmers

Are you expected to be a leader in the rural community? Life issues

New entrant D positively interacting to some extent

New entrant E positively interacting to some extent

I have rented a farming house and a tractor from a famer

A local farmer gave me a farming machine no longer used

Local farmers provided agricultural materials and information

I think it is expected to some extent

I think it is very expected

Neither agree nor disagree

It is hard to participate in various events in the community and to balance the job and the role of the residents' association

Nothing in particular (nothing special)

Weeding work in the summer is challenging

New entrant A Not active

New entrant B positively interacting to some extent

New entrant C positively interacting to some extent

Nothing in particular (nothing special)

I rent farmlands from a local farmer to increase farm size. In addition, I rent a farming machine I think it is very expected

Neither agree nor disagree

Expenditures were sometimes high to build friendships in the community. This was particularly challenging when my income was unstable

Nothing in particular (nothing special)

Note: The table was made based on the interview research on November 2017

4 Characteristics of New Farmers’ Entry Into Agriculture in Hilly and Mountainous. . .

4.3.4

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Relationship with Residents in the Community

Table 4.7 shows the relationship with residents in the community. All the new farmers, except for new entrant A, received the help of local farmers in renting and providing farmland and machinery. New entrant A lived in the rural community where the training farmer lived. However, he did not actively interact with residents in the rural community. With regards to new entrant B, there was a movement to accept I-turners in the rural community where he currently lives. It was easy for him to adapt to the rural community despite joining abruptly, but the residents took care of him in various ways, which proved to be very helpful for him. The current farmland for new entrant C was loaned to him, and this was largely due to exchange with residents in the rural community. He acquired a house for farming and a tractor by interacting with the residents. New entrant D was familiar with the area, and orders for mini tomatoes were available from Botan no Sato (direct selling place for local producers). He had a somewhat positive interaction with residents in the rural community. Finally, new entrant E felt that he and the residents were compatible within the rural community, and he formally contributes to the related work of the residents’ association in the community.

4.3.5

Discussion

We now discuss the consistency between the interview survey results and our analytical framework and analyze how they compare and contrast. First, regarding factors before farming, generous regional supports for new entrants plays an important role in influencing migration from other areas. Regarding selecting crops and crop acreage, there were differences between the new entrants A and B, who have been farming for 5 years, and the new entrants C, D, and E who have been doing farming for four years or less. New entrants who have been working for five years cultivated crops throughout the period except for summer and autumn with acreage of more than 40a in the first year of farming. Moreover, the main crops in farms A and B were not the crops that were promoted by Iinan town as key crops such as tomatoes, melons, paprika, etc. for agriculture promotion, which is different from the other newcomers who have been working for less than four years. Overall, the cultivated area is being increased for the cultivation of new crops other than the initial main crops for new farmers. Additionally, as mentioned above, in 2013 the promotion of main crops such as melons, tomatoes, paprika, etc., began which were promoted based on the “Iinan Town Agricultural Promotion Plan (Target year 2015).” According to this policy, it is presumed that new entrants who have been farming for less than four years had become farm management types by growing a few crops, mainly using crops such as tomatoes and paprika. It is also presumed that new entrants in the fifth year of farming became original farm management type by growing multiple crops.

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Regarding the distribution of farm products, this trend was like the result of crops and cropping acreage. Looking at the sales percentage of newcomers C, D, and E (who have been working for four years or less), the sales percentage to JA cooperatives accounts for more than 80%. In contrast, the sales percentage to JA cooperatives of new entrants A and B accounts for 0–20%, with the percentage of direct sales to consumers accounting for more than 60%. There is room to further improve the sales channel by using personal experience and knowledge in the early stages of farming. Regarding management issues, however, new entrants A, D, and E raised issues related to sales channels. In particular, new entrant A felt that it was difficult to find a profitable way of business because it is difficult to expand the sales channels in remote areas. Entrant D shipped his farm products directly to Izumo city, but felt that the distance from Iinan town (60–70 km) was a logistical problem for business, although he followed a strategy to develop sales channels in the Kanto and Kansai areas. This seems to be a common issue regardless of the farming terms, suggesting that locations that are far from the market are a barrier when shipping and selling to urban markets. Regarding the relation between on-farm income and off-the-farm labor supply, new entrant A replied that “living would not be possible without off-the-farm income,” and other new entrants replied that “we are working outside of agriculture with anxious thought because it is difficult to make a living with only agricultural income.” None of the new entrants chose the survey item “Life is achieved solely by agricultural income,” indicating the difficulty of making a living only on agriculture within 5 years of farming. Regarding future management, all the entrants tried farm diversification; this also seems to be a common issue regardless of the farming terms.

4.4

Conclusion

This chapter examined the characteristics of new entry farmers within the context of regional agricultural characteristics in hilly and mountainous areas. We obtained results that conclude that farming preferences are different among new farmers. Through various characteristics, we confirmed that the financial and non-financial support by municipality and regional community support makes it easy to enter the regional agriculture and begin a new life. We also confirmed that the new farmers use the JA cooperative distribution route. JA plays an important role for growing farm management in the early stages and it still plays an important role for new farmers in helping them construct marketing channels. Additionally, off-thefarm jobs such as part-time work at training destinations and at JA, sake brewing, and jobs at skiing facilities supplemented their income. However, we also discovered the disadvantageous conditions of new farming in hilly and mountainous areas. The new farmer cannot use farmlands with better quality because community-based farming organizations already exist there and conserve the rural farmlands. These results indicate that it is necessary to change the farmland use system in the regional

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agriculture according to a council between community-based farming, new farmers, and official organizations. Problems in mountainous areas are closely related to farmland and location. In Iinan town, which was used as a target area for this study, most of the arable land is paddy fields, and in some cases, it is necessary to convert from paddy fields to cultivated fields. This will take some time until the soil becomes suitable for new entrants’ farming. Some newcomers rented farmlands from the local farmers, and a new entrant said that he was unwilling to change the soil properties suitable for his own agriculture because it was rented. There are very few options for newcomers to work in the farm, and if the farmland of the farmers is not suitable for agriculture, then its development is a costly proposal. Therefore, it is difficult to find farmlands that meet the conditions desired by new entrants. The second problem is related to sales channels at the location. Some new entrants said that it was not profitable due to the high cost of shipping and selling to urban areas that are far away from Iinan town, and that it was difficult to develop the sales channels in the first place. The shipping costs act as a barrier in developing sales channels. New entrants need to cooperate with each other as a combined sales unit to be able to support the costs of shipping. Acknowledgement The author thanks the new entrants in Iinan town and representatives of Iinan town. The author also thanks Mr. Okura who was student and supported our study in the laboratory. This work was partially supported by JSPS KAKENHI, grant number JP18K05866.

References Fujie T, Egawa A (2003) Growth factors of new entrants to agriculture from non-farming households. J Rural Econ 2003:35–40 Hamamura T (2015) A study of the growth process of new farmers into organic farming. Jpn J Farm Manage 53(3):29–34 Hara J (2002) Support network for agricultural newcomers from non-agricultural sectors. J Rural Stud 8(2):24–35 Hashimoto M, Mitsuhashi A (2017) Efforts towards farming issues of new farmers and heirs in the suburbs of the metropolitan area. J Rural Plan Assoc 36:264–270 Kanzaki J, Horiuchi M (2013) The actual conditions of agricultural succession in less-favored and depopulation aging areas: a case study of young farmer’s successors in Okunoto Region, Ishikawa Prefecture, Japan. J Rural Plan Assoc 32:311–316 Lowder S K, Skoet J, Singh S (2014) What do we really know about the number and distribution of farms and family farms worldwide? Background paper for The State of Food and Agriculture 2014, ESA Working Paper No. 14-02 Muto Y (2016) Supporting new farmers’ land borrowing in agricultural bearer deficient areas. Jpn J Farm Manage 54(2):49–54 Sawada M (2003) Status and problems of agricultural training to new farmers. Jpn J Farm Manage 41(1):96–99 Shima Y (2013) Analysis of cooperation system in new farmer support. Jpn J Farm Manage 51 (2):72–77 Yoshida S, Yagi H, Kiminami A (2016) Assessment of support systems for farmland lease of new entry for urban agriculture. Stud Reg Sci 46(4):413–426

Part II

Farm Management Through Redistribution of Agricultural and Local Resources

Chapter 5

Agriculture Based on the Recirculation of Local Resources: Focusing on Community-Based Farming Organizations Norikazu Inoue

Abstract The purpose of this chapter is to explain agriculture based on the recirculation of local resources by community-based farming organizations. The case of Shimane Prefecture, where community-based farming organizations (corporations/non-corporations) in disadvantaged areas have evolved since the 1970s with unique regional policies in place. The Shimane prefectural government has continued to support “community-contributing farming” in disadvantaged areas through its unique regional policies since the 1970s, advancing a type of agriculture based on the recirculation of local resources, focusing on community-based farming organizations. We investigate three cases about forage rice production for whole-crop-silage and cattle grazing in paddy fields. The three cases—a single community-based farming corporation, region-wide cooperation of community-based farming organizations, and an agricultural cooperative that includes community-based farming organizations and livestock farmers—have shown to help the region in several ways, including the recirculation of organic matter within the region; the effective use of farmland; management improvements such as labor savings and the utilization of human resources; an increase in the number of returners/newcomers, etc. Behind these successes, in addition to years of regional policy, is the strong support of agricultural cooperatives and local governments. In the rural communities of disadvantaged areas in Shimane Prefecture, the community-based farming organizations play an important role in promoting the “autonomous and independent lifestyle.” Agriculture based on the recirculation of local resources, other than being a sustainable means to create profits for the participating farmers, helps support living conditions in the village. These characteristics are shared among the three cases

N. Inoue (*) Shimane University, Matsue, Shimane, Japan Institute of Agricultural and Life Sciences, Academic Assembly, Shimane University, Matsue, Shimane, Japan e-mail: [email protected] © Springer Nature Singapore Pte Ltd. 2020 N. Yasunaga, N. Inoue (eds.), Farm and Rural Community Management in Less Favored Areas, New Frontiers in Regional Science: Asian Perspectives 44, https://doi.org/10.1007/978-981-15-7352-1_5

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despite their different types. It is also clear from the consensus-building process that communication between each farmer/resident based on “community logic” is the key to success, and that community-based farming organizations provide opportunities for communication. Keywords Recirculation of local resources · Community-based farming organization · Region-wide cooperation · Forage rice production · Cattle grazing

5.1

Introduction

Regardless of the country, agriculture based on the recirculation of local resources (nature, farmland, human, goods, money, information, and skills) is an essential initiative for promoting a sustainable economy. Paddy field agriculture in Asia, with its monsoon climate, has always found it difficult to cooperate with the livestock industry, but the recirculation of local resources has traditionally been continued in ways such as using various organic matters as fertilizers. However, with its modernization starting around the 1970s, agriculture has rapidly escalated in its reliance on chemical substances, and stock raising has become industrialized as agricultural production becomes larger and more specialized in Asian countries, including Japan and China, especially in regions with conditions beneficial to production. However, large-scale monoculture agriculture, while boasting high production efficiency, is easily exposed to the risks of environmental pollution and price fluctuations, and finds it hard to conform to sustainable development goals (SDGs). On the other hand, in Vietnam, which introduced its Doi Moi policy in 1986, a system based on the recirculation of organic matter produced by gardens, ponds, and livestock (those words, in Vietnamese, form the acronym VAC) was implemented as a sustainable agricultural production method for small-scale farmers with disadvantaged production conditions and is now widely used throughout the country (Cho and Yagi 2001; Cho 2005). Organic agriculture is also slowly increasing in prevalence throughout Asia. For example, crossbred “Aigamo” duck farming technology in which rice cultivation and crossbred duck raising are integrated in a single paddy field was developed by Japanese farmers since the 1990s (Furuno 2001; Fujie et al. 2010) and has been spreading to Asian countries. Agriculture based on the recirculation of local resources, which can be introduced in disadvantaged areas, is in line with the SDGs’ “ensure sustainable consumption and production patterns (Goal 12),” and its role and presence are rapidly growing. Agriculture based on the recirculation of local resources in disadvantaged areas is more effective because community-based management through cooperation between farmers, unlike with single farmers, has a synergistic effect. In conducting a study on communities as entities that implement agriculture based on the recirculation of local resources, the case study of community-based farming organizations (corporations/non-corporations) in Japan can be effective in understanding this idea of agriculture through the formation of local policies. Japanese

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community-based farming organizations have been promoted through regional policies at the prefectural level in the Shimane, Fukui, and Akita prefectures since the 1970s, and have attracted interest from the standpoint of both production and regional promotion. Since the 2000s, the Japanese government’s support measures for community-based farming organizations have promoted incorporation as a means of creating an efficient and stable farm management for concentrated farmland (Ono 2010). Emphasis has been placed on the promotion of production to achieve a “strong agriculture.” It can be said that this emphasizes the “business logic” of community-based farming organizations rather than their “community logic.” On the other hand, previous studies on community-based farming organizations have pointed out the following functions and roles since the 1980s: A village lays at the interface between two contradictory principles, community ones and economic ones, and its greatest characteristic is having various functions and roles. In practice, it is community-based farming organizations that bear these functions (Takenaka 1981). Community-based farming, seen from a business standpoint, is an informal organization where corporate logic cannot easily penetrate, and it is strongly related to basic social relationships such as mutual help, a sense of solidarity, local and blood relations, etc. (Ito 1992). Community-based farming is more appropriately considered an activity aimed at strengthening and revitalizing the region, rather than one with purely economic ends (Ando 2008).

All of these suggest the importance of “community logic” in community-based farming organizations. These points have been important even in recent years when the government’s support measures for community-based farming organizations focus on production, aimed at achieving a “strong agriculture,” and promote scale expansion and incorporation through farmland accumulation. In the case of small villages in disadvantaged regions, the importance of these points will increase in the future as rural villagers promote “autonomous and independent lifestyles (Yamashita 2008).” Agriculture based on the recirculation of local resources might be effective as a way to sustain the common interests of participating farmers based on “community logic.” There are two types of agriculture based on the recirculation of local resources carried out by community-based farming organizations: forage rice production for whole-crop-silage and cattle grazing in paddy fields in collaboration with local livestock farmers. These activities are also carried out by single community-based farming organizations, but to further increase the recirculation of local resources and increase the common interests of participating farmers, new cooperatives are being formed between multiple community-based farming organizations and livestock farmers. In this chapter we explain the case of Shimane Prefecture, where communitybased farming organizations in disadvantaged areas have evolved since the 1970s with unique regional policies. The actual situation of the recirculation of local resources by community-based farming organizations was investigated based on forage rice production and cattle grazing in paddy fields.

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Definition of “Community-Based Farming Organization”

The Ministry of Agriculture, Forestry and Fisheries defines a community-based farming organization as “an organization that works together on all or part of the agricultural production process in a village.” The Shimane prefectural government defines it as “a farming organization with efficient and planned land use, the shared use of machinery and facilities, the securing of machine operators, the division of agricultural work according to the abilities and capacity of individuals such as women and the elderly, which aims at improving income and production efficiency for the whole village through the introducing highly profitable crops and rational agricultural policies.” In contrast to the Ministry of Agriculture, Forestry and Fisheries, which focuses on the rationalization of agricultural production, the Shimane prefectural government also focuses on realizing agriculture based on the recirculation of local resources in villages and the utilization of human resources. The Shimane prefectural government classifies community-based farming organizations as one of the following types: (1) single farmers sharing machinery and facilities, (2) contractor types where single farmers outsource machinery work, and (3) village-wide cooperative farming organizations (Fig. 5.1). Based on the survey results in Shimane Prefecture, the activities of community-based farming organizations can be organized as shown in Table 5.1. The activities (I), (II), and (III) are the economic activities that make up the business, where the activity (I) is based solely Organization Machine lending

Fee

Farmers

Organization Core work

Revenue

Fee

Farmers

Organization Work

Revenue Shared use type: Systematic use of shared machines and facilities by the community or organization members.

Payment

Revenue

Farmers

Contract type: Core members are entrusted with core work using machinery and facilities, and contract farmers oversee complementary work.

Collaborative management type: Each member engages in work according to their ability to perform efficient production, and profits are distributed to each member according to the share of farmland and work hours they provided based on a pool calculation.

Fig. 5.1 Community-based farming organization types (Shimane Prefecture). Source: The Shimane prefectural government, definition and types of community-based farming organization (retrieved April 27, 2020, from https://www.pref.shimane.lg.jp/industry/norin/nougyo/ninaite/eino/ teigi.html)

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Table 5.1 Diverse activities by community-based farming corporations

No. I II

III

IV

Case Agricultural businesses that the profitability is the top priority Cattle grazing and buckwheat cultivation (elimination of idle farmland) Outsourcing water management and ridge management to elderly farmers (creating work in the village) Contracted mechanical work (supporting the elderly to continue farming) Inheritance of agricultural techniques (motivation for the elderly and learning for the young) Manufacture by women (creating work in villages, utilizing local resources) Outing support service for elderly farmers/residents (improving quality of life) Returners/newcomers acceptance (survival of the village) Holding of rural community events and exchange events between urban and rural areas (creating liveliness)

Economic activity ○

Economic activity that constitutes agricultural business ○

Communitycontribution activity

○

○

○

○

○

○

Source: Developed by the author with reference to Inoue et al. (2016)

on “business logic,” and the activities (II) and (III) are based on “community logic” in addition to “business logic.” The activity (II) is agriculture based on the recirculation of local resources in the village, such as forage rice production, cattle grazing in paddy fields, organic farming, and farming involving the elderly and women.

5.3

Shimane Prefecture’s Regional Policy for the Recirculation of Local Resources

Next, we summarize the regional policies of Shimane Prefecture that promote agriculture based on the recirculation of local resources. The Shimane prefectural government has positioned community-based farming organizations as key players in agriculture in disadvantaged, underpopulated, and aging areas, financially supporting their establishment and operation with the “Shin-Shimane Hoshiki (New Shimane methods)” first implemented in 1975. Since then, it has continued to take the lead in supporting local farmers.

78 Fig. 5.2 Community-based farming evaluation system (Shimane Prefecture). Source: The Shimane prefectural government, community-based farming in Shimane Prefecture (retrieved April 27, 2020, from https://www.pref. shimane.lg.jp/industry/ norin/nougyo/ninaite/eino/ ayumi.html)

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Business development type

Business development degree

Ideal type

Community contribution type Regional contribution degree

Converted to 1–5 points for each item and summed

10 items including sales for 0.1 ha of managed farmland

Farmland maintenance function Economic maintenance function Living sustenance function Human resource maintenance function (Total 12 items)

Many community-based farming organizations established throughout the country since the late 1980s were largely born out of labor shortages (Takahashi 2003), and the Shin-Shimane Hoshiki, enacted in 1975, was a precursor to them. When Mr. Seiji Tsunematsu took office in 1975, the governor of Shimane Prefecture, in his first speech on administrative policy, stated, “We need independent efforts to change agriculture, which has so far been labeled as ‘government-reliant,’ into a self-reliant one,” and in the following 14 years in which he held his position, he kept implemented community-based policies related to local agricultural communities (Taniguchi 2009). This philosophy has been inherited by Shimane Prefecture’s regional policy. The Shimane prefectural government, which has continued to provide support to community-based farming organizations since the Shin-Shimane Hoshiki, when the national government released the “cross-item management stabilization measures” (later known as the “income stabilization measures”) in 2007, organized the “nextgeneration community-based farming research group” consisting of experts from both inside and outside the prefecture with the aim of finding new measures related to the upbringing and support of community-based farming organizations that could contribute to the development of farming and rural villages. This research group gathered information by conducting surveys and inspections of community-based farming organizations in the prefecture, and discussed issues and countermeasures related to community-based farming organizations from various angles. As a result, the Shimane prefectural government has further clarified its policy to support community-based farming organizations on the prefectural level by emphasizing the business development standpoint as well as the contributions to the region that community-based farming organizations have made. More specifically, communitybased farming organizations are evaluated based on the evaluation axis of “regional contribution” and “business development” (Fig. 5.2), extending support to

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“community-contributing farming” that did not qualify for the national government’s support. For example, in FY2011–2013, to support the development of community-contributing farming, in addition to organizing and promoting community-contribution activities, the Shimane prefectural government is providing support projects that focus on human resource development and the development of returners/newcomers (common name in Japan is UI-turners) acceptance system. This is being independently developed and is supported by positioning community-based farming organizations as being on the receiving end for new farmers (Imai 2013). Inoue and Kuraoka (2014) measured the correlation coefficient between the “business development degree” and the “regional contribution degree” using the results of interviews conducted by Shimane Prefecture on 62 communitybased farming organizations. However, no significant correlation was found, with a 0.159 coefficient, in plain areas, but a significant positive correlation with a coefficient of 0.470 at 1% was found for hilly and mountainous areas. In hilly and mountainous areas there is a positive correlation between the business development degree and the regional contribution degree. Agriculture based on the recirculation of local resources achieves both business goals and contributions to the region. Among the main types of agriculture based on the recirculation of local resources carried out by community-based farming organizations in Shimane Prefecture are forage rice production, environmentally friendly rice cultivation, and cattle grazing in paddy fields. For the purpose of improving forage self-sufficiency and environmentally friendly farming, the Japanese government continues to provide subsidies to these productions. Community-based farming organizations in disadvantaged areas have difficulty in securing human resources and expanding their scale, and their rural leaders are aging. A possible countermeasure to these issues of community-based farming organizations is a region-wide cooperation in which multiple neighboring community-based farming organizations cooperate and perform new activities. The Shimane prefectural government supports region-wide cooperation, and provides support such as corporate registration and the maintenance of machinery and facilities. Region-wide cooperation of community-based farming organizations can achieve cost reduction through joint purchases that could not be done by a single community-based farming organization, as well as the production and sales-channel expansion of branded products through shared cultivation methods. The exclusive production of forage rice based on the recirculation of local resources can be difficult for small-scale community-based farming corporations in areas where harvesting machines are expensive and there are no contractor organizations nearby. Therefore, in disadvantaged areas, new corporations have been established through region-wide cooperation to work on forage rice production. For cattle grazing in paddy fields, in addition to national support, local support is also provided at the prefectural level. From 1955, the Shimane prefectural government established public pastures through a grassland development project, thus starting cattle grazing in the areas. From the 1980s, cattle grazing within the villages, starting with Oda city, was promoted also due to soaring calf prices. Starting in 1996, the spread of electric fences was promoted. In the villages of Oda city, year-round grazing using agricultural and forest land began in 2000, with the support of National

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Research Institute (Senda 2010). The Shimane prefectural government has stated that the purpose of cattle grazing in the villages is to simultaneously achieve farmland/forestland conservation and livestock management. There are two types of cattle grazing in paddy fields: one that newly establishes a cattle breeding sector in the area, and one that collaborates with cattle breeding farms. In each case, community-based farming organizations play a major role in securing grazing places and managing grazing. Since 2017, the Shimane prefectural government has been developing a grazing practice school, a community support system, and trial grazing (the lending of grazing cattle and materials, technical guidance), etc., thereby supporting paddy grazing by community-based farming organizations. In this way, the Shimane prefectural government has positioned communitybased farming organizations as the main body that protects agriculture and livelihood in disadvantaged areas, and continues to improve the conditions of agriculture based on the recirculation of local resources from tangible and intangible perspectives. Community-based farming organizations are also conducting a variety of activities, contributing to securing and retaining new human resources.

5.4

Community-Based Farming Organization Activity in Shimane Prefecture

In Japan, the number of community-based farming organizations has been increasing, with the support of the government, since the 2000s. The number of communitybased farming organizations in Shimane Prefecture (Fig. 5.3) has increased by 142 over the last 14 years due to both independent practices and regional policies in the villages. Incorporation has also increased to the point that, as of March 2018, 38% of the organizations were corporations. On the other hand, the number of farm families and the area of managed farmland in 2018 were smaller than those in comparison to other prefectures in the Chugoku region and in Japan (Figs. 5.4 and 5.5). This is related to the fact that community-based farming organizations have been established mainly in disadvantaged areas since the Shin-Shimane Hoshiki. In mountainous areas, the scale of the villages is small and farmland is dispersed, so it is difficult to achieve economies of scale by expanding farmland. According to a survey from the Shimane prefectural government, in 2011 there were three types of community-based farming organizations in equal amounts: (1) single farmers sharing machinery and facilities, (2) contracting situations in which single farmers outsource machinery work, and (3) village-wide cooperative farming organizations. However, due to the aging of farmers, especially in disadvantaged areas, and to the increasing number of organizations being incorporated, the village-wide cooperative farming organizations (Fig. 5.1) are increasing their share. In the disadvantaged areas of Shimane Prefecture, village-wide cooperative farming organizations are responsible for agriculture based on the recirculation of local resources, which is the activity (II) in Table 5.1.

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81

700

651 Organizations (total)

600

509 500

400

300

247

200

Corporations 100

64 0 2005

'06

'07

'08

'09

'10

'11

'12

'13

'14

'15

'16

'17

'18

Year（in March）

Fig. 5.3 Change in the number of community-based farming organizations (Shimane Prefecture). Source: The Shimane prefectural government, history of the community-based farming in Shimane Prefecture (retrieved April 27, 2020, from https://www.pref.shimane.lg.jp/industry/norin/nougyo/ ninaite/eino/)

% 40

35 30 25 20 15

10 5 9 or less Japan

10-19

20-29

The Chugoku Region (five prefectures)

30-49

50 or more

Shimane Prefecture

Fig. 5.4 Percentage by number of farm families per community-based farming organization (2018). Source: Ministry of Agriculture, Forestry and Fisheries, annual report of communitybased farming, 2018

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% 45 40 35 30 25

20 15 10 5 less than 5 ha Japan

5-10 ha

10-20 ha

20-30 ha

The Chugoku Region (five prefectures)

30-50 ha

50 ha or more

Shimane Prefecture

Fig. 5.5 Percentage by area of managed farmland per community-based farming organization (2018). Source: See Fig. 5.4

In Shimane Prefecture, which has many disadvantaged areas, not only the number of community-based farming organizations but also the proportion of corporations has been increasing. On the other hand, many community-based farming corporations in disadvantaged areas have difficulty in achieving farmland-expansion-driven economies of scale due to a small farmland lots, a limited number of people, and reduced crops during snowy winters, requiring a high level of innovation.

5.5

Community-Based Farming Organizations Using the Recirculation of Local Resources

In this section, we summarize three cases of agriculture based on the recirculation of local resources by community-based farming organizations in disadvantaged areas. First, we summarize how a small settlement in the mountainous area of Onan-cho has established a community-based farming corporation—specifically, how they have achieved forage rice production and environmentally friendly rice cultivation since their establishment. Secondly, we summarize the process by which the eight community-based farming organizations in the mountainous area of Izumo-shi have achieved forage rice production, focusing on sharing and cooperation among the community-based farming organizations. Third, we summarize the process by which

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community-based farming organizations, beef cattle breeding farms, and agricultural cooperatives near the mountains in Izumo-shi have realized cattle grazing in paddy fields.

5.5.1

Forage Rice Production and Environmentally Friendly Rice Cultivation by Establishing Small-Scale Community-Based Farming Corporation

In the northeastern part of Onan-cho, in a small settlement with about 20 farmhouses at an altitude of 300 m and an area of arable land of about 22 ha, rice production by a small number of full-time farmers and a large number of part-time farmers is carried out as birthrates decline and average age increases. With the establishment of a community-based farming corporation in a neighboring settlement in 2003, an enterprise that looked 20 years ahead was started by the residents. The rural leaders concluded that it is necessary to cooperate between settlements to maintain the ancestral farmland, but they were separated from neighboring settlements by mountains. They, therefore, started preparations for the establishment of a communitybased farming organization comprised of their rural community alone. According to advice from town government officials, they decided to establish a corporation from the beginning because there was no significant difference in the procedure and it would make it easier to practice agriculture while contributing to the rural community through the recirculation of local resources. In general, the collaborative management type (Fig. 5.1), the most widespread corporation type, allows for planned and organized farming and makes it easier to manage farmland from an agricultural perspective. However, individual farmers have less discretion compared to farms where they work independently. Therefore, the establishment of a new communitybased farming corporation requires timely and careful consensus-building. In 2005, the residents held meetings separate with gender and age under the coordination of a town government official, and they discussed the necessity of a community-based farming corporation for half a year. Initially, most farmers disagreed due to reduced agricultural discretion, but, after discussions, six farmers turned in favor. In 2006, the rural leaders held a study group on community-based farming corporation for all residents of the settlement, and discussed the establishment of a corporation with the participation of all 21 farmers. Twelve farmers agreed to its establishment, but nine wished to continue farming at their own discretion. Rural leaders abandoned total participation, and a community-based farming corporation was established in 2007, with 12 farmers to begin with. At the time of establishment, farmers who did not participate in the corporation were able to join later, when it became difficult to farm independently. Thus, there are few cases in which all the farmers in the settlement joined the community-based farming organization from the beginning, and often they can join later, after its establishment. In this corporation, five farmers, because of their increasing age, have joined the community-based farming corporation in the

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6 years after its establishment, and the managed cultivated land area of the corporation became 12 ha. The corporation began to work on environmentally friendly rice cultivation in 2008, and on production of forage rice and buckwheat in 2009. Forage rice harvesting and sales to livestock farmers are outsourced to a forage harvest contractor organization. In addition, after winning a rice contest outside the prefecture, in 2011 the corporation took the opportunity to start doing business directly with rice wholesalers, and is currently working on rice cultivation in organic farming. The main four achievements of local resource recirculation-based agriculture performed by this community-based farming corporation are as follows: (1) The realization of forage rice production and environmentally friendly rice cultivation has increased local resource (animal feed) recirculation while reducing the use of chemically synthesized substances. (2) The 1.2 ha abandoned farmland in the settlement before incorporation was used for cultivation of extensive crops (buckwheat, forage rice) and was turned back into cultivable land. (3) By selling buckwheat noodles and mochi rice-cakes through direct-sale retailers and at special events, the corporation creates income for women and the elderly. (4) The corporation has been recruiting permanent residents of the settlement from outside Onan-cho, and has been accepting them since 2013 through training in vegetable cultivation and mediation of farmland, contributing to maintaining the population of the settlement.

5.5.2

Forage Rice Production Through Region-Wide Cooperative Corporation of Community-Based Farming Organizations

Next, we summarize the process by which community-based farming organizations in the mountainous area of Izumo-shi have established region-wide cooperation and achieved forage rice production, focusing on the sharing and cooperation among the community-based farming organizations. Community-based farming organizations in disadvantaged areas tend to have little farm acreage and have difficulty in securing human resources and expanding their business scale, and their rural leaders are aging. As a countermeasure to these issues, which are endemic in individual community-based farming organizations, several neighboring community-based farming organizations get together to establish a region-wide cooperative organization, and many of these are present in the disadvantaged areas of the prefecture. Region-wide cooperation of community-based farming organizations can achieve cost reductions through the joint purchase and use of costly machinery that could not be done by a single community-based farming organization, as well as the production and sales-channel expansion of branded products through shared cultivation methods. A single small-scale community-based farming corporation with no forage harvest contractor organizations nearby may have difficulty producing forage rice

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based on the recirculation of local resources. Therefore, in disadvantaged areas, new cooperative organizations have been established through region-wide cooperation to work on forage rice production. A region-wide cooperative organization requires close cooperation with local governments, agricultural cooperatives, and residents, in addition to the constituent farming organizations. The area covered by the regionwide cooperative corporation in the mountainous area of Izumo-shi 110 square kilometers, of which forests occupy 80%. The area consists of 13 community blocks, and, in 2013, eight community-based farming organizations (of which three were corporations) established a region-wide cooperative corporation. As of 2016, they employed six full-time and two part-time employees, and consisted of a farming department, a processing department, a direct sales department, and a general affairs department. The farming department involved eight community-based farming organizations. All community-based farming organizations mainly focused on rice cultivation, but, in addition to agriculture, each had a distinctive business, such as a corporation engaged in welfare services for the elderly, a park management business, and a corporation engaged in protected horticulture. The business activities of the farming department of the region-wide cooperative corporation included the commissioning of 18 ha for forage rice harvesting from the community-based farming organizations and 7.5 ha for the harvesting of buckwheat and rapeseed, as well as 1.3 ha for forage rice and buckwheat produced independently by the regionwide cooperative corporation itself (2016). The commission for work accounts for more than 90% of the profits in the farming department. The processing department and the direct production department took over the business of the NPOs that had been operating in the area before the establishment of the region-wide cooperative corporation, and manufactured miso, dried noodles, and processed products. In the direct sales department, the region-wide cooperative corporation operates the agricultural direct-sale shop inherited from the NPO and ships agricultural products and processed goods to supermarkets within Izumo City. The direct-sale shop also sells agricultural products cultivated by the eight community-based farming organizations, and processed products produced by the processing department. The general affairs department oversees administrative work such as accounting and document creation for the organization, planning events, and conducting sales promotion activities through the Internet. The region-wide cooperative corporation was established to prevent the abandonment of cultivation. Prior to 2012, individual community-based farming organizations protected the farmland in each settlement, but it was expected that it would be difficult for them to respond to the rapidly increasing demand for cultivation of farmland as depopulation and aging progressed. Discussions were held, mainly by the leaders of the community-based farming corporations, to maintain the farmland in each settlement. As a result, it was concluded that the establishment of a new organization that operated in cooperation with the local community-based farming organizations could be able to protect the local farmland. Therefore, they called on all the community-based farming organizations in the region and eight of them agreed with them to establish, in 2012, a free-participation region-wide cooperative organization, and to start operations. In addition to jointly purchasing expensive

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dedicated machinery using national and prefectural support, the cooperation has also managed to dispatch workers to the community-based farming organizations that lacked human resources. From the first year of its establishment, the organization has explored the possibility of business diversification beyond forage rice production and into the manufacture and sale of buckwheat and processed agricultural products. Therefore, in 2013, the corporation merged with the NPO that had been operating agricultural processing and direct-sale offices in the region to become a stock company, creating an integrated production, processing, and sales system within the region. The directors of the region-wide cooperative corporation are selected from the directors of each community-based farming organization. The president manages the processing, sales, welfare, and other business departments. The director who manages the farming department is also the director of one of the community-based farming corporations that manages protected horticulture. The general affairs department has one employee, and also conducts event planning and sales promotion activities for agricultural and processed products. The farming department is responsible for contracting the harvesting of forage rice, buckwheat, and rapeseed, and independently produces forage rice and buckwheat. The processing department and the direct production department took over the activities of the NPO’s agricultural processing plant and direct sales office. The objectives of both departments are to interact with urban areas by promoting direct sales in disadvantaged areas; promote agricultural production; create motivation, health, and friendship for farmers; and create new brand vegetables. The main products in the processing department are miso, processed bamboo shoots, pickles, and dried noodles, which are shipped to supermarkets, school lunchrooms, and direct sales outlets in Izumo-shi. The business of the direct sales department is to sell processed goods and vegetables at directly managed stores in the region, and to ship to supermarkets in Izumo-shi. The annual schedule of the farming department is decided by the director in November of the previous year, based on responses collected from each communitybased farming organization. Each farming plan is submitted to the agricultural cooperative, and, based on this information, orders for seeds, seedlings, and materials for the next fiscal year are made. Also, the agricultural cooperative collects the desired quantity of forage rice from livestock farmers. Grants for forage rice production (80,000 yen per 0.1 ha) are distributed equally between the regional cooperative corporation and each community-based farming organization. In the steering committee meeting before the general meeting of shareholders, the community-based farming organizations share information and discuss between themselves in preparation for it. During the steering committee meeting in October, they evaluate the status of future activities and exchange opinions with officers and directors. Forage rice is cultivated by the community-based farming organizations, and the harvest plan is sent to them 1 week before harvesting. Two groups are responsible for harvesting forage rice, and there are three operators per group. The operators are composed of staff from the community-based farming corporations. Buckwheat and rapeseed are also cultivated by the community-based farming organization, and they

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are then harvested by the operators of the region-wide cooperative corporation. For the first 3 years since establishment, the people in charge of community-based farming organizations gathered to communicate information on the planning and implementation of farming by the region-wide organization, but, after that, all communication except for harvest meetings has been via telephone calls. Cooperation with related organizations is performed, for example, by requesting support from the “depopulated areas support center” of Izumo City office when planning the introduction of new crops or renewal of machinery, aiming to share information. The region-wide cooperative corporation receives technical guidance and advice, including how to determine the best time for harvest from the agricultural cooperative and the prefectural extension center. In addition, the region-wide cooperative corporation has established a network group with local dairy farmers, agricultural processing groups, vegetable farmers, etc., and carries out informationsharing and exchange activities among them. A local work experience tour by the corporation has been conducted since 2013 with the aim of attracting new residents from cities. The main four achievements of local resource recirculation-based agriculture performed by the region-wide cooperative corporation are as follows: (1) it has achieved recirculation of local resources (animal feed) and the production of forage rice in disadvantaged areas; (2) it has achieved cooperation with agricultural cooperatives and local governments through the production of forage rice; (3) it took over the agricultural processing and sales business of the NPO, achieving cooperation between the primary, secondary, and tertiary industries; and (4) it has established a local network group, and achieved information exchange and tours to experience local work to attract new residents from cities.

5.5.3

Achieving Cattle Grazing in Cooperation with Community-Based Farming Organizations, Beef Cattle Breeding Farmers, and Agricultural Cooperatives

In Hikawa-cho (the eastern part of Izumo-shi), wheat, soybeans, and vegetables are cultivated by community-based farming organizations in one of the prefecture’s plain regions, and small-scale beef cattle breeding farmers continue organizational farming together with an agricultural cooperative. In this region, an agricultural promotion system was established in which the agricultural cooperatives and farmers were brought together. In 2004, the “unified regional farming system” was adopted, promoting the use of farmland by large-scale farmers and community-based farming organizations and reaching farmland integration ratio of 70% by 2015. However, several areas in this region had difficulty selecting crops due to poor farmland drainage. In addition, beef cattle breeding farmers in this region had maintained

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Fig. 5.6 Cattle grazing in paddy fields (Hikawa-cho, Izumo-shi)

the number of farms and cattle because of the Wagyu beef cattle improvement association in cooperation with the agricultural cooperative, but because of the aging population, more and more small-scale breeders had trouble remaining in operation, and some had to abandon breeding. In the 1990s, agricultural cooperative officials, who were examining these issues, visited paddy fields in 1998, and focused on cattle grazing in paddy fields, taking advantage of the fact that this could help using paddy fields in hilly and mountainous areas and saving labor for beef cattle breeding farmers. With their help, test grazing began in 1999 with the cooperation of the agricultural cooperative and farmers. Since 2000, the grazing technology has been improved by visiting more advanced locations and exchanging know-how with them, and the grazing land has been gradually expanded. After 4 years of successful test grazing, a grazing land use association of beef cattle breeding farmers (34 at that time) signed a contract with a community-based farming organization in 2003, planted pasture in paddy fields, and began cattle grazing (Fig. 5.6). Agricultural cooperatives encouraged the national government to subsidize cattle grazing in 2004, and the grazing area of the community-based farming organization expanded to 8.7 ha. Since 2006, other community-based farming organizations have been working on paddy grazing in the areas. With the labor saving achieved by grazing, the number of cattle bred in the region has been stable, and the number of mother cows per beef cattle breeding farm has doubled in the 5 years since 2006. As of 2018, the number of paddy field farms engaged in

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grazing is nine (most of the grazing area is occupied by three community-based farming corporations), the number of beef cattle breeding farmers is 11, and the grazing area is 30 ha. The coordination between paddy field farmers and beef cattle breeding farmers is handled by two agricultural cooperative staff. Paddy field farmers are responsible for mowing weed and cultivating pasture grass. Beef cattle breeding farmers are responsible for installing and managing the electric fence and grazing cattle. During the grazing period, five of the beef cattle breeding farmers oversee feeding management. Electric fences are installed by March, when grazing begins. Cattle breeding, pregnancy assessment, and hygiene inspections before grazing are managed by the agricultural cooperative, so that they can determine which pregnant cows are fit for grazing, allowing for the cattle of older farmers to graze first. In addition, in the cooperative, the horns of all cows are severed, making them more docile, avoiding the problem of cows rampaging during grazing when managed by staff other than their owners. Grazing period (April to November) and grazing locations are decided by the agricultural cooperative staff based on the weather and pasture grass growth. In addition to various subsidies, the source of the costs of cattle grazing is covered by a farmland management fee from paddy field farmers, and a usage fee from beef cattle breeding farmers. Since FY2016, both paddy field farmers and beef cattle breeding farmers have participated in information exchange meetings on cattle grazing. Owing to cattle grazing, the community-based farming corporation, with its 30 ha of cultivated land, has obtained subsidies, improved soil fertility, stabilized production and quality, and achieved a farmland rotation system of rice, barley, soybeans, and forage. Individual beef cattle breeding farmers have also realized an increase in the number of their cattle by improving their motivation to farm, in addition to labor savings and a reduction in stored feed. The main four achievements of cattle grazing, as realized through the cooperation between community-based farming organizations, beef cattle breeding farmers, and the agricultural cooperative, are as follows: (1) the 30 ha paddy field grazing has achieved recirculation of local resource in the form of organic matter (pasture grass and compost); (2) it has achieved increased profitability of poorly drained paddy fields of the community-based farming organizations and labor saving for beef cattle breeding farmers, improving agricultural management; and (3) it has created a new cooperative relationship between the community-based farming organizations and beef cattle breeding farmers, with the agricultural cooperative as the hub.

5.6

Conclusions

In this chapter we explained the case of Shimane Prefecture, where communitybased farming organizations in disadvantaged areas have evolved since the 1970s with unique regional policies. We investigated the recirculation of local resources

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from community-based farming organizations based on forage rice production and cattle grazing in paddy fields. The Shimane prefectural government has continued to support “communitycontributing farming” in disadvantaged areas through its unique regional policies since the 1970s, progressing a type of agriculture based on the recirculation of local resources, focusing on community-based farming corporations. The three cases—a single community-based farming corporation, multiple community-based farming organizations, and an agricultural cooperative including community-based farming organizations and livestock farmers—have shown to help the region in several ways, including the recirculation of organic matter within the region, the effective use of farmland, management improvements such as labor savings and the utilization of human resources, increases in the number of residents, etc. Behind these successes, in addition to years of regional policy, is the strong support of agricultural cooperatives and local governments. In the rural communities of disadvantaged areas in Shimane Prefecture, the community-based farming organizations play an important role in promoting the “autonomous and independent lifestyle,” and the agriculture based on the recirculation of local resources, other than being a sustainable means to create profits for the participating farmers, helps support living conditions. These characteristics are shared among the three cases despite their different types. It is also clear from the consensus-building process that communication between each farmer/resident based on a “community logic” is the key to success, and that community-based farming organizations provide opportunities for communication. Acknowledgments This work was supported by JSPS KAKENHI Grant Numbers JP19H03062, JP18K05866, and JP15H04555.

References Ando M (2008) Possibilities and limitations of restructuring paddy field farming by group farming based on community: focusing on the regional diversity reflecting its agricultural structure [Suiden-nogyo-kozo-saihen to Shuraku-eino: Chiiki-teki-tayo-sei ni Chumoku site]. J Rural Econ 80(2):67–77. [in Japanese] Cho K (2005) Vietnamese agriculture and rural areas under the market-oriented economy [Shijokeizai-ka Betonamu no Nogyo to Noson]. Tsukuba-shobo, Tokyo. [in Japanese] Cho K, Yagi H (eds) (2001) Vietnamese agriculture under market-oriented economy. The Agricultural Publishing House, Hanoi Fujie T, Inoue N, Kishida Y (2010) The role of neighborhood effects on agricultural technology diffusion: the case of crossbred “Aigamo” duck farming technology in Japan [Noho-fukyu ni okeru Kinrin-gaibu-sei no Yakuwari: Aigamo-inasaku o Jirei to shite]. Stud Region Sci 40 (2):397–412. [in Japanese] Furuno T (2001) The power of duck: integrated rice and duck farming. Tagari publications, Tasmania Imai Y (2013) Promotion and new developments of community farming-type community contributions in Shimane prefecture [Shimane-ken ni okeru Chiiki-koken-Gata-shuraku-eino no Suisin to Arata na Tenkai]. J Rural Prob 49(2):421–426. [in Japanese]

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Inoue N, Kuraoka T (2014) Significance of incorporation in small-scale community-based farming organizations in hilly and mountainous areas: a case study in Shimane Prefecture [Chusankanchiiki no Shokibo-shuraku-eino-soshiki ni okeru Hojin-ka no Igi: Shimane-ken o Jirei to shite]. In: Taniguchi K (ed) Rural development by regional resources utilization: mainly in less favored area [Chiiki-shigen-katsuyo ni yoru Noson-shinko]. Norin-tokei-shuppan, Tokyo, pp 181–205. [in Japanese] Inoue N, Takeyama K, Yamamoto Y, Yamagishi K (2016) Characteristics of supporting activities for community on group farming organizations [Shuraku-eino-soshiki ni okeru Chiiki-kokenkatsudo no Tokucho]. Jap J Farm Manag 54(2):43–48. [in Japanese] Ito T (1992) The development of village farming and conditions of mutual consent formation [Shuraku-eino to Goi-keisei]. J Rural Probl 28(2):1–8. [in Japanese] Ono T (2010) Development and incorporation of community-based farming [Shuraku-eino no Hatten to Hojin-ka ni tsuite]. Keiei-antei Project Kenkyu-siryo, PRIMAFF 3:1–14. [in Japanese] Senda M (2010) New paddy field agriculture by grazing and future of animal husbandry [Hoboku ga Kiri-hiraku Suiden-nogyo to Chikusan no Mirai]. In: Taniguchi N, Umemoto M, Senda M, Lee Y (eds) A new era of utilizing paddy fields [Suiden-katsuyo-shin-jidai]. Nosan-gyosonbunka-kyokai, Tokyo, pp 241–347. [in Japanese] Takahashi A (2003) Development of group farming through interorganizational relationship [Tayo na Noka-soshiki-kan no Renkei to Shuraku-eino no Hatten]. Norin-tokei-kyokai, Tokyo. [in Japanese] Takenaka K (1981) Changes of village functions and regional agriculture [Shuraku-kino no Hensen to Chiiki-nogyo]. Agric Econ [Nogyo to Keizai] 47(3):5–12. [in Japanese] Taniguchi K (2009) Rural areas management theory in hilly and mountainous areas [Chusankanchiiki-noson-keiei-Ron]. Norin-tokei-shuppan, Tokyo. [in Japanese] Yamashita Y (2008) Practical folklore [Jissen no Minzoku-gaku]. Nosan-gyoson-bunka-kyokai, Tokyo. [in Japanese]

Chapter 6

Diversification Choices for Community-Based Farming Corporations: Focusing on Farm Resources Norikazu Inoue

Abstract The purpose of this chapter is to quantitatively analyze the determinants of farm diversification based on the results of a questionnaire survey of communitybased farming corporations in Akita, Fukui, and Shimane prefectures. First, the relationships between business departments are clarified by cross tabulation. Next, in order to clarify the determinants of farm diversification and forage rice production, we use logistic regression analysis based on the explanatory variables of farm resources, environmentally friendly agriculture, management objectives, and manager’s risk attitude. The cross tabulation shows that diversification has progressed rapidly within the last 10 years, agricultural processing has been functioning as a key to diversification, and the smaller the managed cultivated land area, the more likely the direct sales strategy is to be selected. The estimation results show that location, employees, middle managers, environmentally friendly agriculture, regional contribution orientation, and the manager’s risk attitude are related to diversification choices. Location, managed cultivated land area, and successors are related to forage rice production choices. Human resources, managed cultivated land area, the practice of environmentally friendly agriculture, and risk hedging are important elements of the diversification choices of community-based farming corporations. Keywords Farm diversification · Community-based farming corporation · Farm resource · Forage rice production · Risk attitude

N. Inoue (*) Shimane University, Matsue, Shimane, Japan Institute of Agricultural and Life Sciences, Academic Assembly, Shimane University, Matsue, Shimane, Japan e-mail: [email protected] © Springer Nature Singapore Pte Ltd. 2020 N. Yasunaga, N. Inoue (eds.), Farm and Rural Community Management in Less Favored Areas, New Frontiers in Regional Science: Asian Perspectives 44, https://doi.org/10.1007/978-981-15-7352-1_6

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Introduction

Farm diversification is an effective measure for business and regional development in disadvantaged areas in Asia (Cho and Yagi 2001; Asian Productivity Organization 2004; Cho 2005). In Japan’s farm management, community-based farming corporations that receive public support are required to diversify their agriculture. Farm management business selection is a research theme that was as relevant in the past as it is now (Kanazawa 1984), and it is important to consider diversification as a means of effectively utilizing farm resources and improving profitability through economies of scope, while analyzing economies of scale for each organizational type (Yagi and Fujii 2016). In recent years, the importance of considering farm resources and stakeholders (Yagi 2013, 2018) as well as the importance of considering diversification from the viewpoint of risk management and multifunctionality (Meraner et al. 2015) have been topics for discussion in management strategy theory. Among Japanese farm managements, community-based farming corporations, which have been increasing due to the improved support measures, are expected by both the region and government to have high diversification. As a result, their choices in regards to diversification receive particular attention. In addition, it can be pointed out that community-based farming corporations have more farm resources that affect business selection than family farms, because the former’s organized management aims to realize local common interests through collaboration within the region. Previous studies on the diversification of individual farm management have focused on location, farm size, farm type, and output (Pope and Prescott 1980; Sakurai et al. 2006; Inoue et al. 2010; Meraner et al. 2015); manager age and family workforce (Meraner et al. 2015); manager risk attitude (Inoue et al. 2010); diversification adoption factors and management results (Yoshida and Yagi 2017); the relationship between farm resources and socio-emotional wealth (Yoshida et al. 2018). Regarding the farm resources of community-based farming corporations, it has been shown that, compared to individual family farm management, it is possible to obtain more diverse farm resources (Kuraoka and Inoue 2013), and in the face of falling rice prices, corporations that realize high profits through diversification and employment are increasing (Kitada 2008; Suzuki and Sumita 2016), as are those conducting various community contribution activities that emphasize the relationship with residents (Inoue et al. 2014, 2016). The business choices of community-based farming corporations can be broadly divided into those that specialize in paddy cultivation and those that work on diversification (Kubo 2013). A lot of small-scale organizations that are limited in how they can use their cultivated land work on diversification and contribute to the labor market (Ando 2008), and, as compared to family farm, are established under conditions that make it easier to develop diversification strategies (Takahashi and Umemoto 2009). Furthermore, it has been pointed out that forage rice production, which is gaining attention as a business choice that also contributes to local forage

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self-sufficiency, tends to be selected by community-based farming corporations, and that there is a large difference in approaches depending on location conditions and cooperation/support systems (Tsunekawa 2007). However, there are very few studies quantitatively examining business choices according to farm resources for Japanese community-based farming corporations. Clarifying the determinants of the diversification of Japanese community-based farming corporations will have important implications in considering the management development of agricultural cooperatives and social businesses that, in recent years, have been rapidly increasing in number in Asia. The purpose of this chapter is to quantitatively examine the farm diversification and forage rice production choices of farming corporations based on the results of a questionnaire survey of community-based farming corporations in Akita, Fukui, and Shimane prefectures.

6.2

Object and Methods

This chapter describes the results of a questionnaire survey distributed to the managers of paddy field farm (family-owned, co-owned, and community-based farming organization) in Akita, Fukui, Shiga, and Shimane prefectures through related organizations from August to October 2016. To consider regional characteristics, we use the results of community-based farming corporations in Akita, Fukui, and Shimane prefectures, which have progressed in the organization of communitybased farming in the Tohoku, Chubu, and Chugoku regions, respectively, since the 1970s. The total number of survey distributions was 597, and the collection rate was 58%, of which 158 were effective collections from community-based farming corporations. First, the relationships between business departments are clarified by cross tabulation. Next, the type of business selection is extracted by cluster analysis to clarify its characteristics, and binomial logit model is used to estimate the type of business selection and forage rice production using farm resource variables. This chapter focuses on location conditions, managed cultivated land area, management objectives, manager’s risk attitude, permanent employees, middle managers, and successors as farm resources based on a summary of the above previous studies’ results. Cross tabulation, cluster analysis, and binomial logit model confirmed that there is no significant difference at the 10% level between the ratios and the average values of 71 samples with all items completed. Each of the valid answers (71–158) is included in the analysis. Then, we extract an example of diversification and forage rice production from the samples, and explain the farm diversification process and the characteristics of human resource utilization.

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Relationship Between Business Departments

As shown in Table 6.1, the implementation ratio of the agricultural sectors is not only the paddy rice sector (100%, including wheat and soybeans), which is the core sector, but also the vegetable sector at 42.4%, the forage sector at 39.2%, the livestock sector at 3.2%, and the fruit sector at 3.2%. The implementation ratio of the vertical diversification sectors is 29.7% the direct sales, 15.2% for agricultural processing, 0.6% for restaurants, and 0.6% for tourism. The percentage of businesses less than 10 years is 0.7% for paddy rice, 54.1% for vegetables, 74.5% for forage, 40% for livestock, and 60% for fruits. On the other hand, the diversification sector accounts for 40.5% of direct sales, 34.8% of agricultural processing, 100% of restaurants, and 0% of tourism. As compared to other sectors, rice has a lower percentage of businesses less than 10 years. Figure 6.1 shows the simultaneous implementation ratio of businesses. Among agricultural processing corporations, the proportions of those producing vegetables and those implementing direct sales are both very high at over 60%. This suggests that the secondary industry (processing) is functioning as a key to diversification as a sector adjacent to the primary industry (vegetable production) and the tertiary industry (direct sales). Figure 6.2 shows the percentage of permanent employees per business implementation type. The average for the whole sample is 47%, but corporations that perform agricultural processing reach 70%, indicating that it

Table 6.1 Implementation ratios and elapsed years of business sectors Sectors Rice Vegetable Forage Livestock Fruit Direct sales Agricultural processing Restaurants Tourism Average for all business sectors

Implementation ratios (158) (%) 100.0 42.4 39.2 3.2 3.2 29.7 15.2 0.6 0.6

Percentage of sector that have been implemented for less than 10 years (141) (%) 0.7a 54.1a 74.5a 40.0 60.0 40.5 34.8 100.0 0.0 31.4

Note 1: The sector classification is based on Ohe (2003) Note 2: The number in parentheses indicates the number of valid responses. Since empty answers were excluded, the number of answers for each question does not match Note 3: The “average for all business sectors” is calculated using the total number of business sectors that responded that they had implemented a certain business as the denominator and the number of business sectors that have implemented it for less than 10 years as the numerator a Indicate that there is a significant difference at the 1% level with respect to the average for all business sectors by hypothesis test for difference in proportions

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Vegetables production ratio in agricultural processing corporations Direct sales ratio in agricultural processing corporations Vegetables production ratio in direct sales corporations Forage production ratio in direct sales corporations Direct sales ratio in Vegetables production corporations Forage production ratio in agricultural processing corporations Direct sales ratio in forage production corporations Vegetables production ratio in forage production corporations Forage production ratio in Vegetables production corporations

Agricultural processing ratio in direct sales corporations Agricultural processing ratio in Vegetables production corporations Agricultural processing ratio in forage production corporations

Fig. 6.1 Simultaneous implementation ratios of business sectors (n ¼ 158). Notes: Rice, wheat, and soybeans with an implementation ratio of 100% and fruits, livestock, tourism, and restaurants with an implementation ratio of less than 5% are omitted % 0

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Agricultural processing corporations Direct sales corporations Vegetables production corporations

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Fig. 6.2 Permanent employment ratio by operating corporation (n ¼ 126). Note: Fruits, livestock, tourism, and restaurants with less than 5% implementation are omitted

contributes not only to diversification but also to job creation. Next, Fig. 6.3 shows the average managed cultivated land area by business implementation type. Corporations that carry out direct sales have a smaller area size than corporations that carry out other business. Systematic shipping tends to be a race for the lowest price, and forage production requires a certain number of production units. Community-based farming corporations with smaller managed areas tend to avoid them, opting instead for diversification through direct sales to sales offices, grain stores, individuals, etc. On the other hand, the results suggested that agricultural processing and vegetable production require more managed cultivated land area. As for the relationships between business departments, as shown above, (1) they have greatly increased in the last 10 years, (2) agricultural processing is important for diversification, (3) agricultural processing is good at creating employment, and

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ha 0

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Rice production corporations (total) Forage production corporations Direct sales corporations Fig. 6.3 Average managed cultivated land area. Note: See Fig. 6.2

(4) the smaller the managed cultivated land area, the more likely the direct sales is to be selected.

6.4

Quantitative Analysis of Diversification Choices

Based on the result of Shima (2014), for new agricultural businesses, 5 years are necessary to get on track as an enterprise, and around 10 are necessary to stabilize. Therefore, in this chapter, we use “10 years or more of implementation” as a standard for business departments. We have extracted the two clusters through hierarchical cluster analysis (Ward’s method) using two variables, “business sectors” and “business sectors that have been implemented for more than 10 years.” We call the cluster that has no vegetables sector and agricultural processing sector the “paddy type,” and the other one the “diversified type.” Next, we use binomial logit model to estimate the values for diversified type and forage rice production. Candidates for explanatory variables (Table 6.2) include location conditions (prefecture of origin), managed cultivated land area, presence of permanent employees, middle managers and successors, environmental direct payment, management’s orientation (regional contribution, employment maintain, and low cost agriculture), and the manager’s risk attitude (see Note 2 in Table 6.2). The specification of both models is performed by estimating using all candidate explanatory variables, and then deleting the variables, in order, beginning with the one with the lowest absolute Z-value, until the AIC is minimized. The results are the estimations shown in Tables 6.3 and 6.4. The diversified type model is located in Akita Prefecture, has permanent employees, has middle managers, has an environmental direct payment, has a business contributing to the village, and has a significantly positive coefficient of risk attitude (selecting business H; see Note 2 in Table 6.2). In the forage rice production model, the coefficients of Shimane Prefecture’s location and the managed cultivated land area are significantly positive, and the coefficients of the second term of the managed cultivated land area and the presence of successors are significantly negative.

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Table 6.2 Explained variables and candidate explanatory variables (n ¼ 71)a Variable Definition Explained variables Diversified typeb ¼1 if diversified type Forage rice ¼1 if corporation produces forage rice production Candidate explanatory variables Locate in Akita ¼1 if corporation is in Akita Prefecture Prefecture Locate in ¼1 if corporation is in Shimane Prefecture Shimane Prefecture Managed cultiha vated land area Permanent ¼1 if there is a permanent employee(s) employment Middle manager ¼1 if there is a middle manager(s) Securing ¼1 if there is a successor successor Environmental ¼1 if corporation receives environmental direct payment direct payment Regional contri- ¼1 if there is a sector(s) whose purpose is to bution orientation contribute to the rural community Employment ¼1 if there is a sector(s) whose purpose is to maintain maintain the employment orientation Focus on low ¼1 if corporation focuses on low cost cost agriculture agriculture Manager’s risk ¼1 if manager selects business Hc attitude

Mean

S.D.

Min

Max

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237

0.63 0.18

0.27 0.52 37.51 0.49 0.68 0.73 0.51 0.85 0.83

0.69 0.20

a Of the n ¼ 141 in the hierarchical cluster analysis of the business sector type, 71 (50.4%), complete with the above variable data, are used. As a result of testing the significant differences between the business unit types in both samples, the null hypothesis was not rejected at the 10% level (test of the difference in ratios) b We have extracted the two clusters, the “paddy type” has no vegetables sector and agricultural processing sector, and the other one the “diversified type” c Assuming any one of the new businesses “H” and “L” can be started without impediment, the following options were presented: (1) start a business H that can earn a profit of either 1 million yen or 2.5 million yen every year, with a probability of 50%; (2) start a business L that can obtain a profit of 1.5 million yen every year; (3) do not start any; (4) do not know. The expected profit of business H (1.75 million yen) is 1.17 times that of Business L. The costs of running business H and L are the same. This means that managers who prefer business H tend not to avoid future dangers (they have low risk aversion). Businesses H and L were set with reference to the options used by Barsky et al. (1997) to determine the degree of risk aversion

From the marginal effects of the diversified type estimation results (Table 6.3), the probability of selecting a diversified type (hereafter, selection probability) in Akita Prefecture is 20.6% points higher. In Akita Prefecture, compared to Fukui and Shimane prefectures, the restrictions on paddy field use during the winter period are

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Table 6.3 Binomial logit estimation results of diversified type Locate in Akita Prefecture Permanent employment Middle manager Securing successor Environmental direct payment Regional contribution orientation Employment maintain orientation Manager’s risk attitude Constant Observations Log likelihood McFadden’s Pseudo R2 LR χ 2(8)

Coefficient 1.541 1.797 2.189 1.484 1.541 2.097 1.102 3.384 2.936 71 29.167 0.375 34.950***

SE 0.895 0.769 0.800 0.822 0.768 1.014 1.029 1.262 1.180

Marginal effect 0.206* 0.240*** 0.292*** 0.198** 0.206** 0.280** 0.147 0.452***

Note 1: *, **, and *** indicate the significance level of 10%, 5%, and 1%, respectively Note 2: All VIF are less than 3, and it is unlikely that multicollinearity has occurred between the explanatory variables Table 6.4 Binomial logit estimation results of forage rice production Locate in Shimane Prefecture Managed cultivated land area Square of managed cultivated land area Permanent employment Securing successor Focus on low cost agriculture Constant Observations Log likelihood McFadden’s Pseudo R2 LR χ 2(6)

Coefficient 2.282 0.198 0.002 1.190 2.569 1.782 6.282 71 22.453 0.336 22.690***

SE 1.023 0.105 0.001 0.825 0.881 1.114 2.415

Marginal effect 0.223** 0.019* 0.0002** 0.116 0.251*** 0.174*

Note: see Table 6.3

greater, so there is a possibility that the creation of winter employment opportunities for youth labor affects the choices of compounding and diversification. The agricultural diversification plan, which was once attempted in rural areas of the Tohoku region, originally also had the aim of keeping the male youth labor force in the region during winter (Kanazawa 1984). The selection probability is 24.0% points higher for permanent employees and 29.2% points higher for middle managers. In the case of agricultural business diversification, it is possible that choices are influenced by whether human resources inside and outside the village can be secured with stability. And the selection probability is 20.6% points higher with the environmental direct payment.

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Environmentally friendly agriculture tends to be low yield and high cost, so it may be diversified as a means of adding high value. If the manager prefers business H (see Note 2 in Table 6.2), the selection probability is 45.2% points higher. This suggests that the reduction of the risk associated with diversification may promote the shift from paddy type to diversified type. Based on the marginal effect of the estimated results of forage rice production (Table 6.4), its selection probability in Shimane Prefecture is 22.3% points higher. In contrast to Akita and Fukui prefectures, Shimane Prefecture has favorable conditions for cooperation with dairy and beef cattle farmers who purchase forage rice, harvest/ preparation contractor organizations, and other community-based farming organizations, which may be affecting the choice of forage rice production. Managed cultivated land area changes the selection probability by 1.9% points for a change from 37.51 ha to 1 ha in the sample average. This suggests that securing working units for dedicated harvesting and preparation machines may be related to the selection of forage rice production. However, since the coefficient of the quadratic term of the managed cultivated land area is significantly negative, there is a tendency for forage rice production not to be selected when the area exceeded a certain level. Furthermore, when there are successors, the selection probability is 25.1% points lower. In other words, it is suggested that the successor might not choose to produce forage rice.

6.5

Case Analysis

Next, from the quantitatively analyzed samples, we extract a corporation that has a paddy rice sector, a vegetable sector, a feed sector, an agricultural processing sector, and a direct sales sector, is working on forage rice production, and conforms to most of the results shown in Tables 6.3 and 6.4. We will organize the characteristics of its diversification process and its utilization of human resources. Table 6.5 shows the management outline of corporation M in Shimane Prefecture, and Table 6.6 shows its management history. Corporation M originates from a farmers’ organization for joint pesticide spraying, which was established in 1961, led by rural leaders, to cooperate with farmers to spray pesticides on paddies in the rural community. They collaborated in spraying pesticides for more than 30 years. However, due to the slump in rice prices in 1997, discussions were held among farmers on reducing production costs. As a result of the consultation, a voluntary farming organization was established in 1997, to promote cost reduction and the communalization of agricultural work through mechanization. The burden of farming, which was previously shared with women, now fell exclusively on men. On the other hand, women now had one fewer opportunity to meet and interact with each other in the rural community. Rural leaders, who felt they had to do something to fight the decreasing level of communication in the rural community, coincidentally received a request from a resident Korean organization to make Chinese cabbage, which was used as a raw material for the kimchi that they sold during events.

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Table 6.5 Business outline of corporation M (2015) Managed cultivated land area Paddy rice (for direct consumption and processing) Forage rice (whole-crop-silage) Forage rice grain Wheat Broccoli Other vegetables Contracted work area Rice (pesticides, desiccation) Forage rice (pesticides) Number of members General affairs department Production department Machinery facility department Processing department Characteristic rice production technology Production of fermented rice husk compost Compost application in cooperation with livestock farmers Direct sowing

38.9 ha 26.1 ha 4.1 ha 3.8 ha 3.5 ha 1.0 ha 0.3 ha 36 ha 30 ha 6 ha 42 8 14 6 14

Source: field survey and corporation data Table 6.6 History of corporation M (until 2015) Year 1961 1997 1998 2003 2005 2008 2010 2011 2012

2013 2014

Topics Commenced joint use of pesticides on paddies throughout the village Discussed ways to reduce production costs in response to rice price slump Community-based farming organization established Considering transition to corporation with rice policy reforms Establishment of processing department by women Tractor and rice transplanter (eight-row planting) introduced Combine harvester (five-row harvester) introduced Intra-processing management machinery introduced Incorporation Women turn into regular union members Rice transplanter for sparse and direct sowing (six-row), tractor introduced Paddy plot expansion (removal of ridges) Expansion of contracted work area (3 ha), construction of agricultural processing plant Construction of cereal desiccation facility, production of forage rice started

Source: see Table 6.5

Chinese cabbage production was started, mainly by women, and several women in the rural community were instructed in kimchi processing by the Koreans living in Shimane Prefecture and started independently producing it. Then, led by rural leaders and women who had been trained in kimchi making, a processing department

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was established in 2005, and the organization started pickle processing centered on kimchi, which was produced in the kitchen of the member’s home. In 2012, when the community-based farming shifted from a voluntary organization to a corporation, the women involved in processing became full-time members of its production department. At the same time, a large rice transplanter and tractor were purchased to expand the field lot (ridge removal). In 2013, a pickling/prepared foods processing plant was built in the rural community. After that, using the agricultural products harvested in the settlement, the corporation has been developing several varieties of safe and secure pickles and prepared foods in small amounts, without using additives. The shipments and sales destinations of these processed products are direct sales stores, supermarkets, and rural events. In 2014, a cereal desiccation and preparation facility was constructed and production of forage rice started. In this way, corporation M promoted business diversification through vegetable production, agricultural processing, and direct sales for the purpose of contributing to the local community and aiding women’s exchanges, through long-term efforts of rural leaders who are not risk-adverse. Efficiency and environmentally friendly agriculture have also been realized.

6.6

Conclusions

In this chapter, we quantitatively analyzed the determinants of farm diversification based on the results of a questionnaire survey of community-based farming corporations in Akita, Fukui, and Shimane prefectures. As for the relationships between business departments, as shown by the results, (1) they have greatly increased in the last 10 years, (2) agricultural processing is important for diversification, (3) agricultural processing is very good at creating employment, and (4) the smaller the managed cultivated land area, the more likely the direct sales strategy is to be selected. The results suggest that the diversification choices might be related to the location conditions, employees, middle managers, environmentally friendly agriculture initiatives, management objectives, and the manager’s risk attitude. Above all, the marginal effect of the variable of the manager’s risk attitude is particularly high. Inoue et al. (2010) clarified the tendency that, for individually managed organizations, diversification was less likely to be implemented the higher the risk aversion of the manager was. It is suggested that the risk management of farm diversification should be considered in the business selection of the community-based farming corporation which is managed as an organization. In terms of forage rice production, the results suggest that location conditions, managed cultivated land area, and the presence of successors might influence business choices. In the diversification of community-based farming corporations, in addition to tangible and intangible support measures to secure stable human resources, arable land, and environmentally friendly agriculture, diversification and its inherent risk hedging functions play an important role in a variety of situations. In addition, as

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evident from the case analysis of the corporation, farm diversification can also be important for the inclusion of women in the work force. Diversification of community-based farming corporations will become even more important in the future in terms of not only improving the efficiency of local agriculture, but also contributing to the region through the effective use of human resources, including women. These findings have much in common with the results of examining the rapidly developing agricultural cooperatives and social business management in various parts of Asia. Acknowledgments This work is the result of new models and estimates performed using the data from Inoue (2019) and adding a new case analysis. This work was supported by JSPS KAKENHI Grant Numbers JP19H03062, JP18K05866, and JP15H04555.

References Ando M (2008) Possibilities and limitations of restructuring paddy field farming by group farming based on community: focusing on the regional diversity reflecting its agricultural structure. J Rural Econ 80(2):67–77 Asian Productivity Organization (2004) Agricultural diversification and international competitiveness. The Asian Productivity Organization, Tokyo Barsky RB, Juster TF, Kimball MS, Shapiro MD (1997) Preference parameters and behavioral heterogeneity: an experimental approach in the health and retirement study. Q J Econ 112 (2):537–579 Cho K (2005) Vietnamese agriculture and rural areas under the market-oriented economy. TsukubaShobo, Tokyo Cho K, Yagi H (2001) Vietnamese agriculture under market-oriented economy. The Agricultural Publishing House, Hanoi Inoue N (2019) Business choice based on management resources of community-based farming corporations. Jpn J Farm Manage 57(2):101–106 Inoue N, Fujie T, Sasaki H, Kawasaki K, Koito K (2010) The diversification of the economic activities of farming and farmers’ risk awareness in hilly and mountainous areas. Jpn J Food Agric Resour Econ 61(1):95–105 Inoue N, Takeyama K, Fujie T, Yagi H (2014) Determinants of the adoption of environmentally friendly farming practices on group farming organizations. Jpn J Food Agric Resour Econ 65 (2):1–11 Inoue N, Takeyama K, Yamamoto Y, Yamagishi K (2016) Characteristics of supporting activities for community on group farming organizations. Jpn J Farm Manage 54(2):43–48 Kanazawa N (1984) Theories and realities of Diversification of farm management. Chikyu-sha, Tokyo, pp 2–59 Kitada K (2008) Present problems and situation of diversification of group farming organization: case study of farming corporations based on community. Jpn J Farm Manage 46(2):11–16 Kubo T (2013) The challenges that agricultural production corporations face with regard to training successors. J Rural Plan Assoc 32:317–322 Kuraoka T, Inoue N (2013) Characteristics of personnel management among employees and members of community-based farming corporations : a case study in Hiroshima Prefecture. J Rural Probl 49(1):194–200 Meraner M, Heijman W, Kuhlman T, Finger R (2015) Determinants of farm diversification in the Netherlands. Land Use Policy 42:767–780 Ohe Y (2003) Farm and rural diversifications. Norin-Tokei-Kyokai, Tokyo

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Pope RD, Prescott R (1980) Diversification in relation to farm size and other socioeconomic characteristics. Am J Agric Econ 62(3):554–559 Sakurai S, Yokoyama S, Shimoura S (2006) Diversification of farm household activity and social capital in rural communities. J Rural Econ 2006:1–8 Shima Y (2014) Managerial growth process and support measures on new entry farmers. NorinTokei-Kyokai, Tokyo Suzuki H, Sumita T (2016) The significance and issues of business diversification of the community based faming: a case study on the multi farming area in Yamagata Prefecture. J Rural Soc Econ 34(1):79–86 Takahashi A, Umemoto M (2009) Prerequisite of diversification strategy in merger of group farming organization. Jpn J Farm Manage 47(1):76–81 Tsunekawa I (2007) A study on forage rice production by community-based group farming. Jpn J Farm Manage 45(1):31–34 Yagi H (2013) Empirical persuasiveness in researches on farm business strategy. Jpn J Farm Manage 51(3):12–16 Yagi H (2018) A review of empirical researches on the strategy of firms in agriculture. Jpn J Farm Manage 56(1):19–33 Yagi H, Fujii Y (2016) Difference in rice production economies of scale organizational structure: the consideration of seasonality and multi-unit operation. Jpn J Farm Manage 54(1):105–116 Yoshida S, Yagi H (2017) Determinants of diversification and farm performance of urban farmers: studies based on data from questionnaire survey on farmers in Tokyo. J Rural Plan Assoc 36 (special issue):271–276 Yoshida S, Yagi H, Kiminami A (2018) Management resources and socioemotional wealth related to farm diversification strategy: an empirical study based on a survey to close-to-urban farmers in England. Jpn J Farm Manage 56(3):62–67

Chapter 7

Agriculture Based on Regional Self-Sufficiency in Mountain Villages Norikazu Inoue

Abstract In this chapter, taking the case of Kakinoki Village, Yoshika Town, Shimane Prefecture, we examine the development of agriculture based on local self-sufficiency in mountainous villages from the perspectives of lifestyle, history, and food. Until the 1960s, Kakinoki, a small rural village in western Shimane Prefecture, obtained most of its primary sector revenue from forest products and agriculture-produced foods to make the village self-sufficient. The organic agriculture movement of Kakinoki Village has been developing since the 1980s, providing for the self-sufficient regional eating needs of the region through regional produce, utilizing local resources and know-how to create diversified agriculture with small amounts and a large variety of different products. In addition, Shimane Prefecture’s current organic farming policy implements the philosophy behind the organic farming movement of Kakinoki Village. The factors that have allowed organicbased local self-sufficiency in Kakinoki Village to continue for so many years are community unity and the long-standing efforts of the villagers to learn, practice, and hand down to future generations the philosophy and know-how of living inside and outside the village. Keywords Regional self-sufficiency · Mountain village · Organic farming movement · Rural rebuilding movement · Local government’s organic farming policy

N. Inoue (*) Shimane University, Matsue, Shimane, Japan Institute of Agricultural and Life Sciences, Academic Assembly, Shimane University, Matsue, Shimane, Japan e-mail: [email protected] © Springer Nature Singapore Pte Ltd. 2020 N. Yasunaga, N. Inoue (eds.), Farm and Rural Community Management in Less Favored Areas, New Frontiers in Regional Science: Asian Perspectives 44, https://doi.org/10.1007/978-981-15-7352-1_7

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Introduction

There has been increasing interest in sustainable living and rural development in resource-consuming societies since the Industrial Revolution. Traditional Asian agriculture based on the recirculation of local resources has evolved, and in Asian countries where urban economic growth continues, the importance of “agriculture as a lifestyle” as well as agriculture as a business is rapidly increasing. Agriculture as a lifestyle will also be compatible with the strategic development goals (SDGs) that are now gaining worldwide attention. In Japan, during the period of rapid economic growth, pollution problems such as Minamata disease (Ishimure 1972) and pesticide problems surfaced in agricultural production. The Japan Organic Agriculture Association (Nihon-yuki-nogyokenkyu-kai) was established in 1971 to research alternatives to chemical-dependent agriculture. Compared to the European and American organic movements at the time, the Japanese organic movement was more focused on food safety, health, and sustainable living. Subsequently, “local self-sufficiency” gained attention as a social mechanism that could support organic agriculture. Japanese academic research has been discussing the current significance of regional self-sufficiency since the 1980s. Through research and analysis on organic farming movements throughout Japan, Tabeta (1987) reached the conclusion that regional self-sufficiency based on “agriculture as a lifestyle” can be important. In contrast to the concepts of “stock” and “flow” in economics, they considered the power of producing matter itself to be “reproducible stock” and should be focused on production and social relationships to understand how to secure the flow that allows us to use this stock, which is so important for economic activities, without exhausting it. They proposed “regional self-sufficient economy” as the economic answer. In the 1980s, this way of thinking was not mainstream in the academic world, just as the organic farming movement was not. With the growing interest in sustainable living and rural development in disadvantaged areas, there is an increasing need to reconsider the viability of local self-sufficiency. In recent years, the significance of local self-sufficiency networks in disadvantaged areas has been debated (Iguchi and Masugata 2013; Oe 2015). Previous studies in Japan and the USA have pointed out that small farms that produce large numbers of products are important for locally self-sufficient agriculture (Iinuma 1990; Fitzmaurice and Gareau 2016). In addition, more research is being accumulated on TEIKEI, CSA, and the farmers’ movement as mechanisms to support agriculture based on local self-sufficiency (Hatano 2013; Scoones 2015; Edelman and Borras Jr. 2016). However, there seems to be no research that examines agriculture based on local self-sufficiency focusing on history, lifestyle, and food in a single mountain village. In this chapter, taking the case of Kakinoki Village, Yoshika Town, Shimane Prefecture, where organic farming based on self-sufficiency has been performed for many years, we will examine the development of agriculture based on local selfsufficiency in mountainous villages from the perspectives of lifestyle, history, and food.

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Agricultural Cooperative’s Agrarian Movement and Local Government’s Organic Farming Policy

First, we summarize the Shimane Prefectural Agricultural Cooperative’s agrarian movement, the “Rural Rebuilding Movement,” and Shimane Prefecture’s organic farming policy. The organic farming movement based on regional self-sufficiency in Kakinoki Village was influenced from the Rural Rebuilding Movement and influenced Shimane Prefecture’s organic farming policy.

7.2.1

The Rural Rebuilding Movement

The “Rural Rebuilding Movement (Inaka-saiken-undo)” is based on the “Village Rebuilding Movement (Mura-saiken-undo)” of the Hirose Town Agricultural Cooperative in Shimane Prefecture and was a farmers’ movement that was approved by the Shimane Agricultural Cooperative Association (JA Shimane-chuo-kai) in 1976. The Hirose Town Agricultural Cooperative’s the Village Rebuilding Movement was born in 1974 out of a sense of danger that “being too caught up in the practical aspects of everyday life, we tend to focus on short-term interest and convenience, therefore losing sight of long-term objectives (Murata and Norimoto 1978).” First, they stipulated the customs and rules of discussion necessary for the management of the region in the form of rules and agreements, or management policies, business, and event plans, and tried to make the management of the region easier to understand. Then, the Rural Living Research Committee was established, and in 1976 a report was distributed to farmers in the town. The report described the status of rural life, issues of rehabilitation, and issues and proposals for the soundness of rural life. Issues and proposals for sound rural life were: (1) creating the motivation to protect the village and life within it, (2) measures to improve life on a village basis, (3) measures to preserve the land and use the land for agricultural and forestry production, and (4) measures to improve daily life. It should be noted that living and agricultural/forestry production are inseparable. The following sections are characteristic of agricultural/forestry production. What crops are needed for farmers? Exclusively chasing growing or lucrative products may lead to failure. If business scale is increased within a single crop, pollution can occur. Pears produced in the town go to Kyushu. Local city folks do not eat. The focus should be getting these people to eat them. When the other party of a transaction is a person one knows, one is more likely to reduce the use of pesticides and strive to create a delicious product. Trust is also valuable. However, this is not possible with traditional distribution and sales methods. This needs to be changed where possible. And it is necessary to have the city folks recognize the importance of the villagers. One must not forget to connect with the city and to collaborate with it (Murata and Norimoto 1978).

The key points of the philosophy of the Rural Rebuilding Movement by the Shimane Agricultural Cooperative Association are the 18 items shown in Table 7.1. What is consistent among all of them is how, based on their own beliefs living in

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Table 7.1 Key points of the philosophy of the Rural Rebuilding Movement (1)

(2) (3) (4) (5) (6) (7) (8)

(9) (10) (11) (12) (13) (14) (15) (16) (17) (18)

The meaning of “philosophy” Consistent perspectives and policies on everyday behavior and life Exercising a philosophy that goes beyond seeking profits “Richness” is something like a feast Moderate “richness” Principle of not expanding or operating without reason Roots principle (Nekko Syugi) Non-competitive principle Denial of the principle of power Do not bow to anyone, do not overpower anyone, standalone Denial of the rule of domination Do not control people, do not let people control you, do not sacrifice people, do not let people sacrifice you The principle of survival of the weakest Do not alienate the weak Stop giantism and giant worship Favor localism Familiarism Moderationism Denial of extreme division of labor and overspecialization Denial of becoming overly comfortable Respect for humanity Principle of lies and truth Always live according to “truth” Reconfirming lifestyle philosophy “Lifestyle” implies continuation through time

Source: Summarized by the author from Murata and Norimoto (1978)

rural villages, the cooperative members do not ascribe to the urban logic of profitmaking and competition, but value close and diverse work and their day-to-day lives. It is noteworthy how in the 1970s, at the end of the high economic growth period, the Shimane Agricultural Cooperative had realized their views, despite how little they fit the current mainstream. However, the Rural Rebuilding Movement was extinct after the criticism from outside the agricultural cooperative, that “it did not make the appropriate economic considerations,” and the staff members responsible for it were replaced. This shows how difficult it is to advance a discussion that is centered around ideology.

7.2.2

Shimane Prefecture’s Organic Farming Policy

In Japan, the Organic Agriculture Promotion Act was enacted in 2006 to promote the development of organic agriculture. Initiatives to support organic agriculture have

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begun in each prefecture, but Shimane Prefecture, which provides full support for production, sales, education, and networking, is at the forefront. The Shimane prefectural government clearly positioned organic agriculture as one of the measures to revitalize agriculture and rural areas and formulated the “Shimane Prefecture Organic Agriculture Promotion Plan” in 2008 (revised in 2013). It contains three basic principles: (1) to protect the natural environment and ecosystem and promote organic agriculture, which minimizes the environmental burden of agricultural production; (2) with the increasing focus on food safety and security, and the return to rural areas and nature, to tackle organic agriculture while utilizing the technologies and skills that have been developed; and (3) by supporting returners/newcomers (common name in Japan is UI-turners) who aim for organic farming, promote distinctive agricultural production, and aim to create a community that makes the best possible use of nature and the climate. In addition, the following three points are given as indications for the organic agriculture being promoted: (1) Do not use synthetic fertilizers and pesticides and do not use genetic recombination technology. (2) By effectively utilizing local resources, the natural recirculation function of agriculture will be greatly enhanced, achieving harmony within the ecosystem. (3) Use the agricultural production methods that have the least possible impact on the environment. The following two points are set as the direction for the promotion of organic agriculture: (1) Promote “initiatives based on local self-sufficiency” and “initiatives developed as economic activities” as two wheels of a single car. (2) Begin accepting returners/newcomers and promote initiatives to contribute to the revitalization and settlement of Shimane agriculture by fostering leading personnel. In addition, the following five points are given as practical promotion measures: (1) support for organic agricultural production, (2) support for the development of leading figures, (3) support for the sales of organic agricultural products, (4) promotion of the understanding of organic farming, and (5) building producer-to-consumer networks. Shimane prefectural government implements its organic agriculture promotion measures, as well as its new farmer and farming education measures, in cooperation with related organizations such as municipalities and agricultural cooperatives, a prefectural agriculture and forestry college, prefectural agricultural experimental stations, and organic farmers in Shimane Prefecture. In addition to the “Declaration of Agriculture for the Environment (Kankyo wo Mamoru Nogyo-sengen),” it is also working to build networks with farmers and consumers. It is also noteworthy that the Shimane prefectural government has adopted the principles of TEIKEI and CSA. We think that the reason Shimane Prefecture’s organic farming policy is so advanced and comprehensive is because of the practice of organic farming in various areas of Shimane Prefecture since the 1950s (National Consumer Affairs Center of Japan 1987; Masugata 2008; Iguchi and Masugata 2013) and the aforementioned movements. What is also noteworthy in Shimane Prefecture’s organic farming policy is that it has clarified its position to support both local self-sufficiencybased initiatives and economic activities. And one of the models of local selfsufficiency-based initiatives is Kakinoki Village’s organic agriculture movement based on regional self-sufficiency.

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Kakinoki Village and the Rural Economic Rehabilitation Plan

Kakinoki Village is in the mountainous area in the southwestern part of Shimane Prefecture. In October 2005, it merged with the neighboring Muikaichi Town to become Yoshika Town. Kakinoki Village belonged to the Tsuwano clan during the feudal era. It was formed on one of the main roads that the feudal lords would use to return to the capital and was established in 1889 with the Municipal Government Act. By 2005, 116 years later, it was one of the longest-standing villages in Japan. Kakinoki Village has a total area of 137.72 km2 and a forest area ratio of 96%. A class A river, Takatsu River, flows through the center of the village (Fig. 7.1), and in addition to forest products, there are abundant marine products such as ayu sweetfish. Kakinoki Village has protected its farmland over time, including its rice terraces (Fig. 7.2) with more than 600 years of history. However, it is 41 km away from the nearest city center and, in the winter, it receives large amounts of snow. According to a survey by the Ministry of Agriculture, Forestry and Fisheries, there were a total of 216 farms in 2015, of which 137 sold their products. The number of selling farmers is 299, and their average age is 63.8, 2.4 years higher than the Shimane Prefecture average. Out of the 137 selling farms, 43.8% have successors, 10.4 points below the Shimane Prefecture average. The average cultivated land area

Fig. 7.1 Takatsu River flowing through the center of Kakinoki Village

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Fig. 7.2 Rice terraces in Ohidani, Kakinoki Village

is 1.04 ha, which is 0.27 ha below the Shimane Prefecture average. Rice accounts for the largest percentage of sales at 65.8%, while field vegetables are at 14.9% and greenhouse vegetables at 7.9%. Compared to the Shimane Prefecture average, the percentage of farmers producing both rice and vegetables is higher. In addition, out of the selling farmers, the percentage using a reduced amount of chemical fertilizer, those using a reduced amount of pesticides, and those using composting to improve the soil are 41.6%, 52.6%, and 38.0%, which are 22.8–29.9% higher than average of Shimane Prefecture. Even in Shimane Prefecture, which is at the forefront of organic farming, Kakinoki Village’s organic agriculture stands out. Kakinoki Village’s population peaked at 4050 in 1955, but fell to 2997 in 1970, 15 years after the period of rapid economic growth. As of October 2019, the population of Kakinoki is 1461 (36% of the peak), and while the population is sparse and aging, there are many coming back to and newly moving into the village from urban areas. For example, Kakinoki Village administration has welcomed 78 households and 131 people in the 7 years from 1993 to 2000 through village population measures. In addition, 41 people from 24 households under the age of 45 were welcomed back to or into the village between 2001 and 2003. The number of returners/newcomers has not been counted at the town-level since Kakinoki Village became part of Yoshika Town in 2005, but, according to the leader of the organic farming movement, the population influx continued even after the merger, and it has increased from eastern Japan after the nuclear power plant accidents of

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March 2011. Many of the returners/newcomers have moved to Kakinoki Village because they are attracted by organic farming based on local self-sufficiency. Most of them are engaged in agricultural/forestry production and agricultural processing and support the village’s food production. To talk about organic farming based on the local self-sufficiency of Kakinoki Village, it is necessary to read the “Rural Economic Rehabilitation Plan (Nosonkeizai-kosei-keikaku),” which the residents gathered to write in 1993. This plan was based on the Ministry of Agriculture and Forestry’s “Agricultural, Mountain, and Fishing Villages Economic Rehabilitation Plan Establishing Movement” established during the Great Depression from 1932 to 1940. The aim of the movement was to realize economic rehabilitation by the cooperation of agricultural, mountain, and fishing villages experiencing economic depression in cities. The main pillar of the movement saw agricultural, mountain, and fishing villages being selected from all over the country to establish their own economic rehabilitation plans, and Kakinoki Village was one of them. Kakinoki Village’s “Rural Economic Rehabilitation Plan” is very unique. Many plans advocate creating a profitable structure through business diversification, while Kakinoki Village planned to improve agricultural production in six sectors (rice, wheat, lotus flower, sericulture, cattle, and poultry). In addition to the detailed analysis of the current situation and improvement plans for the nine sub-sectors (papermaking, raw materials, charcoal, wasabi, shiitake mushrooms, konjac potatoes, fruit trees, etc.), such as solid farmer life and agricultural training for young people, it also had detailed plans for lifestyle improvements. Moreover, the philosophy set at that time was the same as the current philosophy of agriculture based on local self-sufficiency in Kakinoki Village. Volunteers from the village (members of the Kakinoki Village Organic Agriculture Association) copied the materials of this project and distributed them to all the village households in the 1980s. It was translated into modern Japanese with the help of a university professor and distributed to all households again in 2017. These facts show that the philosophy of the project has been inherited today. Inheritance of such a philosophy from villagers is extremely rare nationwide. The following is a description of the project’s philosophy: This village is essentially a rural village, and “agriculture” is the legacy of its forebears. In advancing agriculture, we must not commit any wrongs such as forgetting the legacy of our elders. Agricultural management is not immediately profitable. Therefore, we should not concentrate solely on making profits, making to sell, selling to buy, buying to make, and always making a profit doing so. When one is dedicated only to profits, unexpected events turn into losses, and losses turn into debt. Agriculture is inherently unprofitable and should be aimed at maintaining the stability of daily life. In other words, it is not a profit-oriented business but a rather a production–health-oriented one. It respects labor, does all that is possible to achieve diversification, measures increases in production, makes and consumes, sells if there is surplus, buys with the earnings, always aims for the improvement of life, does not focus on profits, works hard, works on self-sufficiency, sets goals by controlling expenditures by generating income, and generates surplus without actively pursuing it, resulting in debt repayments and increased savings (Kakinoki Village 1933).

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Plans declaring that “agriculture is not immediately profitable” are very rare. The philosophy discussed here is that if the villagers work together based on lifestyleoriented rather than profit-oriented principles and diversify their businesses based on local self-sufficiency, the result is a richer life. Mr. Atsushi Fukuhara, one of the leaders of the organic farming movement in Kakinoki Village, also shares this philosophy: At present, as we face a major turning point: even if income and convenience increase, farmers will no longer cultivate farmland, and if craftsmen forget their skills, they will fall. We must reconsider the pursuit of urban life, giving priority to money and convenience, and work on creating a new community to realize the richness of self-subsistence living in harmony with nature and people (Fukuhara 2013).

7.4 7.4.1

History of the Organic Farming Movement in Kakinoki Village Cooperation with Consumer Groups

Table 7.2 shows the history of organic farming in Kakinoki Village. Organic farming in the village was triggered by a partnership with a consumer group. From the end of World War II to the 1960s, income from the primary industry was dominated by forest products such as shiitake mushrooms, wasabi, and chestnuts. Kakinoki’s agricultural products were geared toward self-sufficiency rather than profit generation. However, during the first oil shock, the price of heavy oil used for drying shiitake mushrooms doubled, and many villagers felt the danger inherent in production supported by overseas resources. Nationwide, the negative aspects of the chemical industry and its effects on agriculture, such as pollution and pesticides, began to attract attention. Therefore, Mr. Fukuhara, who joined the Kakinoki Village office in 1972, and the young agriculture and forestry successors of the Kakinoki Village Agricultural and Forestry Improvement Youth Conference, including young man who graduated from an urban university and then became a farmer/forester, played a central role. Discussions were also made while actively incorporating the opinions of the female farmers department of the agricultural cooperative. As a result, it was argued that making food based on local self-sufficiency was the key to the richness of mountain villages and that diversified small-scale organic farming should be the basis to achieve this. Among the many activities listed there are: making rice and vegetables for one’s family first; inheriting the food culture of miso, mochi, pickles, wild vegetables, etc.; breeding poultry for self-sufficiency; utilizing forestry and Takatsu River resources; becoming self-sufficient energy-wise through firewood and charcoal, etc. Miso making for self-sufficiency spread throughout the village under the influence of soybean cultivation, which began because of the national policy of reducing rice acreage, with the enthusiastic guidance of a village school dietitian.

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Table 7.2 The history of organic farming in Kakinoki Village Year 1933 1955 1974 1975 1981

1983 1986 1987 1991 1993 1995 1996 1997 2003 2005 2007 2008 2014 2015

Topics Rural Economic Rehabilitation Plan completed Population peak (4050) A village official encourages young agriculture and forestry successors to subscribe to a series of articles on the evils of modern agriculture Volunteers join the Yamaguchi Prefectural Organic Agriculture Association and start a self-sufficiency movement Kakinoki Village Organic Agriculture Association established The association joined the Japan Organic Agriculture Association and started supplying agricultural products to consumer groups Started supplying miso to Masuda City for school lunches Started supplying ingredients to Kakinoki Village for school lunches Agricultural processing plant completed Kakinoki Village Agricultural Processing Association established Start supplying agricultural products to cooperative Kakinoki Village Comprehensive Promotion Plan advocates creating a healthy village that farms organically Third Sector Epok Kakinoki-mura Co., Ltd. established Started operation of the agricultural cooperative distribution center of the agricultural cooperative Kakinoki Village Organic Vegetables Association established Roadside station opens in the village Village antenna shop opened in Hatsukaichi City, Hiroshima Prefecture Kakinoki Village Direct Sales Association established Yoshika town founded (merged with Muikaichi Town) Held the first food and culinary festival Promotion of organic farming specified in the Yoshika Town Comprehensive Promotion Plan Designated as a model town for organic agriculture promotion project Business Union established Free school lunches provided in Yoshika Town

Source: The Kakinoki Village Organic Agriculture Association and the Kakinoki Village office

In 1975, Mr. Fukuhara and some other villagers joined the Yamaguchi Prefecture Organic Agriculture Association and began learning and interacting with consumer groups in Yamaguchi Prefecture, which not only wanted to ensure safe food, but also to actively engage in activities to protect the natural environment, such as making handmade soap to avoid using synthetic detergents. Through exchange activities with consumer groups in Yamaguchi Prefecture, the awareness and behavior of Kakinoki’s movement members expanded not only to agriculture and food, but also to the preservation of the natural environment and the improvement of the lifestyle necessary for it. While they were building trust with consumer groups in Yamaguchi Prefecture, in October 1980, a consumer group in Iwakuni-shi addressed the movement

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members with a letter saying, “We would like you to share with us the produce that you cultivate for your families.” The letter also included the following statement: Where did the taste and aroma of ripe tomatoes and fragrant cucumbers go—the vegetables and fruits that we ate as children? Our lives are surrounded by an abundance of rice, vegetables, and eggs. However, our diets, despite this quantity, have not improved. If the soil gets sick, so will the food, and the creatures on the ground will eat it and eventually get sick themselves. Now that the evils of rapid agricultural modernization have been pointed out, we cannot remain indifferent to the food we place on our tables each day. Before asking whether there are not any problems with our food, we started a gathering of consumers to review the soil, looking for ways to cure it. Our group, together with the producers who want to find alternatives to agriculture with synthetic fertilizers and pesticides, will work to restore the natural balance of organic agriculture. We hope that our little movement will be understood by producers, and that they will play a part in reviving the soil (source: the Kakinoki Village Organic Agriculture Association).

Kakinoki Village’s organic farming movement began when the members of the movement received this letter. Members of the movement realized that it was important to work with consumers who care about the soil and nature, not just within the village. The movement members started supplying vegetables to consumer groups in Iwakuni-shi in October 1980 and started the “Organic Farming Panel,” increasing the number of associates, mainly young agricultural and forestry successors, and began developing practical measures. However, since they were unsure whether the young agriculture and forestry successors alone would be able to supply the products of their self-sufficient agriculture to consumer groups, they sought assistance from the women’s cooperative in the village. Since there were women farmers who had cooperated with the movement for some time, members of the female farmers department of the agricultural cooperative also joined the activity, and in January 1981, the Kakinoki Village Organic Agriculture Association was established with 15 members. The group has set the following activity targets with the aim of creating a livable environment and healthy villages: To protect healthy living: (1) become self-sufficient and supply vegetables through organic agriculture; (2) remove food additives and promote additive-free foods and pollution-free homemade food; and (3) promote whole-grain rice. To protect the environment and the household economy: (1) switch from synthetic detergents to natural soap; (2) save resources and energy; and (3) gather information and publish bulletins.

In 1982, they independently purchased trucks to transport agricultural products and held exchange meetings with consumer groups. Simultaneously with the opening of an agricultural product processing plant in 1986, they widened their product distribution to consumer groups in nearby cities in the Yamaguchi and Shimane prefectures. In 1988, they started supplying specially cultivated rice (less than 50% of synthetic fertilizers and pesticides used). In 1992, they started supplying agricultural products to a cooperative that value organic agriculture.

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Supplying Ingredients for School Lunches

Currently, the farmers’ association in Yoshika Town supplies ingredients for school lunches throughout the town. This started with a food self-sufficiency campaign through soybean cultivation, miso making, and vegetable cultivation by the women’s cooperative in Kakinoki Village. In the 1970s, under the guidance of the village school dietitian, the female farmers department of the agricultural cooperative made miso using soybeans, which had been produced under the national policy of reducing rice acreage, to further the food self-sufficiency objectives. In 1975, the school dietitian was transferred to Masuda City, where she learned it was not possible to safely procure homemade miso within the city. Therefore, she asked them to provide Kakinoki’s homemade miso to Masuda City for school lunches. Therefore, volunteers formed a group and began supplying handmade miso to Masuda City for school lunches in 1983. In 1986, the Kakinoki Village Agricultural Processing Plant was completed. In the same year, the Kakinoki Village Agricultural Processing Association was established by miso-making members, expanding the range of ingredients produced in the village. The Kakinoki Village Organic Agriculture Association, which included leaders in miso making, started supplying organic vegetables to school meals in the village in 1983 and supplying organic rice in 1992 and has been doing so to this day.

7.4.3

Establishment of a Distribution System for Organic Agricultural Products and Processed Agricultural Products as an “Organic Farming Village”

In the 1980s, the activities of organic farming, school lunch provision, and environmental conservation by the Kakinoki Village Organic Agriculture Association gained recognition within the village and the Kakinoki Village Comprehensive Promotion Plan from 1991 based on the objective of “creating a healthy village that farms organically.” Organic farming based on regional self-sufficiency was a basic, village-wide activity. The basic goals were (1) the creation of a healthy village that farms organically, (2) the exchange with cities, and (3) the creation of welfare in the village. The average number of cultivated items by farmers who practice organic farming reached 60, and activities to supply the surplus of self-sufficient farming gradually became established. To promote the creation of a healthy village that farms organically, the Kakinoki Village office established a third sector company, Epoc Kakinoki-mura Co., Ltd., in 1993, which distributes organic agricultural products and processed products. In 1997, the third sector company opened a direct sales store for these products at the roadside station in Kakinoki Village. Farmer organizations for shipping to the direct sales store were also established by the third sector company. In 1995, the agricultural cooperative in Kakinoki Village set up an organic agricultural product

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distribution center to support the collection and shipping operations of organic farmers outside of the cooperative. In 1996, when cooperatives valuing organic farming were established in Yamaguchi and Hiroshima prefectures, asking for a supply of organic vegetables, the Kakinoki Village Organic Vegetables Association was established to provide them as well as supermarkets with their organic produce (Ojima et al. 2013). In addition, an organic café run by an old private house opened in 1996, offering not only local and domestic specialty products and food, but also organic farming education, the returners/newcomers support, the commercialization of rice crackers that use local river fish as ingredients, etc. Kakinoki Village has set its own standards for cultivating organic agricultural products and labels vegetables and rice harvested on farmland that has not used synthetic fertilizers and pesticides for more than 2 years as “V1” and “R1.” In 2003, they opened a village antenna shop for organic and processed agricultural products in Hatsukaichi-shi, Hiroshima Prefecture (1.5 h by car from the village). The Kakinoki Village Comprehensive Promotion Plan, which was revised in 2001, inherited the objective of “creating a healthy village that farms organically” and stipulated the following basic concepts: The goal of village development is to ensure that all the villagers have a healthy and fulfilled life, both materially and spiritually. In this plan, we will reconsider the true meaning of organic agriculture, and we will reconfirm the ideal meanings of “agriculture,” “consumption,” and “lifestyle,” while aiming for coexistence with nature, cooperation between people, and cooperation with cities. Organic agriculture is the ideal form of agriculture, which integrates concepts such as: (1) creating a “living” soil, (2) cultivating a large variety of crops in the right place at the right time, (3) coexisting with insects, birds, and all living things, (4) keeping the environment clean and respecting the ecosystem, and (5) creating a personal, mutually beneficial relationship between producers and consumers. Organic agricultural products do not use synthetic resources such as chemical fertilizers and pesticides, biopharmaceuticals, radioactive materials, genetically modified seeds and products, etc., anywhere in the process from production to consumption. They utilize local resources as much as possible, respecting nature’s inherent force. The goals of organic agriculture are: (1) producing safe and high-quality food, (2) protecting the environment, (3) coexisting with nature, (4) local self-sufficiency and resource recirculation, (5) maintaining and improving the soil, (6) protecting biodiversity, (7) ensuring a healthy livestock-raising environment, (8) guaranteeing the livelihood of producers and laborers, (9) promoting partnerships between producers and consumers, and (10) spreading the value of agriculture and building a society that respects life (Kakinoki Village 2001).

It is extremely rare for a village administration to make organic farming, as the ideal agriculture, a pillar of the basic philosophy of the village. Even after being merged with Yoshika Town in 2005, this basic concept has not changed.

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Organic Farming Based on Local Self-Sufficiency in Kakinoki Village

This section summarizes organic self-sufficiency initiatives centered on Kakinoki Village, now part of Yoshika Town, regarding business unions, school food supply, and food festivals.

7.5.1

Business Union

The agricultural cooperative in the village, which operated the organic agricultural product distribution center was reorganized in 2015 as the Shimane Prefecture Agricultural Cooperative (JA Shimane). Prior to its reorganization, the leaders of the organic farming movement in the village, including the founding members of the Kakinoki Village Organic Agricultural Association, anticipated that it would be difficult for the reorganized cooperative to continue to take charge of the collection and shipping operations of the organic agricultural product distribution center and discussed their options over a year with the stakeholders. As a result, organic farmers in Kakinoki Village resolved to establish a new organization that would be responsible for businesses related to the production and distribution of organic agricultural produce and processed products, food and health, environmental protection, and lifestyle. This new business union, the Food and Agri Kakinoki-mura (Shoku to No Kakinoki-mura) was established in 2014 with 49 members. The six organizations consisted of the Kakinoki Village Organic Agriculture Association (25 people), the Kakinoki Village Organic Vegetable Association (15 people), the Organic Rice Association (nine people), the Kakinoki Village Agricultural Processing Association (eight people), the Organic Vegetable Association (four people), and the organic café. The number of members in parentheses is as of 2018, and some members belonged to multiple organizations. In Kakinoki Village, the objective of “creating a healthy village that farms organically” was promoted mainly by this corporate union in cooperation with the agricultural cooperative, the third sector, the Yoshika Town Office, and residents’ organizations. The collection and shipping of organic agricultural products by the constituent organizations are carried out by the agricultural cooperative, and the members of each organization cooperate within its facilities. The Kakinoki Village Organic Agriculture Association is the largest organic farming organization in the village and has been the leader of the local organic farming movement, continuing its business relationships with the consumer groups to this day. The Kakinoki Village Agricultural Processing Association has a track record of manufacturing and selling 10 tons of miso per year at their peak. They supply their main product, miso, not only to school meals but also to consumer groups, supermarkets, and direct sales stores. They also focus on the production and sale of mochi and prepared dishes, and in recent years, female newcomers from cities in their 20s and 30s have joined the

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association. The organic café, in addition to operating as a café, manufactures and sells homemade processed foods, supports the returners/newcomers, expands its network by participating in the Japan Organic Agriculture Association, and cooperates with an agricultural high school specializing in organic agriculture in Mie Prefecture, promoting its business and resulting lifestyle improvements.

7.5.2

Supplying Ingredients for School Lunches

Since the village became part of Yoshika Town in 2005, all the elementary and junior high schools in the town have been supplied with organic agricultural products from the town (495 meals in 2018). The farmers have supplied a wide range of products, including organic rice, organic vegetables, processed agricultural products, wild vegetables, livestock products, and fruit. In 2018, 45% of the food served in the school was procured from within the town. Yoshika Town Office has established a system to provide local children with safe foods produced locally, including, beginning in 2015, making lunches free. One of the efforts that Mr. Fukuhara and other leaders are currently focusing on is to have the parents of local children understand proper agriculture and eating habits and improve their lifestyles accordingly.

7.5.3

Food and Culinary Festival

Since the merger into Yoshika Town, the Food and Culinary Festival (Shoku no Bunka-sai) has become a way to increase awareness and action toward lifestyles improvements prioritizing local self-sufficiency. This is an event where participants bring seasonal home-cooked meals and eat and compare them with the aim of reviewing local eating habits. The festival was organized by the leaders of the organic agriculture movement and others, and the town office acts as secretariat. The festival was held in November 2005, June 2006, and August 2007, and participants brought in home-cooked dishes according to the season each time. There were 149 residents who brought food, with a total of 337 items on display. The town office collected 332 of those items into a recipe book and distributed it to all households in the town. Ten years after becoming Yoshika Town, in 2015, the Kakinoki villagers established a new resident organization to promote the village. The activities of this organization (Tezukuri-jichiku Kakinoki-mura) cover a wide range, including forestry and rice terraces conservation activities, and food and agricultural education activities in cooperation with elementary and junior high schools, lectures, and workshops. To celebrate 10 years since the recipes were distributed within the town, the organization held the food and culinary festivals in Kakinoki Village

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(four times by January 2019), creating new seasonal recipes and distributing them to all households in the village.

7.6

Conclusions

In this chapter, taking the case of Kakinoki Village, Yoshika Town, Shimane Prefecture, we have examined the development of agriculture based on local selfsufficiency in mountainous villages from the perspectives of history, lifestyle, and food. Kakinoki is a small rural village in the mountains, based on local self-sufficiency, small-scale, multi-item, diversified agriculture, which utilizes local resources and know-how and whose eating habits are centered around local, seasonal products. Even after it was merged into Yoshika Town together with Muikaichi Town in 2005, these principles remained unchanged. In addition, Shimane Prefecture’s current organic farming policy implements the philosophy behind the organic farming movement of Kakinoki Village. The reason that “autonomous and independent lifestyle (Yamashita 2008)” has continued for so many years in Kakinoki Village is that “the villagers are united and share consistent values despite the inconveniences of their location (Kakinoki Village 1933).” In addition to this characteristic of the village, other reasons are the efforts that villagers have made, through many years, to learn the philosophy and know-how of past generations while implementing them and then handing them down to future ones, through agrarian movements such as the Rural Economic Rehabilitation Plan and the Rural Rebuilding Movement.

References Edelman M, Borras S Jr (2016) Political dynamics of transnational agrarian movements. Fernwood Publishing, Nova Scotia Fitzmaurice CJ, Gareau BJ (2016) Organic futures: struggling for sustainability on the small farm. Yale University Press, New Haven Fukuhara A (2013) Organic farming based on self-sufficiency: Yoshika town, Shimane prefecture [Jikyu o Besu to shita Yuki-nogyo: Shimane-ken Yoshika-cho]. In: Iguchi T and Masugata T eds., regional self-sufficiency networks [Chiiki-jikyu no Nettowaku]. Commons, Tokyo, pp 156–173. [in Japanese] Hatano T (2013) Status of CSA and factors of stagnation of TEIKEI: Swiss CSA and TEIKEI principles [CSA no Genjyo to Sansho-teikei no Teitai-yoin: Suisu CSA no Totatsu-ten to Sansho-teikei-gensoku]. Jap J Organ Agric Sci 5(1):21–32. [in Japanese] Iguchi T, Masugata T (eds) (2013) Regional self-sufficiency networks [Chiiki-jikyu no Nettowaku]. Commons, Tokyo. [in Japanese] Iinuma J (1990) Agriculture can be rebuilt [Nogyo Wa Saiken Dekiru]. Diamond-sha, Tokyo. [in Japanese]

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Ishimure M (1972) Paradise in the sea of sorrow: our Minamata disease [Kukai-jyodo: Waga Minamata-byo]. Kodan-sha, Tokyo [in Japanese] (Translated into English by Livia M, Michigan Classics in Japanese Studies, the University of Michigan, Michigan, 2003) Kakinoki Village (1933) Rural economic rehabilitation plan [Noson-keizai-kosei-keikaku]. Kakinoki Village, Shimane Prefecture [in Japanese] (Translated into modern Japanese by Inoue N, 2017) Kakinoki Village (2001) Kakinoki Village comprehensive promotion plan [Kakinoki-mura Sogoshinko-keikaku]. Kakinoki Village, Shimane Prefecture. [in Japanese] Masugata T (2008) Organic farming movement and network for TEIKEI [Yuki-nogyo-undo to Teikei no Nettowaku]. Shinyo-sha, Tokyo. [in Japanese] Murata M, Norimoto K (1978) Rural rebuilding movement: farmers’ declaration of independence [Inaka-saiken-undo: Hyakusho no Dokuritsu-sengen]. Nihon-keizai-hyoron-sha, Tokyo. [in Japanese] National Consumer Affairs Center of Japan (1987) Regional self-sufficiency and the logic of agriculture: socio-economics for survival [Chiiki-jikyu to No no Ronri: Seizon no tame no Shakai-keizai-gaku]. Gakuyo-shobo, Tokyo. [in Japanese] Ojima K, Satoh T, Datai H (2013) Sales of organic farm products using various distribution channels: circumstances and problems [Tayo na Ryutsu-channeru o Katsuyo shita Yukinosan-butsu-to no Hambai-jittai to Kadai]. J Rural Probl 49(2):403–408. [in Japanese] Oe T (2015) Hopes in rural areas: creating communities, people, and jobs [Chiiki ni Kibo Ari: Machi Hito Shigoto o Tsukuru]. Iwanami-shoten, Tokyo. [in Japanese] Scoones I (2015) Sustainable livelihoods and rural development. Practical Action Publishing, Warwickshire Tabeta M (1987) Why local self-sufficiency? [Naze Ima Chiiki-jikyu ka]. In: National Consumer Affairs Center of Japan (ed) Regional self-sufficiency and the logic of agriculture: socioeconomics for survival [Chiiki-jikyu to No no Ronri: Seizon no tame no Shakai-keizai-gaku]. Gakuyo-shobo, Tokyo, pp 1–25. [in Japanese] Yamashita Y (2008) Practical folklore [Jissen no Minzoku-gaku]. Nosan-gyoson-bunka-kyokai, Tokyo. [in Japanese]

Part III

Significance and Possibility of Locally Processed Foods and Community Businesses

Chapter 8

Value and Consumption Conditions of Locally Processed Food: Market Strategy of Tomato Juice Nobuyoshi Yasunaga

Abstract This study examines the value and consumption condition of locally processed food revealing consumers’ willingness to pay (WTP) for the attribute of tomato juice. Using market data and the data obtained from questionnaires, we quantitatively examined the consumption situation of urban residents, consumers’ WTP, and the relation to consumers’ attributes. As a result of this study, we obtained the following findings: First, we confirmed that the value of tomato juice in the mid-price range was “salt-free,” “organic,” “straight,” “produced in municipality,” in order. The value in the high-price range without additives was “organic,” “pesticide-free,” “sugar content 6.5,” “sugar content 8,” “size of bottle,” in order. Second, with respect to the relation to consumers’ attributes, we confirmed that the consumers’ age, household members have a negative influence on the selection of organic and local tomato juice. On the other hand, having children have a positive effect. Third, with regard to consumers’ loyalty, consumers have their specific preferences for tomato juice in view of “display that the tomato juice does not contain food additives,” “use of domestic tomatoes,” “lycopene content,” “feeling to the throat when you drink,” “sweetness.” The consumers also gained knowledge of agriculture and food through TV, internet, newspaper and magazine, and retail stores. We confirmed the consumers’ loyalty and amount of general knowledge of agriculture and food, frequency of locally processed tomato juices have a positive influence on consumers’ WTP. These findings indicate that it is critical for rural residents to consider the market strategy for women and young generation. Keywords Organic · Locally processed food · Tomato juice · Choice experiment · Willingness to pay · Consumers’ attributes

N. Yasunaga (*) Institute of Agricultural and Life Sciences, Academic Assembly, Shimane University, Matsue, Shimane, Japan e-mail: [email protected] © Springer Nature Singapore Pte Ltd. 2020 N. Yasunaga, N. Inoue (eds.), Farm and Rural Community Management in Less Favored Areas, New Frontiers in Regional Science: Asian Perspectives 44, https://doi.org/10.1007/978-981-15-7352-1_8

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Introduction

There has been growing concern in Japan about healthy and environmentally friendly food (e.g. organically produced food), particularly in urban areas. The “Act on Promotion of Organic Agriculture” and “Act on Promotion of Sixth Sector Industrialization” were established to promote diversification of primary producers. In addition to these acts, local food processing activities have increased with the aim of adding to the value of agricultural products. However, it has not necessarily been the case that local producers manufacture processed foods based on consumers’ tastes or preferences. In our previous survey on actual conditions in rural areas, locally processed products were not necessarily of good enough quality to meet the needs of urban residents. It is important to address the differences between the needs of urban residents and the supply of locally processed foods. Previous studies such as Kurihara (2002), Ishiishikawa and Yamamoto (2007), Nakamura et al. (2010) have limitedly examined consumer preference for locally processed food particularly in Japan, while many studies on consumer preferences for agricultural products such as fresh produce have been widely done. Many examined consumer preferences and consumers’ willingness to pay for product attributes of locally processed foods such as Meas et al. (2015), Hu et al. (2009, 2012), James et al. (2009), Kim et al. (2008), Adams and Salois (2010), Yoe and Tong (2009), Mtimet and Albisu (2006), Giraud et al. (2005), Brown (2003), Loureiro and Hine (2002), Brooker and Eastwood (1989). However, extensive examination of consumer preferences in view of differences in the choice of product attributes corresponding to price level has not been done. In addition, few studies have been done to investigate how different the effects of consumer attributes at the different price levels are. In this paper, we quantitatively examine the value consumers place on locally and organically produced food, the relationship between price range, and consumer preferences by using data on price and attributes obtained from urban markets, and stated preference data obtained from urban residents’ responses to a questionnaire. The next section illustrates the production condition of tomato and tomato juice in Japan. The third section is a description of the framework, methodology, survey, and experimental design. Subsequently, we report the results from the survey based on the conjoint analysis. The final section is a discussion of the implications on the marketing of locally processed food.

8.2 8.2.1

Production of Tomato and Tomato Juice in Rural Areas Production of Tomato and Tomato Juices

Table 8.1 shows the tomato juice production in Japan. The shipping amount of tomato to be eaten raw has been increasing mainly in Hokkaido, Chugoku, Kyushu, and Okinawa region. Tomato has been selected as the crop for regional development

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Table 8.1 Shipping trend of tomato

Japan Hokkaido Tohoku Hokuriku Kanto, Tosan Tokai Kinki Chugoku Shikoku Kyushu Okinawa

Tomatoes to be eaten raw Annual production Change rate (%) 2010 2015 2010–2015 571,200 613,300 7.4 42,300 53,800 27.2 57,700 62,300 8.0 12,300 13,800 12.2 160,200 156,900
2.1 84,200 80,700
4.2 22,400 21,600
3.6 17,500 19,600 12.0 18,500 18,500 0.0 154,100 183,300 18.9 2110 3060 45.0

Tomatoes to be processed Annual production Change rate (%) 2010 2015 2010–2015 40,600.0 35,800.0
11.8 2480.0 2440.0
1.6 7090.0 3830.0
46.0 1410.0 1180.0
16.3 27,500.0 26,800.0
2.5 1600.0 1090.0
31.9 53.0 99.0 86.8 35.0 67.0 91.4 92.0 84.0
8.7 294.0 190.0
35.4 16.0 17.0 6.3

Unit: ton Source: The Ministry of Agriculture, Forestry and Fisheries. Crop survey (vegetables) Unit: thousand ton 180 160 140 100

60

61

120

9 35

80

60

44

60 40

53

64

98

94

68

66

1990

1993

104

100

76

75

20 0 1975

1998

Tomato mix juice

2003

2012

2013

2014

Tomato juice

Fig. 8.1 Production trend of tomato juices. Source: The survey of horticultural crop division of Ministry of Agriculture, Forestry and Fisheries. The value of 2013, 2014 was surveyed by Japanese inspection association of seasoning, vegetables, and beverages

in many municipalities. And it is also one of the crops that new entrants introduced in their farms. On the other hand, the shipping amount of tomatoes for processing has been totally decreasing except in Kinki and Chugoku region. To deal with low-end user and the consumers who want to use PET bottle, manufactures of tomato juice have changed the processing way to use the tomatoes to be concentrated. In this process, the utilization of domestic tomatoes for processing has been falling. This problem can also be confirmed in Fig. 8.1.

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Figure 8.1 shows the production trend of tomato juice. Production of tomato juice in Japan has been in a saturation state in recent years. On the other hand, tomato mix juice that contains vegetables soup has been increasing. Diversification of vegetable beverage is considered as the factor. In general, many farmers make a contract with major enterprises for the tomato production for processing. Aging of farmers makes this contract difficult. Furthermore, it is costly to use domestic tomato as a material for processing. Major enterprises have become to use the tomatoes grown in foreign countries. As a result, lack of domestic tomatoes causes the increase of use of the foreign tomatoes. Japanese farmers face major problems such as corresponding to the aging of farmers, lack of successors, promotion of mechanization, and expansion of farm scale.

8.2.2

Price Distribution of Tomato Juices

Figure 8.2 shows the price distribution of tomato juice. It indicates price range of tomato juices. The samples are obtained by research in the tomato juice sold in retail stores, mainly department stores, in Tokyo metropolitan area from December 2016 to June 2017. In order to compare the different volumes of tomato juices, we calculated unit prices (sales price per 180 ml). Unit prices of tomato juices were mainly distributed from 100 yen to 150 yen. The prices of locally produced tomato juice that displayed the “name of region” are found in the range of 100 yen to 150 yen and more.

Market research Preliminary Research （e.g. Shimane Agricultural Research Center） August, September 2015

Hearing Investigation (Yasaka cooperative farm) November 2016

Market Research （Retail store in Tokyo and other areas）

November 2016 to June 2017

Fig. 8.2 Investigation summary in this study

Research for consumers Hypothesis formulation (Profile Design) March to June 2017

Consumer research （WEB research） June 2017

Analysis of consumer preferences July 2017∼ March 2019

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Hypothesis in this Study Definition of Tomato Juices

The Ministry of Agriculture, Forestry and Fisheries in Japan defined processed tomato products using Japanese Agricultural Standards. Tomato juice is defined as one containing whole crushed and squeezed tomatoes or one where the seed and skin have been removed. In this study, we refer to this method of processing juice as “straight.” Juice is also defined as that which has been to the state of juice by diluting concentrated tomato juice. In this study, we call this method of processing juice “from concentrate.” In addition, among the aforementioned juices, those containing salt are also included. Tomato juice including food additives except salt is defined as tomato mix juice by the Japanese Agricultural Standards. Including mixed juices makes it difficult to realistically capture tomato juice because mixed juice products are becoming more diverse. In this study, tomato mix juices were not included in our analysis. Considering the above points and the previous study of Nagao and Yasunaga (2017), we finally define tomato juice as that which has been processed one from 100% juice, referred to as the “straight” processing method, or juice processed from “from concentrate,” both with or without salt.

8.3.2

Hypothesis

Research question of this study is how local producers can adopt the strategy to promote their products in saturated market. In addition, a few studies have been limitedly done to explore the consumer preferences for locally processed food. With regard to production of locally processed food, we defined the “local” as an area that produces tomatoes for juice, or ones that are regionally processed by local companies or farmers. We incorporated both cases into our framework. Under the aforementioned definition, we consider the consumer choice model of tomato juice. Hypothesis 1: The strength of consumer preference for tomato juice is dependent on the attributes of products, e.g. national brand, organic/environmentally friendly farming, production area, “salt added” or not, “straight” or “concentrated and reduce,” material of “container,” e.g. bottle and can, etc. Consumer preferences are influenced by differences in price level, such as mid and high level. According to our market research conducted in Tokyo in 2016–2017, these attributes vary depending on price range. In particular, production area, degree of sugar content, and internal capacity can be important attributes in high-price range (more expensive tomato juice without food additives). Hypothesis 2: The attributes of consumer affect the preference of the locally processed tomato juice.

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Consumer attributes, e.g. gender, age, household income, household member, and whether the consumer have children, have an influence on the choice of locally processed tomato juice. Hypothesis 3: Consumers have unique attributes in addition to those in hypothesis 2. (3-a) A tendency exists that consumer who buys tomato juice with specific product attributes will continue to prefer to buy tomato juice with almost the same attributes than others. Therefore, the tendency also affects frequency in buying tomato juice with same specific product attributes. (3-b) The consumer who has special preferences with tomato juice has a strong tendency (i.e. loyalty). (3-c) The consumer who has more knowledge concerning agriculture and foodrelated regions has motivation to choose better food products. Therefore, they prefer to choose locally produced tomato juice. From the above, frequency of tomato juice consumption, consumer loyalty to tomato juices, and knowledge of agriculture and food have an influence on the choice of locally processed tomato juice.

8.3.3

Econometric Model

This study investigates the consumers’ preferences by applying a choice-based conjoint analysis based on random utility and the discrete choice model. The random utility function is expressed in Eq. (8.1). U ijn ¼ Z ijn  β þ eijn ,

ð8:1Þ

where β is a column vector of unknown parameters to be estimated and associated with product attributes expressed as Zij. ejn is an error term reflecting the randomness of this utility expression. Suppose that consumer i faces a choice alternative j (a type of tomato juice) in the nth choice situation (choice set) with attribute levels contained in the row vector Zij. The consumer chooses alternative j if the utility associated with alternative j is greater than that associated with the other alternatives in a given choice (purchase) situation. By comparing the random utilities as shown in (8.2) below, the probability that a consumer chooses one of the tomato juices in the nth situation presented in the questionnaire is as follows:
 Pijn ¼ P U ijn < U ikn ,

ð8:2Þ

where k ¼ 1, 2, . . ., J; k 6¼ j. When the error terms are assumed to be identically and independently distributed as type I extreme values, the probability expressed in Eq. (8.2) that a consumer selects one of the tomato juices in nth choice situation is assumed to follow the form of a conditional logit (CL) choice model:

8 Value and Consumption Conditions of Locally Processed Food: Market Strategy of. . .


 exp Z ijn  β

Pijn ¼ PJ

k¼1

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ð8:3Þ

exp ðZ ikn  βÞ

In addition, to consider the interaction effects among product attributes, the utility function can be expressed in the following form:
 U ijn ¼ Z jin  βp þ βpq  Z pðijnÞ  X qi þ eijn ,

ð8:4Þ

where Xqi represents one of the demographic factors, such as “number of consumer i’s household members,” and Zp(ijn) represents one of the product attributes. βp and βq denote the main effects, while βpq denotes the interaction effects.

8.3.4

Research Design for Investigating

Figure 8.3 shows the research flow conducted in this study. Based on the preliminary research, hearing investigation, and market researches, we generated the hypothesis on consumer preferences of tomato juice. Next, we created two questionnaire survey sheets for choice experiment. Using the survey sheets, we conducted the consumer research on June 2017. Table 8.2 shows the attributes of the conjoint experiment in this study. To assess the competitiveness of locally processed tomato juice (including those produced by large manufacturing companies) in the mid-price range, the tomato juices presented Number of tomato juice 16 14 12

10 8 6 4 2

Locally produced

No display of locally produced

600∼

550∼600

500∼550

450∼500

400∼450

350∼400

300∼350

250∼300

200∼250

150∼200

100∼150

50∼100

∼50

0

Yen / 180ml

Fig. 8.3 Price distribution of tomato juices collected in Tokyo. Note: Sample size is 101. This data was collected at department stores and antenna shops in Tokyo during the end of 2016 and the first half of 2017

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Table 8.2 Product attributes of tomato juice used in the choice experiment Mid-price range Attribute Level Producer 2

Description Local producer, e.g. food company, agricultural production cooperation Major manufacturing company, e.g. Kagome, Del Monte, etc.

High-price range Attribute Level Location 2

Producing area

2

Produced in a municipality Produced in a prefecture

Organic certification

2

Organic certification

2

JAS-certified organic food/Blank (non-display)

Sugar content

2

Processing method Salt

2

Straight/from concentrate

2

2

Container

2

Price (yen/180 ml)

5

Salt-free Salt-added Bottle Can 120, 140, 160, 180, 200

Size of bottle Price (yen)

5

Description Produced in a farm Produced in a municipality Produced in a prefecture JAS-certified organic food Pesticidefree Blank (non-display) Degree 8 (sweet) Degree 6.5 (slightly sweet) Degree 5 (sweetness usually) 500 ml, 720 ml 1000, 1100, 1200, 1300

Note: In high-price rage (high-quality tomato juice), it was assumed that processing method was straight, and salt was not be included based on the market research

in this survey were described using seven attributes: “national brand(major manufacturing company)/local producer,” “production area (in a prefecture/in a municipality),” “presence/absence of organic certification,” “method of processing (straight/from concentrate),” “salt-added/salt-free,” “container (bottle/can),” and “purchase price (YEN 120, 140, 160, 180, 200).” In addition, to consider the competition among local producers with products in the high-price range, we proposed different profiles, described by five attributes: “location of product (produced in farm/in municipality/in prefecture),” “presence/ absence of organic certification or pesticide-free,” “sugar content (5.0: unsweetened/ 6.5: slightly sweet/8.0: sweet),” “size of bottle (500 ml/720 ml),” and “purchase price (YEN 1000, 1100, 1200, 1300).” It should be noted that tomato juice in the high-price range is assumed not to have food additives, such as perfume, sweetener, and salt, and assumed to be 100% juice made by “straight” processing method.

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Q. Given the information provided above, which of the tomato juices would you purchase? Tomato juice A

Tomato juice B

Local producer (e.g. food company, agricultural production corporation）

Major manufacturing company (e.g. Kagome, Itoen, Delmonte)

100% Tomato grown in a municiparity

100% Tomato grown in a municiparity

JAS-certified organic food

Tomato juice A

Salt-added

Salt-added

Straight

From concentrate

Canned

Canned

180 yen

160 yen

Tomato juice B  □ I would not purchase either tomato juice

Fig. 8.4 Example of profile at mid-price range in the conjoint analysis Q. Given the information provided above, which of the tomato juices would you purchase? Locally produced tomato juice C

Locally produced tomato juice D

Straight, Salt-fee, Non-food additives

Straight, Salt-fee, Non-food additives

100% Tomato grown in a municiparity

Tomato produced in a farm

Pesticide-free

JAS-organic certification

Sugar content 8 (sweet)

Sugar content 6.5 (slightly sweet)

720ml

720ml

1200 yen

1000 yen

（167 yen per 100ml）

（139 yen per 100ml）

Tomato juice C

Tomato juice D  □ I would not purchase either tomato juice

Fig. 8.5 Example of profile at high-price range in the conjoint analysis

Twelve profiles were generated for each price range using the optFedrov() function of the AlgDesign package in R (statistical software), which were determined as a D-optimal solution, given the correlations among attributes (Aizaki and Nishimura 2007; Wheeler 2015). In our survey, 12  2 profiles were divided into two questionnaires in accordance with the method proposed by Aizaki (2006) to increase the response rate. The six pairs of profiles in the mid-price range and the six pairs of profiles in the high-price range were included in the questionnaire. Two questionnaires were randomly delivered to survey recipients. Figures 8.4 and 8.5 show examples of the profiles in the conjoint experiment. For each, respondents were first shown pictures of tomato juice. Next, respondents were asked to select whether they preferred juice 1, juice

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People who have drunk 100% tomato juice within the past one year

Mid-price range 6

Generated 12 Profiles High-price range Generated 12 Profiles

[6]

Qustionnaire 1 6＋(6)

Consumers (consumer monitors) 200

Qustionnaire 2 6＋[6]

Consumers (consumer monitors) 200

(6) 6

Fig. 8.6 Distribution method of questionnaires

2, or to indicate unwillingness to purchase either juice in the nth situation. The respondents were also asked to provide consumer attributes information such as frequency of daily consumption of tomato juice, knowledge of agriculture and food, age, household income, and number of household members. Figure 8.6 shows the method for distributing questionnaires. Data were gathered from respondents in the Tokyo Metropolitan Area by means of internet research. The questionnaires were delivered to the respondents, who were the consumer monitors of the internet research company, in June 2017. Each questionnaire was gathered by 200 samples in order for gender and age group to be almost equally distributed. As a whole, a sample of 400 respondents, who had drunk tomato juice in the previous 12 months, was gathered. Therefore, samples in the following choice experiment were 7200 ¼ 3  6  400 in each price range.

8.4

Consumption Situation of Tomato Juices by Urban Residents

Table 8.3 shows a summary of the respondents’ characteristics. Of the total usable sample (50% females), the average of household size was 2.61 people. Twenty percentage of households included children under 18 years old, 15% of households included children under 12 years old, and 11% of households included children under 5 years old. Household income was divided into three classes. Thirty-seven percentage of households earned a “low income,” which is less than 4 million yen/annum, 35% of households earned a “middle income,” which is 4 million yen to 6 million yen per annum, and 28% of households earned a “high income,” which is larger than 8 million yen per annum.

8 Value and Consumption Conditions of Locally Processed Food: Market Strategy of. . .

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Table 8.3 Summary of the respondents’ characteristics Variables Description Consumer attributes 1 Gender ¼1 if respondent is female ¼0 otherwise Age age of respondents Ageu40 ¼1 if age of respondent is less than 50 ¼0 otherwise Lincome household income: less than Yen 4,000,000 Mincome household income: Yen 4,000,000 to 8,000,000 Hincome household income: Larger than Yen 8,000,000 Nhm number of household members Childu5 ¼1 if respondent has children under 5 years old ¼0 otherwise Childu12 ¼1 if respondent has children under 12 years old ¼0 otherwise Childu18 ¼1 if respondents have children under 18 years old ¼0 otherwise Hmo40 ¼1 if respondent has household member over 40 years old ¼0 otherwise Hmo50 ¼1 if respondent has household member over 50 years old ¼0 otherwise Consumer attributes 2 Freq Frequency of drinking tomato juice (respondents drank within 1 month) Freqlocal1 Frequency of drinking locally produced tomato juice (respondents drank tomato juice within 1 year) Freqlocal2 Frequency of drinking locally produced tomato juice (respondents drank tomato juice within 1 month) Loyalty Ratio of persistence score to maximum persistence score (the score was assigned, 1 if almost not particular, 3 if stick well, 5 if strongly stick) Loyalty1 Appearance (color of tomato juice) Loyalty2 Feeling of drink going down your throat Loyalty3 Drinking without green smell Loyalty4 Having a sour taste Loyalty5 Having a sweet taste Loyalty6 Containing much lycopene than ordinary one Loyalty7 Made by domestic tomato (not foreign made) Loyalty8 Which region made the product in Japan Loyalty9 Displayed not containing food additives Loyalty10 Contents of container, e.g. bottle, can, pet bottle, paper pack Know Degree of knowledge of agriculture and food (ratio of checks to 19 questions on the knowledge)

Average

Standard deviation

0.50 49.63

0.50 16.10

0.50 0.37 0.35 0.28 2.61

0.50 0.48 0.48 0.45 1.88

0.11

0.31

0.15

0.36

0.20

0.40

0.55

0.50

0.45

0.50

0.49

0.50

0.68

0.47

0.40

0.49

0.49

0.20

0.53 0.63 0.51 0.44 0.59 0.66 0.74 0.51 0.78 0.57

0.50 0.48 0.50 0.50 0.49 0.48 0.44 0.50 0.41 0.50

0.13

0.09 (continued)

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Table 8.3 (continued) Variables Know1

Know2

Know3

Know4

Description ¼1 if respondent has formal knowledge from university, college, or vocational school ¼0 otherwise ¼1 if respondent has knowledge from media, such as TV, newspaper, and internet ¼ 0 otherwise ¼1 if respondent has knowledge from experience of engaging in farming ¼0 otherwise ¼1 if respondent has knowledge from word-of-mouth communication ¼0 otherwise

Average

Standard deviation

0.04

0.20

0.64

0.48

0.15

0.35

0.43

0.50

Note: The sample size is 400

8.4.1

Frequency of Drinking Tomato Juices

With regard to the frequency of drinking tomato juice, 49% of respondents had purchased tomato juice within the previous month. People, who drank ordinary 100% tomato juices within 1 year, drink more frequently than once a month. More specifically, there were many people who drink the tomato juice at breakfast. By aggregating the sample in each age group, the people who drink every day were mainly in their 40s or higher. There is a feature that younger generation drinks tomato juice at snack time or before going to bed. On the other hand, 68% of respondents had purchased local tomato juice within the previous 12 months, and 40% of respondents purchased local tomato juice within the previous month. People ordinary drink locally produced tomato juice once a month or less than. As a result of aggregating the sample in each age group, the people in their 70s drink the juice more frequently than once a month.

8.4.2

Loyalty of Consumers

Figure 8.7 shows consumers’ loyalty in view of consumers’ concern and persistence. The respondents were asked ten questions about their loyalty to tomato juice. The loyalty was mainly indicated by “displayed not containing food additives (loyalty9),” “made by domestic tomatoes (not foreign made) (loyalty7),” “containing more lycopene than ordinary juice (loyalty6),” and “feeling of drink going down your throat (loyalty2).” We also represented the degree of consumers’ loyalty to tomato juice (loyalty) as a proportion of persistence score for maximum persistence score obtained from the check for each ten questions. The score was assigned, one if

8 Value and Consumption Conditions of Locally Processed Food: Market Strategy of. . .

139 %

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

appearance (color of tomato juice) feeling of drink going down your throat drinking without green smell having a sour taste having a sweet taste containing much lycopene than ordinary one made by domestic tomato(not foreign made)

which region made the product in Japan displayed not containing food additives contents of container Strictly

well well

not particular

not at all

Fig. 8.7 Consumers’ loyalty (specific preferences) to tomato juice. Note 1: The figure represents the percentage of respondents’ single answers to the question of what they have concern or persistence to buy tomato juice. Note 2: Bottle, can, pet bottle, and paper pack were given as examples of the contents of container

almost not popular, three if there is good consumer loyalty, five if strongly preferred. Consumers have their specific preferences for tomato juice in view of “display that the tomato juice does not contain food additives,” “use of domestic tomatoes,” “lycopene content,” “feeling to the throat when you drink,” “sweetness.” By gender, women’s specific preferences for tomato juice were stronger than that of men. Young generation tends to worry about smell and sweetness.

8.4.3

Acquirement of Knowledge on Agriculture and Food

Figure 8.8 shows consumers’ knowledge concerning agricultural production and food products. Respondents were also asked a further nineteen questions regarding their experience of agriculture and urban-rural exchange, education regarding agriculture and food, and source how they get the information of agriculture and food. Four percentage of respondents had formal knowledge gained from a university, college, or vocational school (know 1); 64% of respondents had knowledge gained from media, such as TV, newspapers, and the internet (know 2); 15% of respondents had knowledge from experience of engaging in farming (know 3); and 43% of respondents had knowledge from a “word-of-mouth” communication (know 4). As a whole, we represented the degree of consumers’ knowledge on agriculture and food (know) as a proportion of response of check for each of the 19 questions. Knowledge of agricultural production and food were mainly obtained from “TV,” “internet,” “Newspaper and magazine,” “at store.” By gender, women gained knowledge on agricultural and food from more sources of information than men. People in their 70s gained knowledge from TV, newspaper and magazine more than younger people.

140

N. Yasunaga

0.0

20.0

40.0

% 60.0

growing crops on farm or on home garden from a person related to agriculture from relatives and friends at a food department at cooking class at an event for farming experience at farm inn classes in school professional school university symposium, seminar book newspaper and magazine public relations magazine TV direct mail (ads) on Internet, e.g. homepage and SNS others do not know

Fig. 8.8 Channels for acquiring knowledge of agriculture and food. Note 1: The figure represents the percentage of respondents’ multiple answers to the question of how they have primarily acquired knowledge concerning agricultural production and food products. Note 2: Classes in school represent classes in elementary, junior, and high school

8.5

Results and Discussion

Table 8.4 shows the results of the estimation of conditional logit models, with the parameters in the random utility function in the case of mid-price range. The models were significant at the 1% level according to the likelihood ratio test, and the model’s goodness of fit was indicated by McFadden’s pseudo-R2 value of 0.181. The results were also consistent with the expected coefficient signs and statistically significant. As expected, parameters associated with price exhibited a negative coefficient and were highly significant. Furthermore, the parameter associated with local producers exhibited a negative sign. Although it was not statistically significant, it was significant at the 1% level and the parameter exhibited a negative sign in main effect model which did not include interaction terms. This implies consumers are more likely to purchase national brand tomato juice, which is more well-known than that of local producers. These results are consistent with those of previous studies (Hu et al. 2012). Parameters associated with “organic certification” had a positive sign and were significant at the 1% level, as were “processing method (straight)” and “salt-free.” In particular, “salt-free” had the most influence on consumers’ preferences from the coefficient value. In this study, interaction effects were also examined. The interaction terms on “local” (local producer and producing area) and children being part of the household were statistically significant and indicated positive signs. The interaction term of

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Table 8.4 Parameter estimates of conditional logit model in mid-price range Variables Main effects Producer

Producing area

Organic certification Processing method

Salt-free Container Price (yen/180 ml) Interaction effects Local_Age Local_Household member Local_Children12 Local_Frequency2

Local_Knowledge Local_Loyalty5 Organic_Age Organic_High Income Organic_Frequency2

Organic_Knowledge

Organic_Loyalty7

Definition

Sign cond.

Coef.

SE

¼1 if a local producer, ¼0 otherwise (base: major manufacturing company) ¼1 if 100% tomato grown in a municipality, ¼0 otherwise (base: in a prefecture) ¼1 if organic certification is displayed, ¼0 otherwise ¼1 if way of processing is straight, ¼0 otherwise (base: from concentrate) ¼1 if salt is not added, ¼0 otherwise (base: salt added) ¼1 if container is bottle, ¼0 otherwise (base: can) 120, 140, 160, 180, 200





0.216

0.211

+

0.102

0.064

*

+

0.332

0.193

**

+

0.202

0.071

***

+

0.991

0.073

***

+

0.042

0.068





0.009

0.001

***

?



0.005
0.074

0.004 0.032

***

+

0.309

0.171

**

+

0.360

0.113

***

+

1.448

0.620

***

+

0.231

0.107

**

? +


0.010 0.281

0.003 0.117

*** ***

+

0.290

0.111

***

+

1.435

0.628

**

+

0.514

0.121

***

400 7200
2159 956

***

Producer  age Producer  nhm (number of household members) Producer  childu12 (having children under 12 years old) Producer  freqlocal2 (frequency of drinking locally produced tomato juice) Producer  know (having knowledge about agriculture and food) Producer  loyalty5 (stick to "having a sweet taste") Organic certification  age Organic certification  hincome (high income) Organic certification  freqlocal2 (frequency of drinking locally produced tomato juice) Organic certification  know (having knowledge about agriculture and food) Organic certification  loyalty7 (stick about “made by domestic tomato”)

Number of respondents Number of observations Log-likelihood Log-likelihood ratio test statistic χ2(19)

(continued)

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Table 8.4 (continued) Variables Definition McFadden’s Pseudo-R2

Sign cond.

Coef. 0.181

SE

Note 1: *, **, and *** indicate that variables are significant at the 10%, 5%, and 1% levels, respectively Note 2: One-sided test was applied when the sign condition was positive or negative. Otherwise, two-sided test was applied

“local producer” and “frequency of local tomato juice” (“freqlocal2”) and “organic certification” and freqlocal2 was statistically significant, with a positive sign. Moreover, the interaction term of “organic certification” and “high income” was significant, with a positive sign. On the other hand, the coefficients of the interaction terms of “producer” and “number of household member” had negative values. This suggests that consumer with larger family tends to prefer national brands. In addition, the coefficients of the interaction terms of “organic” and “age” and “producer” and “age” had negative values. This implies that younger consumers are more likely to purchase local and organic products. From the results of the estimated coefficients, consumers place value on “saltfree,” “organic certification,” and “straight” in this order. In particular, consumers are more likely to purchase salt-free tomato juice, and they do not place value on local products compared to national brands, such as Kagome, Ito En, and Del Monte. The older they are, the less likely they are to purchase tomato juice with an organic certification. Consumers are more likely to have a WTP for “organic certification” and “local producer” if they have recently purchased locally produced tomato juice, for example, in the last month, and if they have sufficient knowledge of food and agriculture. Table 8.5 shows the results of the estimation of conditional logit models and the parameters in the random utility function on locally produced tomato juice, in the case of the high-price range. The model was significant at the 1% level according to the likelihood ratio test, and they exhibited a reasonable goodness of fit, as indicated by McFadden’s pseudo-R2 value of 0.092. Location variables (“produced in a municipality” and “produced in a farm”) were not significant. This implies that consumers do not place value on “range of local area” with respect to the comparison between local products. On the other hand, “organic certification” and “pesticidefree” indicated positive signs and were significant at the 1% level. Additionally, the sugar content variables, e.g. “6.5 (slightly sweet)” and “8.0 (sweet),” had positive signs and were significant at the 1% and 5% levels, respectively. The interaction term of “location1” and “having children” was statistically significant at the 1% level. The interaction terms of “organic certification” and “gender (female)” and “organic certification” and “having children” were significant at the 10% and 1% levels, respectively. The difference in gender has an influence on consumers’ preferences in terms of health consideration. The interaction terms of “location1” and “age” and “location1” and “low income” had negative coefficients and were significant at the 1% or 5% levels, respectively. This suggests that age and income influence on the choice of quality of tomato juice.

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Table 8.5 Parameter estimates of conditional logit model in high-price range Variables Main effects Location1 Location2 Pesticide-free Organic certification Sugar content 6.5 Sugar content 8.0 Size of bottle Price(yen) Interaction effects Local_Age Local_Low Income Local_Children18 Local_Freqlocal2

Local_Knowledge

Local_Loyalty8

Organic_Gender Organic_Age Organic_Low Income Organic_Children18

Organic_Household member Organic_Freqlocal2

Organic_Knowledge

Definition

Sign cond.

¼1 if 100% tomato produced in a municipality, ¼0 otherwise ¼1 if 100% tomato produced on a farm, ¼0 otherwise ¼1 if pesticide-free is displayed, ¼0 otherwise ¼1 if JAS organic certification is displayed, ¼0 otherwise ¼1 if sugar content is 6.5 (slightly sweet), ¼0 otherwise ¼1 if sugar content is 8.0 (sweet), ¼0 otherwise 500 ml, 720 ml 1000, 1100, 1200, 1300

+

0.071

0.263

+


0.055

0.071

+

0.394

0.083

***

+

0.569

0.246

**

+

0.251

0.081

***

+

0.146

0.080

**

+


0.002
0.001

0.000 0.000

*** ***

?



0.018
0.290

0.005 0.142

*** **

+

0.436

0.183

***

+

0.312

0.142

**

+

2.355

0.809

***

+

0.321

0.138

***

+

0.168

0.119

*

?



0.017
0.262

0.004 0.125

*** **

+

0.481

0.180

***





0.121

0.039

***

+

0.368

0.123

***

+

2.745

0.704

***

Location1  age Location1  lincome (low income) Location1  childu18 (having children under 18 years old) Location1  freqlocal2 (frequency of drinking locally produced tomato juice) Location1  know (having knowledge about agriculture and food) Location1  loyalty8 (stick to “which region made the product in Japan”) Organic certification  gender (female) Organic certification  age Organic certification  lincome (low income) Organic certification  childu18 (having children under 18 years old) Organic certification  nhm (number of household members) Organic certification  freqlocal2 (frequency of drinking locally produced tomato juice) Organic certification  know (having knowledge about agriculture and food)

Coef.

SE

(continued)

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N. Yasunaga

Table 8.5 (continued) Variables Organic_Loyalty7

Definition Organic certification  loyalty7 (stick to “made by domestic tomato”)

Number of respondents Number of observations Log-likelihood Log-likelihood ratio test statistic χ2(23) McFadden's Pseudo-R2

Sign cond. +

Coef. 0.714

400 7200
2395 484 0.092

SE 0.138

***

***

Note 1: *, **, and *** indicate that variables are significant at the 10%, 5%, and 1% levels, respectively Note 2: One-sided test was applied when the sign condition was positive or negative. Otherwise, two-sided test was applied

The interaction terms of “location1” and “freqlocal2,” “organic certification” and “freqlocal2,” “location1” and “knowledge of agriculture and food,” and “organic certification” and “knowledge of agriculture and food” had positive signs and were statistically significant at 5% or 1% levels. This implies that consumers’ wealth of knowledge concerning locally produced tomato juice and other local foods positively influence on the choice of quality of tomato juice. The estimated coefficients indicate that younger consumers with a low income are not likely to have the WTP for high-quality, locally processed tomato juice. Female consumers with children, who have a general knowledge of agriculture and food, are more likely to value locally produced tomato juice. Organic certification is considered the most valuable element by consumers, particularly for high-quality tomato juice. However, consumers might place value on sufficiently sweet, but slightly sweet juice.

8.6

Conclusions

This study examined consumer preference for locally processed tomato juice under the hypothesis that competitiveness differs by price range. With regard to hypothesis 1, we confirmed that the value of tomato juice in the mid-price range is “salt-free,” “organic,” “straight,” “produced in municipality,” in order. The value in the high-price range with non-food additives is “organic,” “pesticide-free,” “sugar content 6.5,” “sugar content 8,” “size of bottle,” in order. The degree of environmentally friendly agriculture has a positive effect on consumer preference in the mid-price range, although respondents are more likely to choose tomato juice of a national brand rather than locally produced juice. However, having children and being young evaluate “local” (i.e. local producer, location) more positively.

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In the case of the high-price range, consumers were not willing to pay for processed foods produced in a municipality. However, consumer attributes such as being female and having children have a positive influence on the evaluation of “local.” We also confirmed that the degree of environmentally friendly agriculture has a positive influence on consumers’ preference in the high-price range. Tomato juices labeled as “organic” and “slightly sweet” are evaluated more highly than those labeled as “pesticide-free” and “sweet.” Furthermore, we also clarified the influence of drinking locally processed juice, consumers’ knowledge, and consumers’ loyalty to tomato juice in both price levels. These findings indicate that it is critical to match the supply of locally processed food in each price range, and the needs of urban residents, who are younger, female, and have children. Although in this study preferences are revealed more clearly, to some extent, more research is needed. Our research was carried out in Tokyo and further research including other areas would be of value to the field of consumer analysis. In addition, another limitation of this study is that the research was carried out using the stated preference approach, which presents a hypothetical situation to respondents, in a conjoint framework. It is difficult to include a large number of attributes in the hypothetical situation. Further analysis considering respondents’ real consumer behavior is needed. To examine the market of local products in more depth, we need to research the matching characteristics between local producers and consumers who have purchased from them. A further study of these points should be conducted. Acknowledgement The author thanks the Faculty of Life and Environmental Life Sciences in Shimane University for financial support in this study.

References Adams DC, Salois MJ (2010) Local versus organic: a turn in consumer preferences and willingnessto-pay. Renew Agric Food Syst 25(4):331–341 Aizaki H (2006) Analysis of the impact of others on household cooperative intention to collect household food waste. Agric Inf Res 15(1):1–14 Aizaki H, Nishimura K (2007) Introduction to choice experiment using R. Tech Rep Natl Inst Rural Eng 206:151–168 Brooker JR, Eastwood DB (1989) Using state logos to increase purchases of selected food products. J Food Distrib Res 20(1):175–183 Brown C (2003) Consumers’ preferences for locally produced food: a study in southeast Missouri. Am J Alternat Agric 18(4):213–224 Giraud KL, Bond CA, Bond JJ (2005) Consumer preferences for locally made specialty food products across Northern New England. Agric Resour Econ Rev 34(2):204–216 Hu W, Woods T, Bastin S (2009) Consumer acceptance and willingness to pay for blueberry products with nonconventional attributes. J Agric Appl Econ 41(1):47–60 Hu W, Batte MT, Woods T, Ernst S (2012) Consumer preferences for local production and other value-added label claims for a processed food product. Eur Rev Agric Econ 39(3):489–510

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Ishiishikawa H, Yamamoto K (2007) Consumer preference for Tofu incorporating tasting into conjoint analysis. Jpn J Farm Manage 45(2):79–83 James JS, Rickard BJ, Rossman WJ (2009) Product differentiation and market segmentation in applesauce: using a choice experiment to assess the value of organic, local, and nutrition attributes. Agric Resour Econ Rev 38(3):357–370 Kim D, Batte MT, Ernst S, Roe B (2008) Decomposing local: a conjoint analysis of locally produced foods. Am J Agric Econ 90(2):476–486 Kurihara Y (2002) An analysis of the consumer preferences for green tea attributes. Jpn J Farm Manage 40(2):77–82 Loureiro ML, Hine S (2002) Discovering niche markets: a comparison of consumer willingness to pay for local (Colorado Grown), organic, and GMO-free products. J Agric Appl Econ 34 (3):477–487 Meas T, Hu W, Batte MT, Woods TA, Ernst S (2015) Substitutes or complements? Consumer preference for local and organic food attributes. Am J Agric Econ 97(4):1044–1071 Mtimet N, Albisu LM (2006) Spanish wine consumer behavior: a choice experiment approach. Agribusiness 22(3):343–362 Nagao M, Yasunaga N (2017) Relation between consumer preferences and value added of organically and locally processed foods: a choice experiment study on tomato juice. Bull Fac Life Environ Sci Shimane Univ 22:27–32 Nakamura T, Yano Y, Maruyama A (2010) Japanese consumers’ evaluation of Aomori cloudy apple juice. Jpn J Farm Manage 48(2):11–23 Wheeler B (2015) Package ‘AlgDesign’. February 19 2015. https://cran.r-project.org/web/pack ages/AlgDesign/AlgDesign.pdf Yoe C, Tong C (2009) Organic or local? Investigating consumer preferences for fresh produce using a choice experiment with real economic incentives. Hort Sci 44(2):366–371

Chapter 9

Community Development Based on the Local Food Culture: A Case Study of Mindani District Yukiko Nakama

Abstract This chapter examines the role of local food culture in community development and identifying possibilities for promoting such culture as a regional resource by focusing on Yoshidacho Mindani District, in Shimane Prefecture in Japan. Specifically, this chapter documents the history of women’s organizations in the district, and their relation to food, studying the associated changes in rural areas that have happened through the transfer of knowledge about local dishes and cooking skills to the younger generations. This has proven to be a prominent aspect of inter-generational interaction in the region. The research identifies the effects of utilizing local food culture to promote interaction within the district, strengthen residents’ identity, promote interaction with outsiders, and present local dishes at regional events. The discussion notes that the creation of a common identity and the promotion of interaction with outsiders are related to the preservation of human resources. Additionally, it finds that increased interaction within the district and the use of local dishes in events can create employment opportunities. This helps in suggesting that the local food culture can create possibilities for resources to develop their regional communities. Keywords Local food culture · Community development · Regional resources · Women’s organizations

9.1

Introduction

Rural areas in Japan have recently been experiencing a decline in human density because of general depopulation, as well as an aging community. In order to revitalize rural areas, various development measures have been implemented Y. Nakama (*) Institute of Agricultural and Life Sciences, Academic Assembly, Shimane University, Matsue, Shimane, Japan e-mail: [email protected] © Springer Nature Singapore Pte Ltd. 2020 N. Yasunaga, N. Inoue (eds.), Farm and Rural Community Management in Less Favored Areas, New Frontiers in Regional Science: Asian Perspectives 44, https://doi.org/10.1007/978-981-15-7352-1_9

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throughout Japan. One of these measures is the use of “regional resources,” which includes farmland, agricultural resources, rural landscapes, and the traditional culture of the area, with these “resources” being used to promote the respective region, as other fixed, and often intangible features of regions that have enjoyed popularity over the years are now being threatened by modern lifestyles. These elements are often based on “social common capital” that is maintained by residents in rural areas, and which would be very difficult to restore once it is gone. These regional resources have an important role to play within agriculture as well as in the preservation of ecosystems, the maintenance of landscapes, the protection of clean water supplies, and other conservation efforts on land (Study Group on Regional Resources 2004). One prominent element of regional resources is the local food culture. In recent years, the local food culture has been used to promote regional development, as documented by numerous studies (Nakamura 2002; Sato 2011; Igarashi 2016; Nakamura 2018). For example, Igarashi (2016) notes that regional resources provide many possibilities to rural communities, such as in the development of products that use the local food culture and could possibly lead to the creation of new industries. Many studies have analyzed the role of regional resources in community development from an economic perspective, but the impact of rediscovering these and using the local food culture in rural areas stretches beyond economic prosperity. This chapter examines the role of the local food culture in community development, particularly focusing on how the mentality and behavior of residents and non-residents in rural areas change by the rediscovery and use of local food culture, and how it strongly affects community development. First, the way that how women’s organizations have been involved in food-related activities in recent Japanese history is discussed, as women’s organizations are now central to the promotion of the local food culture. Next, the changes that have been witnessed by rural communities in terms of use of local food culture are examined, focusing on Yoshidacho Mindani District, Yunnan city, Shimane prefecture, which is currently engaged in activities that make use of their local food culture. Finally, further possibilities for the promotion of local food culture as a regional resource are identified and discussed.

9.2 9.2.1

Women’s Organizations, and Food from Pre-War to Post-War Japan The History of Women’s Organizations in Japan

The Women’s Association (Fujin-kai) has been present in Japanese society since the end of the Russo-Japanese War, when chapters were established throughout the country for the purpose of training women. The nature of the local organization reflected the needs of the area, as all married women were required to participate.

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The wives of landlords and religious leaders, as well as those from families from a high social standing, were appointed as chairwomen and board members. There were four national women’s organizations in the pre-war and wartime: The Patriotic Women’s Association (Aikoku Fujin-kai), the Japanese Women’s Group Association (Dainihon Rengo Fujin-kai), the Japan’s National Defense Women’s Association (Dainihon Kokubo Fujin-kai), and the Japanese Women’s Association (Dainihon Fujin-kai). Each of the four national women’s associations consisted of women’s associations at the hamlet, village, town, county, city, and prefecture level (Fig. 9.1). The Patriotic Women’s Association, which was established with the support of the Ministry of Interior in 1901, was founded by Ioko Okumura, a social activist, in the wake of the North China incident in 1900, with the purpose of supporting bereaved families and wounded soldiers. However, membership was only open to upper- and middle-class women, such as wives of government officials, religious leaders, and landlords. The organization of working-class women came about in 1930s, with the establishment of the Japanese Women’s Group Association in 1931 as supported by the Ministry of Education. It aimed to promote women’s education and social services for all members participating in principle. Following the Manchurian Incident, which triggered a state of war with China, the Japan’s National Defense Women’s Association was set up to support war efforts under the sponsorship of the Ministry of the Army and the Ministry of the Navy in 1932. This role became further entrenched in national defense, following the Marco Polo Bridge Incident, which resulted in the Sino-Japanese war and, by extension, the Pacific War. This association, like the Japanese Women’s Group Association, was mainly made up of married women and included working-class women. At first, these organizations conducted activities separately, but with a protraction in the Wars, the Patriotic Women’s Association and the Japanese Women’s Group Association also began to support them. However, overlapping activities began to create friction between associations. Therefore, in 1942, three organizations were united as the Japanese Women’s Association. In June 1945, this new organization was dissolved. On August 15 of the same year, the Pacific War ended with Japan’s defeat, after which Japan remained under the occupation of General Headquarters (GHQ) until Fig. 9.1 The structure of Women’s association

National association Prefecture association County and city association Village and town association

Hamlet association

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April 1952. GHQ adopted “the suppression of militaristic nationalism” and “democratization” as its objectives. In response to policies introduced by GHQ, various measures were implemented in Japan, including constitutional amendments, labor reforms, and land reforms. Meanwhile, regional women’s associations (Chiiki Fujinkai) were formed across Japan following the War, retaining similar characteristics to previous pre-war and wartime organizations: chairwomen and board members were wives of landlords, religious leaders, and those with high social standing. With the rise in the rate of economic growth between 1950s and 1970s, the number of women participating in regional women’s associations decreased gradually due to population inflow from rural areas to cities and the socio-economic advancement of women. As a result, the operations of these organizations became difficult to maintain, and many were disbanded. However, some associations changed their structure to volunteer organizations, and began to conduct activities as key members in rural development.

9.2.2

Women’s Organizations, and Food from Pre-War to Post-War Japan

Women’s organizations conducted various activities in both pre-war period and during the war, but one of their primary activities was related to food as part of the Movement for Rural Reconstruction (No-san gyoson Keizai kosei undo) between 1932 and 1942. This movement was a response to the agricultural crises caused by the Great Depression, which drastically reduced the price of raw silk: a key export produced by Japanese farmers and sold to the USA. As prices for all agricultural products collapsed, the fall in the price of rice (Japan’s main agricultural commodity) was exaggerated by a good harvest in this period. The resulting recession of 1930 and 1931, which was called the Showa Agricultural Crisis had a devastating impact on many Japanese farmers. The Movement for Rural Reconstruction was a government-run national movement that aimed to revitalize damaged rural areas by the self-reliance of the people. The Japanese Government designated around 1000 municipalities as targets of the program every year. In 1932, when the movement started, 1463 municipalities were designated from across Japan (The Ministry of Agriculture and Forestry 1933). These towns and villages designed a project plan and implemented activities to redistribute land, rationalize labor use, improve rural finance, reorganize agricultural management, and improving home living, with the intention of promoting selfsufficiency and increasing production. In Shimane Prefecture, 23 villages were selected as designated in 1932. For example, Kakinoki Village in Kanoashi county (now Kakinoki, Yoshika town) formulated the Rural Economic Reconstruction Plan in 1933 and carried out various

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activities with its scope (see Chap. 7). Their activities, especially those related to food, were conducted mainly by women who were charged with household foodrelated tasks. These activities included supporting the self-supply of miso, soy sauce, and koji, which were widely consumed but produced on a small scale, as well as facilitating the improvement in the taste of pickles. They enhanced the technology used to produce miso, and achieved self-sufficiency, while the quality of the previously poor-quality pickles was improved by reviewing their production process. After these activities were evaluated, Kakinoki Village was commended as an example to follow in 1935 (Fumin Association 1935). However, with the continuation of the Pacific war, supplies and labor for agricultural production became scarce, leading to food shortages and worsening diets. Following Japan’s military defeat on August 15, 1945, GHQ sought to democratize the country, including through the imposition of land reforms from 1947 to 1950. As a result of land reforms, the farmland of various landlords was sold to peasants, who were then afforded the freedom to hold the farmland and cultivate it as they saw fit. However, many were smallholders and required state support. An example of such support is Cooperative extension service since 1948, which originated in the USA. It consisted of extension services for improving agriculture, extension services for improving home living, and youth development. Extension services for improving home living, however, mainly targeted women. The Life Improvement Division, which was established by the Ministry of Agriculture and Forestry, oversaw the extension services for improving home living. The Division’s primary purpose was to disseminate technical knowledge and promote independent farmers (Kangaeru nomin). This was set to be achieved by disseminating knowledge and techniques about clothing, food, and housing to farmers by home demonstration agents (which were mainly women who were based in the prefecture). However, it was decided that the development of independent farmers should be achieved through the activities of life improvement groups that should be formed by volunteers who wish to improve their lives. The Division also tried to implement rural democratization by fostering independent farmers. For this reason, the regional women’s association, which was a comprehensive organization that inherited pre-war character, would not be used as a group. Married women in each household had to participate in regional women’s associations. In associations with such forced-participation, individual independency would be lost. Therefore, the Division thought that the use of regional women’s associations was not an appropriate measure to foster independent farmers (Nakama and Uchida 2010). Shimane Prefecture introduced extension services for improving home living in 1951 through the Agricultural Improvement Division, which adopted a very different policy to that of the Ministry of Agriculture and Forestry. The purpose of the project was to spread technical knowledge through regional women’s associations. Shimane Prefecture chose this approach largely because the prefectural head was not associated with the Ministry of Agriculture and Forestry, and because of the feudal

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character had persisted in rural areas. The latter factor, in particular, was influenced by Shimane Prefecture’s unique arrangement between landlords and peasants. Generally, landlords rent farmland to peasants, who then pay their harvest as a rent, which was called the landlord system (Jinushi sei). This system was popular in Japan from pre-war years to around 1950. However, in Shimane Prefecture, landlords were leasing peasants their homes, land, farm, tools, and livestock in exchange for a proportion of their harvest and labor, rather than only leasing farmland. This relationship meant that the connection between landlords and peasants was extensive in nature, and peasants were practically enslaved to landlords. The system was called “Kabu kosaku,” a particular form of the landlord system (Shimane Prefecture 1967). This system was abolished by land reforms; however, the relationship and connections had persisted, and former landlords still had power in rural areas. Like the former landlords, their wives maintained power in regional women’s associations as chairwomen and board members. If some women wanted to create a new democratic organization, members of regional women’s associations fiercely opposed this because they feared the loss of their authority, leading to the outbreak of conflict in rural society. Based on this situation, the Agricultural Improvement Division decided that it would be difficult to create new democratic organizations as life improvement groups. Life improvement groups were formed in Shimane Prefecture mainly through regional women’s associations. These groups worked on various activities that were mainly related to food, including nutritional improvement and the preparation of preserved food. At that time, rural people possessed very little nutritional knowledge and had a nutritionally unbalanced diet. This was because it was not possible to allocate a lot of time to cooking during the agricultural season (especially rice planting and harvesting seasons), leading to the preparation of poor-quality meals, such as those that consist of only rice and pickles. Fatigue and poor nutrition led many people in rural areas to become ill soon after the farming season. In order to improve this situation, farmers were encouraged to preserve foods in order to guarantee nutritious meals. For example, the Kamichikuya women’s association from Matsue was selected as a model district of preserved food in Shimane Prefecture. It undertook activities such as making “furikake” (a flavorful food additive consisting of dried seaweed and salt), “shio konbu” (salty tangle), and “daizu soboro” (grounded soy beans seasoned with soy sauce and sugar), which are all eaten with rice. These nutritious foods reduced the number of people falling ill soon after the farming season. This resulted in the formation of a life improvement group, the “Wakaba kai,” based on the Kamichikuya women’s association (Nakama and Uchida 2009). Food-related activities conducted by life improvement groups thus led to regional development using the local food culture. In addition to that, preserved food that was made by life improvement groups was handed down as part of local cuisine.

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9.3

9.3.1

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Community Development Based on the Local Food Culture: A Case Study of Yoshidacho Mindani District in Yunnan City (Shimane Prefecture) Outline of Mindani District

Mindani is a rural district located in a valley, at an altitude of around 500 m. The district is composed of Mindani hamlet and Uyama hamlet, and it receives some of the heaviest snowfall in Shimane Prefecture. In the Edo period (from 1603 to 1867), Mindani administrative village (now the hamlet of Mindani) and Mindani-uyama administrative village (now the hamlet of Uyama) belonged to separate territories. The former was under the control of the Matsue territory, while the latter was under the control of Hirose territory. After the Meiji Restoration of 1868, both villages became a part of Shimane Prefecture. In 1875, Mindani and Mindani-uyama merged to become the village of Mindani, which later merged with the village of Yoshida in 1889. In 2004, Yunnan city was formed as the result of a merger between Yoshida village and five surrounding towns. Currently, Mindani district is a part of Yunnan city. The population of Mindani district is 170, spread across 55 households, with an old-age dependency ratio of 45.9% in 2017 (Hagiwara and Inoue 2019). The Yoshida village branch of the Japan’s National Defense Women’s Association was established in 1937. The hamlets of Yoshida village were incorporated as subordinate organizations (Aikyokai 1938). As previously mentioned, the Japan’s National Defense Women’s Association, together with two other organizations, was integrated into the Japanese Women’s Association and dissolved just before the end of the WWII. In Shimane Prefecture, just as in many other areas of Japan, a regional women’s association was formed immediately following the Wars. In 1946, a regional women’s association was formed in Yoshida village (Yoshida Village Women’s Association 1948). The branch of the Yoshida Village Women’s Association was set up in hamlets such as Mindani and Uyama. As was the case before and during the war, married women had to participate in the association. However, the population of Mindani district began to fall due to population outflows, a declining birthrate, and the socio-economic advancement of women. Thus, it became very difficult for the association to recruit participants from all the households. Therefore, around 2009, the two women’s associations in the Mindani district had undergone major changes. The Mindani branch changed its name to “Nadeshiko kai” and the Uyama branch changed its name to “Himawari kai,” also adopting a volunteer participation structure and changing from a self-cultivating form in order to promote deeper exchange between members.

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The Women’s Organization, and Food: Activities of the Wako Group

In addition to the women’s association, the “Wako Group” formed by volunteers from both Mindani and Uyama hamlets was set up in 1979 following the opening of the Agricultural School of Housewives (Shufu Nogyo Gakko) in each village of Iishi county. After the War, innovative agricultural techniques began to reduce the necessity of agricultural labor time. For example, the introduction of rice planting machines and harvesters vastly reduced agricultural labor. This allowed agricultural workers (mostly men) to take on other occupations and reduce their hours spent farming. Here, women were expected to play a role in agricultural production. The Agricultural School of Housewives was opened to train women how they could to play a part in agricultural and community promotional activities. In 1977, Yoshida village recruited participants for agriculture-related training at the Agricultural School of Housewives and about 20 female farmers living in the village participated. After 2 years of training, the Wako Group was created by volunteer women from Mindani and Uyama hamlets. The principal goal of the group activities was effectively using self-produced products items. In order to achieve this, the group jointly purchased vegetable seeds, preserved food items, and made special products such as dried vegetables, with the support of home demonstration agents. In 1987, a project to promote local cuisine was initiated in Shimane Prefecture. Yoshida village received the first designation, with the Wako Group members also being involved in the project. The project culminated in the publishing of “Taste of Yoshida” (Yoshida no Aji), a collection of local recipes. This book describes how to cook traditional dishes, how to process and preserve vegetables and wild plants, and how to cook food for events. Edited by members of the Wako Group, women of Sugido hamlet, and people from the village’s related departments, the book was distributed to every household in the village. Since then, the Wako Group began actively engaging in activities such as the production and sale of vegetables, and organically produced ham (Wako Group 1999). However, as the number of working members increased and the number of participants gradually decreased, the Wako Group was dissolved in 1999. After the group’s dissolution, food-related activities in Mindani district declined. Furthermore, the connection between the Mindani and Uyama hamlets began to weaken.

9.3.3

The Effects of Utilizing the Local Food Culture in Mindani District

After 2013, food-related activities began to grow in Mindani district, triggered by the closing of the Mindani Branch at Yoshida Elementary School in March 2012. The Mindani Branch school was located at the midpoint between Mindani and Uyama

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hamlets, and was considered as a symbol of the district. In fact, the loss of this school began to create a sense of crisis in the region. Therefore, a local management organization led by residents, the Mindani Promotion Council (Mindani chiku shinko kyogi-kai), was established in April 2014 to revitalize the district. They did this through lifelong learning projects and community promotion projects, based in the Mindani Exchange Center (formerly the Mindani Branch School Building). The nickname of the center is “Mu-min dani no gakko”; it means a place that everyone enjoys (Fig. 9.2). Another opportunity was presented through the establishment of a cooperation agreement with Shimane University in 2012, as negotiated by a Yunnan City Official. Specifically, it is a collaboration with Rural Survey, which is a course offered with Agricultural Economics course at Department of Agricultural and Forest Sciences, in Faculty of Life and Environmental Sciences, Shimane University. This course has been running since 2012 by four teachers, mainly for second-year students. In this course, students form a group that represents their interests, and then plan and conduct field surveys throughout the year, finally completing a report at the end of the semester. In the first year, there was only one group (the community marketing group): but since 2013, more groups have been conducting surveys in the district (Hagiwara and Inoue 2019). From 2013 to 2019, a local food culture group has conducted research in the district. The activities related

Fig. 9.2 The Mindani Exchange Center

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to food in Mindani district were resumed by the joint activities of local women and this local food culture group. The activities of the local food culture group can be divided into the rediscovery of the local food culture, the reproduction of the local dishes, and the preservation of local food culture. The rediscovery of information on the local food culture in Mindani district was done, specifically by reviewing the “Taste of Yoshida” recipe book. At the same time, the group established that the book was rarely being used within the district because of the insufficient information in it, with some listed dishes being vague about the required quantities and cooking methods. Furthermore, since no pictures of the finished dishes were included, there was no way to validate these. Therefore, it was necessary to reproduce the book with amendments. The reproduction of local dishes listed in the Taste of Yoshida was undertaken to better understand the required ingredients, quantities, and cooking methods, as well as to provide images of finished dishes. Another important objective was transferring the cooking techniques to the next generation in Mindani district by holding local cooking classes that were led by women from the former Wako Group. In 2013, dishes made by women from the district were eaten together with the local food culture group. Since 2014, local women and the local food culture group began cooking and tasting local dishes together. These cooking classes have been continuing until 2019, with around 20 people participating every year, including those from Mindani district and Shimane University. For example, 22 people participated in the local cooking class in 2019 (10 from Mindani district, 11 from Shimane University, and a Yunnan City Official). The local dishes that were cooked included baked mackerel sushi and boiled shiitake mushrooms. The baked mackerel, in particular, has a long history in Yunnan City. After cooking, the participants ate their local dishes and the dishes that they had brought from home, including pickles, cooked beans, and sweets. Shimane University students’ local dishes of “stamina natto” (from Tottori prefecture) and “kibi dango” (from Okayama prefecture) were introduced as well. As a result of the local cooking classes, the details of the recipes published in the Taste of Yoshida were improved, with a particular focus on describing the taste. Furthermore, cooking techniques were passed on to women in Mindani district. However, it was also considered necessary to transfer food culture, which is a valuable regional resource, to the next generation, rather than simply attempting to reproduce it. To this, it is vital to present knowledge through an accessible medium. Therefore, since 2015, the local food culture group has been studying other mean of inheriting the local food culture. The local food culture group first posted a recipe for a local dish on the homepage of the Mindani Exchange Center, with the goal of ensuring the continuation of the local food culture. The recipes were structured in a way that allowed local dishes to be made by first-time cooks. Furthermore, a staff member at the Mindani Exchange Center proposed the creation of a new collection of recipes which are unique to Mindani district in collaboration with the local food culture group. Therefore, in 2016, the local food culture group started to produce a book entitled “Taste of Mu-mindani” (Mu-mindani no aji, the name “Mu-mindani” being the nickname of

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Fig. 9.3 Comparison of “Taste of Yoshida” (left) and “Taste of Mu-mindani” (right)

the Mindani Exchange Center). The 2017 group created recipes for Taste of Mu-mindani, in which, in addition to listing ingredients and cooking methods, the recipes also included photos and step-by-step guidance. The new collection of recipes was completed in the spring of 2019 (Fig. 9.3), with the book consisting of five items: dishes made by the local cooking class, dishes that were exchanged between generations, dishes for events, miso dishes, and others. The recipe book includes “Mindani okowa” (a steamed dish of sticky rice with vegetables and chicken, seasoned with sugar and soy sauce), “Noppe jiru” (a thick soy-flavored soup with radish, carrots, and taro), and “Katara dango” (a steamed dish in which sweet bean paste is mixed into a dough made of rice flour and wrapped with leaves of the sartorius rose, which grows in the mountains). The book was distributed to each house and was sold for \300 at events that were held in the district. The local dishes in the book have since been served at the district’s events and at festivals outside Mindani. Activities aimed at rediscovering, reproducing, and ensuring the continuation of the local food culture have had a varied influence on Mindani district. First, the exchange between Mindani and Uyama hamlets was promoted through the local cooking class. The classes were initially held at a meeting house in Mindani hamlet but, there were many participants from the Mindani hamlet and only few from Uyama hamlet. However, since 2015, it is being held at the Mindani Exchange Center, and the number of participants from Uyama hamlet has gradually been increasing, thus promoting exchange between the two hamlets. Because of the

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Fig. 9.4 Effects of utilizing the local food culture

Interaction

Interaction

(in the district)

(with outsiders)

Creation of identity

Utilizing the local dishes in events

(residents)

interaction, local women from the two hamlets have been serving local dishes in various events together. Also, the interaction between the Wako Group’s generation (that are now in their 70s and 80s) and later generations is being fostered in a healthy way, which is essential for the survival of rural areas. Furthermore, in collaboration with Shimane University, the local people were given the opportunity to access regional resources. This is important because the cultural heritage and resources present within a region are often difficult to identify for people who have lived in the region for a long time. The features and attractions of the area are often rediscovered and utilized following the intervention of external people. The use of the local food culture affected not only local residents but also piqued the interest of the Shimane University students about Mindani. In fact, after the local cooking classes, some students have started participating in other events in the district as well. Utilizing the local food culture has had four inter-related effects: the promotion of interactions within the district, the development of residents’ identity, the promotion of interaction with outsiders, and the use of local dishes in events (Fig. 9.4). One of the primary requisites for rural community development is that individuals should inspire people living in rural areas. This is related to the development of residents’ identity, which raises their sense of pride in their hometown, and the promotion of external interaction that inspires a wider positive reputation. However, as previous studies note, it is also vital that the local food culture creates employment while promoting community development. Increased interaction in the district strengthens bonds between residents and encourages them to cooperate with each other. They also make products using local ingredients, thereby creating employment opportunities and, hopefully, limiting population outflow.

9.4

Conclusion

This chapter examines the role of the local food culture in community development. It first clarifies the history of women’s organizations (especially women’s associations), and their relation to food, before examining changes in rural areas following

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the reestablishment of local food culture, using the case of Mindani district as an example. The primary result is that the knowledge of local dishes and their cooking methods has been handed down to younger generations in the district through cooking classes and new recipe books. Furthermore, the interaction of different people, both within the region and externally, has been facilitated. External intervention has led people in Mindani district to rediscover the qualities of the area in which they live. The four inter-related effects of utilizing the local food culture can help develop the community, and foster a strong sense of belongingness and pride among the people. As mentioned in this chapter, the local food culture offers the possibility of becoming a regional resource for community development. It is possible to use this in other rural areas as well, with the following points to be considered before implementation: first, a thorough rediscovery and rearrangement of the local food culture in the area is important. Second, local people should protect the heritage of the local dishes and cook these at home. This factor is very important because the local food culture must remain “local” in nature. Finally, it is desirable to add external people in such activities that, use the local food culture, as in the case of Mindani district. As discussed previously, even if there are precious regional resources, many residents often find it difficult to identify them clearly. There is a likelihood that if there are no outsiders, no one would find the local food culture itself. This would be a great loss for not only community development, but also the preservation and inheritance of the local culture. People related to community development need to pay attention to the points mentioned above, and try to harness the strength of use the local food culture because one may assert that such interaction can bring a good influence in the rural areas and in the lives of the locals.

References Aikyokai (1938) The first series of Yoshida [Yoshida dai-issyu]: Yoshida village. [in Japanese] Fumin Association (1935) The second record of superior reconstructed rural villages [Dai-nikai yuryo kousei noson hyousyo-roku]. [in Japanese] Hagiwara H, Inoue N (2019) Goals and characteristics of continuous community-university cooperation activities in the same rural area. J Rural Prob 55(3):127–134. [in Japanese] Igarashi Y (2016) The possibility of food culture as a regional resource. J Japan Manag Diagn Assoc 16:88–94. [in Japanese] Nakama Y, Uchida K (2009) Promotion services for home living improvement and women’s associations in the postwar reform era: a case study on Shimane prefecture. J Rural Prob 45 (1):108–113. [in Japanese] Nakama Y, Uchida K (2010) Ideas and actual conditions of promotion services for home living improvement: a case study on Yamaguchi Prefecture. J Rural Prob 46(1):1–13. [in Japanese] Nakamura R (2018) Exploring the possibility of regional development by using a local food: Narezushi in Uchitomi area, Obama, Fukui prefecture. J Reg Fisher 58(3):120–127. [in Japanese] Nakamura T (2002) An analysis of the conditions and objectives of “agricultural business with local traditional food”: a case study of the Kita locale of Miyama town, Kyoto. J Rural Prob 38 (2):51–61. [in Japanese]

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Sato S (2011) A research related to regional revitalization by “food”: a case study of the regional specialties of Otsuki City, Yamanashi prefecture. J Japan Manag Diagn Assoc 11:110–116. [in Japanese] Shimane Prefecture (1967) The New History of Shimane Prefecture: Complete History 3 [Shinsyu Shimaneken-shi, tsu-shi-hen] [in Japanese] Study Group on Regional Resources (2004) Interim Report of the Study Group on Rural Regional Resources [Noson no chiiki-shigen ni kansuru kenkyu-kai chu-kan torimatome]. [in Japanese] Retrieved June 6, 2019, from http://www.maff.go.jp/j/study/other/tiiki_sigen/cyukan/ The Ministry of Agriculture and Forestry (1933) General Situation for Designated Municipalities of Rural, Mountain, and Fishing Villages and Towns [Nosan-gyoson keizai kousei keikaku juritsu choson gaikyo]. [in Japanese] Wako Group (1999) Green Wind [Midori no kaze]. [in Japanese] Yoshida Village Women’s Association (1948) Monthly Women [Fujin Geppo]. [in Japanese]

Chapter 10

Impact of Broad-Based Regional Management on Community Business Forms in Hilly and Mountainous Areas Nobuyoshi Yasunaga

Abstract This study examines the forms of community businesses resulting from the regional management aimed at the conservation of farmlands and rural societies in hilly and mountainous areas. It also examines the association among family farms, community-based farming, community businesses, and agricultural policy. Using a case study of hilly and mountainous areas, we obtained the following findings. First, a rural community business, covering multiple rural communities, was developed with the unique support of municipality staff. Second, direct payment subsidies from the central government play an important role in establishing the new business unit and promoting specialized local products. Third, establishing a broad-based relationship between the new organization and the existing rural community organizations is essential for sustaining the new organization. Fourth, despite the above three findings, securing external human resources for regional management remains a challenge. These results indicate that the management system depends on the official support of regional farming organizations. Keywords Community business · Establishing process · Business forms · Regional management · Interaction form · Agribusinesses

10.1

Introduction

Due to aging and depopulation, residents in hilly and mountainous areas find it difficult to maintain their living environment, for instance, conserving farmlands and purchasing daily necessities. Further, due to the lack of human resources, it is difficult for farmers to sell their products in both the local community and urban areas; this is worsened by their location in relation to high-consumption areas. N. Yasunaga (*) Institute of Agricultural and Life Sciences, Academic Assembly, Shimane University, Matsue, Shimane, Japan e-mail: [email protected] © Springer Nature Singapore Pte Ltd. 2020 N. Yasunaga, N. Inoue (eds.), Farm and Rural Community Management in Less Favored Areas, New Frontiers in Regional Science: Asian Perspectives 44, https://doi.org/10.1007/978-981-15-7352-1_10

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Therefore, residents have tried to look for ways to improve their living conditions by forming community-based businesses. In Japan, studies on community businesses in rural areas have become popular in recent years, such as Morishita et al. (2011), Yasunaga (2012), and Kobayashi (2017). Morishita et al. (2011) examined the factors that determine the establishment of a resident-led, community-based organization based on a case study of the KamiAkizu district in Tanabe city, Wakayama prefecture. The results show that the organizational structure for regional development was reorganized according to requirements and that non-profit organizations play a key role in establishing new organizations by expanding their network outside of the district. Morishita and Nakamura (2012) examined the contribution of non-profit organizations in the formation of farmers’ markets, based on two case studies of the Kami-Akizu district in Tanabe city and Miyama town, Kyoto prefecture. The results show that the non-profit organization directly affected the cooperation among residents and indirectly affected the launch of new businesses, such as food processing. Yasunaga (2012) proposed an analytical framework to capture factors that determine the growth of community businesses in hilly and mountainous areas, based on multiple case studies. The results show that higher the concentration of farmers, the higher the growth of community businesses leading to the development of new organizations. Kobayashi (2017) examined the development stage of community businesses, by analyzing wineries operated by non-profit organizations. The results show that community businesses develop in the following order: individual, social, economic, then economic and social integration. Further, it was pointed out that it is necessary for residents to share regional issues and deepen their understanding of their businesses to be successful. Newbery et al. (2013) focused on the performance of business association in rural settlements in the UK and quantitatively examined the factors affecting the members’ satisfaction and willingness to pay for the association’s survival. They clarified that group size, fair distribution of benefits, trust among local business, member’s trust, leadership, and service positively influence the satisfaction and willingness to pay, and that group size, members’ trust, and service also positively influence the willingness to pay. Many previous studies focused on the management of the business itself, but few have focused on differences in the formation process and the initiatives of regional management, especially in hilly and mountainous areas. Therefore, this study examines the differences in the formation process of community businesses and initiatives of regional management, along with the implications resulting from differences in hilly and mountainous areas. Regarding the initiatives, this study considers the usage of the direct payment system, relationships with external human resources and existing organizations, and the regional activity. Through these investigations, we also examined the management system for the conservation of rural resources, such as farmlands.

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Characteristics of Agribusinesses in Less-Favored Areas

We first describe the current situation of agribusiness in rural areas, focusing on lessfavored areas, in the west of Japan, such as Sanin, South Shikoku, and South Kyushu. These areas are designated as such by the Act on Temporary Measures concerning the Disaster Prevention and Development in the Areas with Special Soils. This act mainly designates the rural areas in the west of Japan. In addition, consumer expenditure is not high in these areas because of their distance from the Pacific Belt Zone, which has a high concentration of manufacturing industries supported by effective policy measures. Table 10.1 shows the number of agribusinesses in less-favored areas in Japan in 2015. The percentage of agribusiness is low in Shimane and Kochi compared to the whole country, except for Hokkaido. However, the proportion of farm product processing is high in the Shimane and Miyazaki prefectures, and direct sales to consumers are high in Kochi. Table 10.2 shows the annual sales of each agribusiness type from 2015 to 2018. Aside from the Kochi prefecture, the sales of tourist farms are low compared to the whole country. The annual sales of farm product processing and farm inns in the less-favored areas of Tottori, Shimane, and Kochi are low. However, farm product processing and farm restaurants in South Kyushu are relatively high. In contrast to other agribusinesses and regions, these areas may have taken advantage of the characteristics of less-favored areas. It is thus presumed that different measures are required for each region. In general, many young residents such as second and third sons of farm households in hilly and mountainous areas immigrated and the remaining farm household members are aged because of the low agricultural productivity, which, in turn, is due to the areas’ remote locations and land characteristics such as small parcels and decomposed granite soil. Moreover, to sustainably sell more products, more small farmers are needed. While there are a few young full-time farmers in hilly and mountainous areas, their network is limited. Without external support, it is difficult for them to develop their own businesses, such as farm inns and farm restaurants (which constitute green tourism in Japan), to complement their income. In this situation, the residents of rural communities tried to establish community businesses to improve their living environments. These businesses vary in activity and are helping increase local income by selling local agricultural products (e.g., businesses in Ogawa village in Nagano prefecture). In addition, the areas in which the businesses operate are becoming a hub for urban–rural exchange (e.g., Ajimu district in Usa city, Oita prefecture).

Number % Number % Number % Number % Number % Number % Number %

Farm product processing 262 1.4 462 2.3 262 1.7 518 2.0 456 1.2 24,186 1.8 25,068 1.8

Direct sales to consumers 2438 13.3 3417 17.2 3822 24.1 2944 11.2 4012 10.2 2,32,058 17.4 2,36,655 17.2

Rental and experience farms 16 0.1 33 0.2 14 0.1 43 0.2 44 0.1 3427 0.3 3723 0.3 Tourist farms 72 0.4 57 0.3 15 0.1 65 0.2 108 0.3 6306 0.5 6597 0.5

Farm inns 7 0.0 25 0.1 24 0.2 52 0.2 76 0.2 1531 0.1 1750 0.1

Farm restaurants 14 0.1 19 0.1 14 0.1 26 0.1 31 0.1 1164 0.1 1304 0.1

Source: The Ministry of Agriculture, Forestry and Fisheries. Census of Agriculture and Forestry 2015 Note 1: “%” represents a percentage of the total number of agribusinesses Note 2: Adding up all the percentages does not add up to one because there are farmers who have multiple types of agribusinesses

Whole country

Whole country (except Hokkaido)

Kagoshima

Miyazaki

Kochi

Shimane

Tottori

Farm-related agribusinesses 2567 14.0 3642 18.3 3948 24.9 3316 12.6 4327 11.0 2,45,787 18.4 2,51,073 18.2

Type of agribusinesses

Table 10.1 Agribusinesses, especially in the remote western areas of Japan

Exports 8 0.0 3 0.0 7 0.0 11 0.0 11 0.0 528 0.0 576 0.0

Others 23 0.1 26 0.1 20 0.1 35 0.1 39 0.1 1683 0.1 1836 0.1

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Shikoku Kochi Pref 5.9 9.0 9.1 9.0 9.0 11.9 35.1 35.4 1.5 2.3 2.6 2.3 8.7 7.4 6.8 7.0

South Kyushu Miyazaki Kagoshima Pref Pref 32.6 28.5 31.7 26.6 32.7 26.2 33.1 27.2 3.5 3.4 3.5 3.6 3.5 4.1 3.6 3.7 0.9 0.5 0.8 0.5 0.7 0.6 0.8 0.6 36.9 28.4 38.8 27.1 43.0 28.4 44.3 30.9

Source: The Ministry of Agriculture, Forestry and Fisheries Note: The average annual sales represent the average sales of the farmers sampled in the survey Unit: million yen

Farm restaurants

Farm inns

Tourist farms

Farm product processing

Research year 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018

Remote areas Sanin Tottori Shimane Pref Pref 8.5 4.5 7.7 5.4 8.4 5.4 8.6 8.3 4.0 7.5 3.9 6.3 4.1 5.9 3.9 5.7 0.6 1.4 0.4 1.3 0.5 1.0 0.6 1.3 7.1 19.6 14.8 22.8 21.5 25.9 21.7 25.0

Table 10.2 Average annual sales of agribusinesses by type, 2015–2018

Whole country, except Hokkaido 12.7 12.6 13.0 13.2 5.6 5.8 6.1 6.1 3.1 3.0 3.1 3.2 23.3 24.4 25.2 24.8

Whole country (Japan) 13.0 12.9 13.4 13.5 5.6 5.9 6.1 6.1 2.8 2.8 2.8 2.9 22.9 23.8 24.5 24.3

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Materials and Methods

10.3.1 Conceptual Framework This study defines the regional management of community business as local residents taking an initiative to carry out activities that enhance the sustainability of life in their area, by cooperating and collaborating to form business entities. A community business is defined as a business that enhances the sustainability of residents’ lives in an autonomous area. Figure 10.1 shows the conceptual framework of this study, based on the framework of Vasstrøm and Normann (2019). As a result of neo-endogenous development (Ray 2006; Shucksmith 2010), Vasstrøm and Normann proposed the socioeconomic outcomes of social capital development, problem-solving capacity, and innovativeness. In general, community business is initiatively established by residents. The growth is related to the elements of the LEADER philosophy: area-based local development strategies; bottom-up elaboration and implementation of strategies; local public–private partnerships: local action groups; integrated and multisectoral actions; innovation; cooperation; and networking (Ray 2000; Böcher 2008; Dargan and Shucksmith 2008; Bosworth et al. 2015). Considering these points, we developed the following analytical views (IF1 and IF2) to capture the community business forms and establishing process in broad-based regional management. Interaction Form 1 (IF1): Interaction of External Factors and Existing Organizations Community business growth depends on external factors, residents’ bottom-up activities, and cooperation among rural communities. The integration of external influences increases local potential. More concretely, the support of the local government is important as it provides institutional capacity for vitalization activities of the rural community. It is expected that there will be a process for using external elements, such as subsidies from the central government.

Establishing process of community businesses

Multiple rural communities

Community business enterprise

Interaction form 1

Fig. 10.1 Conceptual framework of this study

Business activity

Interaction form 2

Innovative activities

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Interaction Form 2 (IF2): Relations Among Business Units and Rural Groups Multiple or separable business units are required for regional management. This is related to the integrated and multi-sectoral actions in neo-endogenous development theory. Creating a new self-governing business unit, in line with the existing rural organization, is a challenge. Building relationships with existing businesses and rural groups is important; the new entity is expected to complement the existing groups.

10.3.2 Target Areas Figure 10.2 shows the target areas of this study. For the purpose of this study, we selected mountainous areas that are being considered for regional development and farmland conservation. The Yasaka autonomous region is a mountainous area with many farmlands, ranging from 200 to 500 m above sea level, with a population of 1342 (as of the 2015 census). Also known as Yasaka village (former municipality), it was created by a merger in August 1956. It consists of the Kitsuka and Yasugi districts. In 2005, Yasaka village was merged with Hamada city, becoming one of its autonomous regions. Paddy fields make up 92.2% (226 hectares) of total farmlands (245 hectares). This percentage is higher than that of the Shimane prefecture (85%) (2015 Census of Agriculture and Forestry, Agricultural Management Entities). The farmers have maintained their farmlands and communities mainly through rice farming. The Hida district is a mountainous area located at approximately 300 m above sea level. The district covers Hida village (former municipality), which was established Urban area of Matsue city （149,918）

Yasaka district in Hamada city Hida district in Yasugi city

（1,343）

（1,081）

Urban area of Hiroshima city （1,194,034）

Fig. 10.2 Target areas of this study. Note: the figures in parentheses indicate population (the units are people). The urban population represents the population at the old city level

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in 1887, as well as the Kajifukudome and Higashi Hida areas (East hida). Hida village was merged with Hirose town in 1955. In 2004, it was merged with Yasugi city and became an autonomous region, located in the south of Yasugi city. Paddy fields make up 94.5% (256 hectares) of total farmlands (271 hectares). This percentage is higher than that of the Shimane prefecture. Here too, the farmers have maintained their farmlands and communities mainly through rice farming. Table 10.3 shows the current situation of agribusinesses in the study areas in 2015. Compared to the Shimane prefecture, Yasaka district has a slightly higher share of farm-related, farm product processing, and direct-selling agribusinesses, and the Hida district has a slightly lower share of farm-related and food processing agribusinesses. Compared to Yasaka, Hida seems to be less diversified in terms of farm management.

10.4

Results and Discussion

10.4.1 Forming Process in the Yasaka District, Hamada City, Shimane Prefecture The former Yasaka village has 13 community-based farms. In the Yasaka autonomous region, after 7 years of discussion, five community-based farms are now cooperating with village farming corporations to conserve farmlands. As a starting point, stakeholders tried to understand the actual situation in the region and share opinions between the region and the local government office, with the intention of conserving livelihoods and farmlands, as suggested by the Ministry of Agriculture, Forestry and Fisheries. For this purpose, the staff of the Yasaka branch office in Hamada city and the Institute Center for the Study of Hilly and Mountainous Areas started to patrol the rural communities. It seems that there were two exchanges of opinions in each rural community with three visits in the morning, afternoon, and evening. Since then, the Yasaka branch office staff has continued to communicate closely with the residents. As a result of this active communication, the Cooperative Council of Community-Based Farming Organizations was established in 2015. This council is responsible for sharing information and awareness, creating a social system for farmland conservation, holding workshops, and broadening community agreements. After discussions, the council was tasked with branding Yasaka rice and organizing rice crop conversion. At the beginning of this task, rice was used as a return gift in the Furusato Nozei system, under which a tax reduction is given to taxpayers who donate to local municipalities. This led to the establishment of the General Incorporated Association, named Oku-Shimane Yasaka, which was tasked to lead the region into the next generation. The main aims of Oku-Shimane Yasaka are to convey the thoughts of producers to consumers, ascertain the needs of consumers, and communicate these needs to the producers so they can make the required agribusiness products. The company buys

Number % Number % Number %

Farm product processing 462 2.3 10 5.6 3 1.2

Direct sales to consumers 3,417 17.2 35 19.8 42 17.3

Rental and experience farms 33 0.2 2 1.1 0 0.0

Tourist farms 57 0.3 0 0.0 0 0.0

Source: The Ministry of Agriculture, Forestry and Fisheries. Census of Agriculture and Forestry 2015 Note: “%” represents a percentage of the total number of agribusinesses in agricultural management entities

Hida district (Yasugi city)

Yasaka district (Hamada city)

Shimane

Farm-related agribusinesses 3642 18.3 42 23.7 42 17.3

Table 10.3 Current situation of agribusinesses in the study areas, 2015 Farm inns 25 0.1 3 1.7 0 0.0

Farm restaurants 19 0.1 2 1.1 0 0.0

Exports 3 0.0 0 0.0 0 0.0

Others 26 0.1 1 0.6 0 0.0

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rice from farmers at a higher price than that at which the farmers sell to Japan Agricultural Cooperatives (JA). They then sell the rice to department stores in urban areas. There are plans to increase the volume of rice handled by Oku-Shimane Yasaka, given that the current volume handled is very low compared to the total volume handled in the Yasaka region. Therefore, JA and dealers outside the district play important roles in selling rice in this region. However, the main reason for Oku-Shimane Yasaka selling rice is to enhance people’s awareness regarding the Yasaka region and to foster residents’ pride in their region. Regarding the cooperation of regional agribusinesses, first, due to the low supply of labor, drone spraying has been implemented over the Yasaka region as part of joint pest control operations. In the past, the pest control of communal paddy rice fields to protect farmlands was carried out mainly by community-based farming organizations, but the aging of the population and the shortage of young farmers have made it difficult to continue with this method. The cooperation of the entire Yasaka autonomous region has led to a sense of awareness among residents to protect farmlands throughout the region. Second, community-based farming organizations are planning to provide weeding services to organic vegetable growers, based on the assumption that a weeding robot will perform the task three times a year. Third, residents are working on the processing of their farm products. Given that they consider rice as the most important crop to protect the farmlands, they planned the production of the following processed rice products: granola and rice flour bread in 2018; rice cakes, Doburoku (sake that is home-brewed), and Amazake (sweet mild sake) in 2019; and rice flour noodles in 2020. Fourth, residents are considering the inheritance of traditional culture by carrying out experiential exchange among communities. They are planning to hold the exchange activities, such as harvesting rice and making miso (fermented bean paste), more than 4 times a year. The aims of this initiative are to pass on the power of communication, pass on traditions within the region, promote the value of farm products through consumer exchange, and create a platform for exchange among the rural community. Regarding the promotion of the regional management, first, significant structural changes can be expected in 5–10 years because the average age of farmers is around 70 years, which is the age of retirement. Acquiring sufficient human capital is a challenge due to the aging of the workforce. This necessitates the recruitment of agricultural trainees. However, in recent years, it has proven difficult to attract non-residents to live and work in the region due to competition among municipalities—a result of depopulation in Japan. Second, the residents are trying to jointly purchase materials for the production and branding of rice in response to the decline in ordinary rice prices. About 15 ha of soybeans and 5 ha of buckwheat were planted as converted crops. However, the residents do not intend to increase the production of these crops further because of the associated need to control weeds—a task that does not accompany rice production. Third, residents are planning to collaborate in farming with the rural community by establishing a new company in response to the shortage of operators and board members in community-based farming organizations. Figure 10.3 shows the system for rural conservation and community planning. It illustrates the relationships among

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System of farmland conservation Company for rice sales Management of multiple communities

Oku-shimane Yasaka

Company for business New company

Council of vegetable farmers Union of animal meat processing Experience exchange

Yasaka branch of Hamada city

Council established by communitybased farmers （corporate meetings, youth committees）

Community-based farmers Direct payment from central government

System for community planning

Residents’ associations (multiple rural communities)

Fig. 10.3 Yasaka system for rural conservation and community planning. Note: the figure is based on interviews conducted in August 2019 in the Yasaka branch of Hyamada city

the existing residents’ community associations, community-based farmers, the cooperative council of community-based farmers, and farm-related agribusiness companies. The new company is expected to perform key operations in paddy rice fields, such as plowing, planting, harvesting, drone spraying, weed control, and planting centipede grass for reducing the burden of mowing. The cooperative council of community-based farmers is assumed to be responsible for grass mowing, water management, and coordination of farm duties and of farmers’ opinions within the community. Grass mowing and water management are also handled by association members. Young farmers have remained dedicated to the agricultural training programs that the municipality implements. In addition, they formed a network with other business entities to sustainably produce and sell their vegetables. This network is an example of cooperation between the new company and the council of vegetable producers. Fourth, one challenge is to empower the residents to communicate their regional history and traditional skills. They seek to find out how to carry forward their tradition through urban–rural exchanges, with a connection between local food and agriculture. To promote understanding of local agriculture, they aim to construct a visible relationship between urban consumers and local producers. In this regard, the Yasaka Labor Initiative and students of the Shimane Prefectural University and other universities outside Shimane prefecture studied the local food culture. However, this formal knowledge has not been fully utilized because of a lack of resources to analyze the results. Recruiting and developing staff for regional management remains a challenge because of the current lack of regional managers. The fifth, and final, point is the response to the heterogeneity of the rural community. While there is a general awareness that rice production is an important

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local industry, there exists a community construction aspect. Residents are polarized, with some wanting to hand over the responsibility of the community to the next generation and others wanting to retain it till the end of their generation. In discussions with youth groups in the council of community-based farmers, concerns from individual, intergenerational, and community perspectives were raised. From an individual perspective, young residents have a strong sense of personal burden because there are only a few of them, and they cannot undertake all work in their village because of their existing jobs. From the intergenerational perspective, since the parent generation is still active, information and tasks/responsibilities do not filter down to the younger generation. In addition, there is little contact between the generations, and therefore, there are no opportunities to discuss the future. From the community perspective, it was pointed out that the organization is not functioning efficiently. Although there are multiple farm production unions, cooperation with a shared purpose is nonexistent. In sum, the lack of consolidation and sharing of residents’ opinions remain noteworthy problems in the community.

10.4.2 Forming Process in the Hida District, Yasugi City, Shimane Prefecture The maintenance of rural societies has become a major concern due to depopulation and aging. Community development activities (community vitalization projects) have been implemented to bring the dreams and thoughts of residents into reality and ensure their region is maintained. The project has been carried out by young members of the community in consultation with the head of the community association. They started by using the local Vitalization Cooperator Institute (i.e., using I-turner, generally defined as a person who has immigrated from an urban area to the rural area in Japan, as a local vitalization cooperator), in 2015. At first, they distributed a questionnaire survey to the residents in each rural community. In addition, many workshops were conducted to collect the residents’ ideal vision, for the following year. Then, they narrowed down the collected data into 88 activity items. From this, they developed the “Hida area vision for 10 years” in March 2016. To realize the vision, The E-hida Company was established as a voluntary organization (regional management organization) in 2016. The organization was incorporated to make community development activities more sustainable (to keep their businesses running even if the generations change), increase consumers’ trust for the organization’s activities, and hold residents accountable for their actions. In addition, a joint-stock company allows for the development of many businesses without restrictions and allows residents who cannot directly participate in the company’s activities to take part in community development activities, by holding shares in the company. Thus, The E-hida Company Co., Ltd. was established, with the investment of residents, in March 2017. Based on the residents’ vision, The E-hida Company plays an active role in the entire Hida district via seven subcommittees: the General

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Processing farm products and branding local products Sending new residents as local vitalization cooperators

Rice, bread, ramen, etc.

Community business as a hub of multiple communities

Yasugi City support

Supply rice and wheat Switch for broad base Direct payment from central government

Multiple communities

Fig. 10.4 Hida system for rural conservation and community planning. Note: the figure is based on interviews conducted in 2019

Affairs Department, the Living Environment Department, the Hida Rice Project Department, the Hida Kitchen Department, the Hida Garden Department, the Regional Appeal Department, and the Settlement Promotion Department. Each committee is made up of about 80 residents in their 20s to 70s. Most of the members have different day jobs; therefore, they use their time after work and holidays to get involved in the community business. Promotional activities for rural development have been mainly conducted by The E-hida Company and residents. The company has conducted activities to promote the production of special local foods, increase in consumption of local foods, and exchange between urban and rural areas. The E-hida Company sells local rice as “Hida mai” as a return gift, in exchange for donations to Yasugi city, as part of the Furusato Nozei system. In addition, the company purchases local farmers’ rice and promotes it outside the region by cooperating with wholesale stores in Matsue city. The company collects and sorts the local rice, then negotiates with wholesale stores to sell it at a profit. To fully utilize the paddy fields and make locally processed food, the residents started to grow wheat in some areas to produce bread. The E-hida Company outsources the wheat processing to a neighboring company and sells the product. The E-hida Company also considered other processed foods, such as Hida ramen (using the suggestion of a miller to use ramen), vegetable dressing (carrot), and Udon (dried noodle made of local wheat flour). Figure 10.4 shows the system for rural conservation and community planning. In 2015, a woman (an I-turner) from the urban area of Kansai moved to the Hida area to coordinate promotional activities. She is active in conducting questionnaire surveys in rural communities, arranging workshops for residents across all generations, producing public relations magazines and creating Facebook posts, and establishing and running community business enterprises. A foundation, comprised of the elderly and residents who have been living in the district for a long time, supports the

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activities of I-turners and other external supporters who care about the Hida district. This background may be due to the fact that the residents have accepted migrants in the past. The I-turners were recruited by Yasugi city using the local vitalization cooperator program suggested by the Ministry of Internal Affairs and Communications. By using the Half Farmer, Half X institution (“Han nou han X” in Japanese), supported by the Shimane prefecture, it is possible for the I-turners to continue to live in the region even after the subsidy support by the local Vitalization Cooperator Institute has ended. Regarding the cooperation of regional agribusinesses, broad-based collaboration of community agreements, under the direct payment policy for hilly and mountainous areas, plays an important role in integrating communities and establishing new companies. Specifically, 13 rural communities in the district have entered into community agreements to maintain their farmlands and waterways and engage in community-based farming. However, the continuation of these activities is under threat due to the aging of the farm workforce. To effectively use the direct payment subsidies for activities of The E-hida Company, community agreements were reorganized and integrated into four agreements. The E-hida Company contributed to this integration of community agreements by conducting clerical work, such as preparing documents to apply for and receive subsidies from the central government. The company helps in collaboration with the rural communities to increase rice sales and the processing of farm products. This was not possible for residents under the old individual community agreements. In addition, there is a relationship between the agreements responsible for farmland and water management and The E-hida Company. To support the measures to improve the conservation of farmlands, water, and rural environments, the Nagata community in Hida began to plant moss phlox (“Shiba-zakura” in Japanese) to reduce the amount of mowing work in the ridges of paddy fields. Women in the community as well as Hida Elementary School students participated in planting. Since 2016, the community organization has been holding the Shiba-zakura Festival in collaboration with The E-hida Company. This festival has now become a large community event with over 1000 attendees. With respect to agribusiness in the community, the company began to receive work that had originally been outsourced to JA. In addition, The E-hida Company received contract agricultural work of seeds and seedlings from JA. This work accounts for a significant proportion of the company’s sales. To reduce the burden on farmers, the company uses small drones to spray pesticides. In addition to these agricultural activities, the company was involved in the development of the regional transportation system to cater for the residents’ needs; the development and sales of locally processed products, using local farm products (mainly rice and conversion crops); the implementation of urban–rural exchange tours, including farming experiences to spread the appeal of the region; and the U-turn and I-turn fairs held in urban areas, such as Osaka, to increase the number of immigrants. Regarding the promotion of the regional management, first, participating in community activities can be a challenge for all residents because of their engagement in other occupations, although the establishment of the company has increased the sense of responsibility among residents. The residents do not directly earn from

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participating in the company’s business activities but can get services concerning their living such as transportation for the elderly, diverse food supply, and multiple sales channels. Therefore, company activities mainly depend on the voluntary actions of committed residents. In addition, the president of The E-hida Company—an I-turner from Okayama—took over his wife’s family’s retail store to run his own business and opened a restaurant for the residents; therefore, it is unlikely that he has spare time to devote to additional activities. Second, it has been three years since the company was founded, but it has yet to pay out a dividend to shareholders. Instead, it has offered gift certificates based on the amount invested. At present, the company is mostly supported by residents in the area. In addition, raising funds from outside sources is difficult as most people are not aware of the Hida area. Third, some residents consider it a challenge to preserve the culture of the Hida district because of its variety of historical culture, such as the Kanayago Shrine, registered as a Japanese cultural heritage, Hana-taue (rice planting ceremony), Hida odori (Bon dance), and Hida daiko (Japanese drum). The urban–rural exchange activity was conducted in the former Higashi Hida Elementary School; however, because it was difficult to gather people from urban areas, it changed into an exchange with nearby residents. Regarding the experience of traditional local food, using the powder of sticky rice and bamboo leaves (sasa no ha), residents tried to conduct a serving-experience exchange activity by making “sasa-maki” (trap winding). In addition, to promote local food and exchange between rural and urban areas, the company started small market with Imai Bookstore in Tonomachi (Matsue castle town), Matsue city, by collaborating with Shimane University.

10.4.3 Discussion The local government and the direct payment policy play an important role in providing funds for establishing and running community businesses. In Yasaka district, one activity of Oku-Shimane Yasaka is to perform the administrative tasks required to receive subsidies. These subsidies are to be used for the conservation of farmlands, water, and the rural environment. They are also useful for maintaining sales activities (source: residents’ interviews). Community agreements were merged on the basis of the two former villages and the subsidies were effectively utilized for farmland conservation. In the case of the Hida district, The E-hida Company became a participant in the community agreements and hired new human resources to take on the administrative work for direct payment subsidies. Therefore, the subsidy led to a source of income for the clerical employees (newcomers) of The E-hida Company. The local government also performs leadership and facilitation tasks. In Yasaka city, the main employee (unit head of industry division) of the Yasaka branch of Hamada city, who is a native resident, was crucial in fostering cooperation among residents. In Hida city, the effective, broad-based use of direct payments was

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suggested by a younger resident, who is a U-turner and employee of the agricultural policy division of the Yasugi city. Regarding the interaction between community business units and rural groups, in Yasaka district, the consultation function (council of community-based farms) is separated from execution (Oku-Shimane Yasaka). No process exists to share the opinions of residents and identify a future vision for the district. Instead, the council of community-based farms performs these roles. Using the new company as a base, residents are looking for ways to conserve farmlands by collaborating with other organizations and companies, similar to the system in Hida. In Hida, while each rural community is based on the production of an agricultural product (i.e., rural communities are connected with territorial bonding), a broad-based system with The E-hida Company has been established so that communities who sign integrated community agreements can continue their farming activities. The relationship with JA cooperatives has also changed. Although Oku-Shimane Yasaka and The E-hida Company sell local rice, the sale amounts are limited. Therefore, JA cooperatives still act as a sales channel for agricultural products. The E-hida Company has also received contract agricultural work from JA. Thus, agricultural work and JA are important in the growth of community businesses in the study region in the early stages.

10.5

Conclusion

This study examined the differences in the forming process and forms of regional management, and future issue and possibility born from differences in hilly and mountainous areas. It also considers the usage of the direct payment system, relationships between external human resources and existing organizations, and the regional activity in broad-based farmland conservation systems. Our findings are as follows: First, a rural community business, covering multiple rural communities, was developed with the unique support of municipality staff. Second, direct payment subsidies from the central government were essential in establishing the new business and promoting specialized local products by integrating multiple communities. Third, constructing a broad-based relationship between the new organization and the existing rural community organizations was critical for sustaining the new organization. Fourth, despite the above three findings, securing external human resources for regional management remains a challenge. The residents in hilly and mountainous areas find it difficult to conduct agribusiness with people in urban areas because they lack human resources and are located in remote areas. Community businesses are expected to not only improve the lives of residents, but also earn money from external sources. To preserve the rural community and farmlands, it is necessary to develop broad-based regional management, with a balance between farm development and the management of existing local resources. It is also important to consider a balance between the community business and the existing residents’ businesses (i.e., constraints of regional activity time). To achieve this balance, community businesses can be used, but because of the limited

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human resources available to the community, business entities are isolated. Therefore, collaboration with other entities is essential. Acknowledgement The author thanks the staff and residents of Hamada and Yasugi cites for the interview research. This study was partially supported by JSPS KAKENHI, grant number JP18K05866.

References Böcher M (2008) Regional governance and rural development in Germany: the implementation of LEADER+. Soc Ruralis 48(4):372–388 Bosworth G, Annibal I, Carroll T, Price L, Sellick J, Shepherd J (2015) Empowering local action through neo-endogenous development: the case of LEADER in England. Soc Ruralis 56 (3):427–449 Dargan L, Shucksmith M (2008) LEADER and innovation. Soc Ruralis 48(3):274–291 Kobayashi Y (2017) Towards building a model of community business development: case studies of wineries run by not-for-profit organizations. J Rural Probl 53(1):20–30 Morishita H, Nakamura T (2012) A comparative analysis of the role of non-economic organizations in the formation of regional cooperative management bodies: a case study of a farmers’ market in an urban area and in a mountainous area. J Rural Probl 48(2):247–252 Morishita H, Nakamura T, Tanooka T (2011) The factors in the development of regional cooperative management: a case study of Tanabe City, Wakayama. J Rural Probl 47(2):208–213 Newbery R, Sauer J, Gorton M, Phillipson J, Atterton J (2013) Determinants of the performance of business association in rural settlements in the United Kingdom: an analysis of members’ satisfaction and willingness-to-pay for association survival. Environ Plan A 45:967–985 Ray C (2000) The EU LEADER programme: rural development laboratory. Soc Ruralis 40 (2):163–171 Ray C (2006) Neo-endogenous rural development in the EU. In: Cloke P, Marsden T, Mooney P (eds) The handbook of rural studies. SAGE, London, pp 278–292 Shucksmith M (2010) Disintegrated rural development? Neo-endogenous rural development. Soc Ruralis 50(1):1–14 Vasstrøm M, Normann R (2019) The role of local government in rural communities: culture-based development strategies. Local Gov Stud 45(6):848–868 Yasunaga N (2012) A study on the expansion base of community business in hilly and mountainous areas. Jpn J Farm Manage 50(3):84–89

Part IV

Sustainability of Rural Society: Possibility of Community Development Projects

Chapter 11

The Role of the Community Hub Established with Multiple Communities in Hilly and Mountainous Areas Nobuyoshi Yasunaga

Abstract In this study, we examined the role of the community hub in hilly and mountainous areas as well as the introduction and creation process of the hub by multiple communities. Community hubs are generally operated by broad-based community associations in collaboration with multiple communities. Using the field interview survey data obtained from the research of three rural community associations located in the Kochi prefecture, we investigated introductory process, the residents’ participation characteristics, the constraining factors, and the expansion possibilities for rural vitalization. Finally, we will present our three main findings as follows. First, the vitalization activities and community participation before the establishment of a community hub affect the creation and expansion of the community hub. Moreover, subsidies obtained from the prefecture and the municipalities along with the participation in activities with corporations positively contributed to the activities. Second, it is difficult for the residents to secure young workers in each district. Third, it is hard for all residents to participate in this process. The results suggest that the constraints of available human resources and the scale of the region affect the promotion of the hub. These findings indicate that new way in collaboration with neighboring communities is needed for sustainable development. Keywords Community hub · Community activity · Community participation · Multiple communities · Hilly and mountainous areas · Social capital

N. Yasunaga (*) Institute of Agricultural and Life Sciences, Academic Assembly, Shimane University, Matsue, Shimane, Japan e-mail: [email protected] © Springer Nature Singapore Pte Ltd. 2020 N. Yasunaga, N. Inoue (eds.), Farm and Rural Community Management in Less Favored Areas, New Frontiers in Regional Science: Asian Perspectives 44, https://doi.org/10.1007/978-981-15-7352-1_11

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Introduction

The maintenance of rural communities has been a great concern for environmental and societal conservation. It is generally difficult to maintain rural communities in hilly and mountainous areas because of depopulation and aging in the communities. In recent years, there have been particular cases in which the population of a rural community has decreased to a point where it has to be merged with other one. Therefore, strong coordination among multiple communities is also an indispensable element for maintaining a rural society. Under the circumstances, local residents conduct community-based development projects instead of the government-based expansion projects which cannot be properly organized. The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) is working to create a “small base” for lifelines by creating facilities and functions necessary for the area and a place within walking distance where local vitalization activities can be performed. Activities that are difficult to perform in a single rural community can also be realized in multiple rural communities. The effective use of local vitalization bases in the range of former elementary school districts where residents can easily gather will enable the activities to be carried out efficiently and will eventually lead to the successful maintenance of a rural society. In general, the “small base for living” proposed by the government has two major roles. The first role is to maintain life services and offer disaster prevention functions for residents. The second one is to use regional resources for enhancing regional attractiveness, thus increasing the outside money going into the region through the accepted collaboration with non-regional individuals. With respect to the first role, creating a one-stop bus system connecting the regions for elderly people who do not have a car to use for necessary tasks can be raised as one example for securing daily transportation in hilly and mountainous areas. Regarding the second role, enhancing the attractiveness of a region by way of rural diversification using local resources and accepting human resources from outside the region is an example of creating income. In making a “small base for living,” each autonomous district is made as small as possible, such as “oaza including multiple communities,” “old elementary school district,” and “old municipal district before merger” so that people and resources can be used in the area to operate the base themselves. In addition, the range is set as a community-based foundation, such as setting a range where people can walk and move for their life services and local activities. Previous research on rural development is common in foreign countries such as Japan and Europe. For instance, Vasstrøm and Normann (2019) focused on the culture-based development projects centered on the research in three rural communities. They proposed local governance framework based on neo-endogenous development theory (Shucksmith 2010) focusing on the following three socio-economic outcomes: (1) social capital development, (2) problem-solving capacity, (3) innovations. Newbery et al. (2013) examined the factors affecting the members’ satisfaction and willingness to pay for their business association’s survival. They clarified that their association is important for the communities where trust is lower, and that

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group size and members’ trust positively influence the satisfaction and willingness to pay. Recently, in Japan, there has been research on cooperation by multiple communities in the range of former elementary school districts such as Nakatsuka and Hoshino (2007) as well as Yasunaga and Nagano (2018). Moreover, researches on self-governing organizations that make bases established with rural community cooperation such as Fujiwara and Hirota (2018) along with Hattori and Ueno (2015) have been recently observed. Nakatsuka and Hoshino (2007) examined the reformation process of the autonomous organization of the Kusayama District in Tamba-Sasayama, Hyogo prefecture. In doing so, they clarified the problems of selfgoverning organization where inhabitants have the burden of too many posts and cannot afford to work on new activities because the area of administrative assistance is not consistent with the local implementation system. Fujiwara and Hirota (2018) examined the establishment process of regional management organization (RMO) proposed by the Ministry of Internal Affairs and Communications (MIC) in Shizukuishi, Iwate prefecture. They pointed out the problem that the existing regional organizations—such as the residents’ associations and groups—did not participate in regional development meetings. It is at these gatherings where multiple residents share the regional issues and consider the solutions at an earlier stage; notably, the younger generations and women participated in the meetings. Regarding the problems of previous studies, there are few concerning rural activities before the establishment of the new community hub cooperatives among multiple communities which affect the current rural activities. In particular, research has been limited in clarifying the factors of activities for broad-based associations based on the community hub—especially in the former elementary school districts in the hilly and mountainous areas. In addition, research on community participation is limited. Previous studies have not sufficiently mentioned what factors on introducing the process of community hub affect the residents’ participation to the broad-based vitalization activities. Yet, it has been clarified that the participation rate of the residents in broad-based activities affects the vitalization of the coordination among rural communities. Therefore, this study aimed to qualitatively examine the establishment process of the community hub in hilly and mountainous areas in view of the relationship of past rural activities and community participation. It was important for us to clarify what areas can introduce the community hub and what kind of community participation is possible for sustainable community development.

11.2

Materials and Methods

11.2.1 Analytical Framework of This Study Figure 11.1 shows the analytical view in this study. We constructed the analytical framework based on the framework of Vasstrøm and Normann (2019) and

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Phase 1 Before the establishment of the community hub

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Multiple communities

Phase 2 Coordination for the establishment of the community hub

Phase 3 Participation for the activities of the community hub

Rural community

Rural community

Rural community

Process of accumulating the initial social capital

Council among the communities Process of utilizing the social capital Association based on the community hub

Increase of community participation

Process of increasing the social capital

Innovative activities

Fig. 11.1 Analytical framework of this study

characteristics of regional governance (Böcher 2008). In the case of creating a community hub with multiple rural communities, the degree of participation of the main activity members and residents depends on the nature of the local exchange activities that were originally carried out. To examine the actual conditions of the community hub, we defined the activities that occurred before the community hub was established as a first phase; the discussion and adjustment period for the establishment of the community hub as the second phase; and the activity terms of the post-establishment as the third phase. We defined the first phase as the process of accumulating social capital. It was assumed that there were local exchanges among multiple communities through local events. Furthermore, the daily degree of attachment and interest in the area is an issue because the vitalization of the region begins after the residents with attachment and interest experience a serious crisis over the current conditions in the region. We considered the second phase as the process of utilizing past social capital. In general, it is difficult to get opinions from residents and the opinions on the activity of the community hub. The fact that the residents can easily exchange opinions on a daily basis has a positive effect on the opinion exchange concerning the community hub. Reflected opinion makes residents responsible and motivated. If there is a discrepancy between the purpose of the hub and the issues that the residents think about, the residents would be discouraged from participating. Therefore, it is necessary to clarify the needs of residents. We saw the third phase as the process of increasing social capital. In general, activities for vitalization are mainly conducted by people who are active and cooperative. Residents then gradually increase awareness to the established community hub; next, voluntary community participation will be seen. Rural development depends on levels of community participation (Vasstrøm and Normann 2019) so we focused on how the first phase had an influence on the second and third phases in the view of community participation.

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In addition, we considered the relationship among the social elements for rural neo-endogenous development. Neo-endogenous development depends on the bottom-to-top activities that integrate external influences to increase local potential (Bosworth et al. 2015). We also focused on whether or not the community activities from the community hub’s promotion depended on certain factors which restricted broad-based vitalization activities with multiple communities based on the definition of community-led local development. We considered if they would align with the key features of the LEADER philosophy (Ray 2000; Dargan and Shucksmith 2008; Konečný 2019; Bosworth et al. 2015) which are defined as the following: Areabased local development strategies; Bottom-to-top elaboration and implementation of strategies; Local public-private partnerships/local action groups; Integrated and multi-sectoral actions; Innovation; Cooperation; and Networking. In the following sections we present an analytical view of this research.

11.2.1.1

Issues Related to the Operators in the Facility of the Community Hub

Vasstrøm and Normann (2019) also distinguished between the role of local government as a leader and a facilitator of the community hub. When multiple rural communities cooperate in the second phase, it is important to consider which rural community would be the leader. The greater the attachment to the community to which they belong, the greater their importance. It is important that the operator is a person who entirely understands the residents’ positions. This makes it easier to participate with the residents in the event. Therefore, it is necessary to carefully decide which person will be the operator. Koike (2009) also pointed out that the creation of a new space through a community hub will create volunteers for the next generation of community development. It is also considered that whether or not the facility as a place for daily community development will affect the broad-based exchange activities. Besides, the form of vitalization through a community hub depends on whether the range of the utilization of the facilities that can be used as exchange bases connecting the inside and outside of the autonomous region is limited. Another issue is whether there are individuals who can work on a fulltime basis at the facilities of the community hub.

11.2.1.2

Cooperation among Residents in the Range of the Autonomous Region

Residents’ participation in multiple settlements (i.e. collective actions) is related to bonding social capital (Carbone 2019). If residents are widely involved in the autonomous region, it is expected that the continuation of the hub will be easy, and the development activities will become possible. When there is a burden placed on a few specific residents, the activities will more than likely stagnate. However, it is assumed that continuation is possible if there is cooperation among the various

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rural communities. In addition, if there is an opportunity for residents to share the information about the activities and significance of local autonomous regions, broadbased exchange activities will progress throughout the region.

11.2.1.3

Cooperation with Corporations and Organizations Out of the Range of the Autonomous Region

Phillipson et al. (2019) focused on the network of community development organization (CDO). They revealed that the rural firms have similar levels of turnover compared to their urban counterparts and have goods and services suitable for exporting. Because local autonomous organizations are territorial communities, they must both engage in activities to meet the needs of the residents in the autonomous region as well as work outside of the community in order to gain outside money for maintaining their activities. With the aging of the society, the needs for efforts to make a living inside the autonomous region would increase, and it is expected that it will be difficult to allocate human resources to efforts to work for gaining outside money. The degree of cooperation with other organizations controls the extent to which human constraints within the autonomous region are reduced. This is affected by the continuation or development of exchange activities including outside people. Accordingly, the role of a local government is important. A local government supports and dictates the institutional capacity for vitalization activities of the rural community.

11.2.2 Target Areas We focused the community hub, which is a community center for rural vitalization. Our area of study was in the Kochi prefecture, where there is the highest percentage of forest area (more than 80%) in Japan; moreover, it has more than 80% of the hilly and mountainous areas. The Kochi prefecture also has one of the most rapidly aging societies in Japan. The total population is 728,276, based on a census population of 2015. The percentage of the population under the age of 15 is 11.6%; the percentage of the working-age population between the ages of 15 and 64 is 55.5%; and the percentage of the elderly population is 32.8%. The residents have taken the initiative in creating a broad-based community system that will work on regional vitalization activities that are at old elementary schools. The center also plays a role with regard to meeting places while accepting human resources from outside the region. In the Kochi prefecture, the prefectural office proposed a “community activity center,” where local residents can take the initiative based on old elementary school and meeting places. It was intended for utilizing human resources in the process of generating income for outside the region. The residents generally work on activities such as life, welfare, industry, and disaster prevention in a community activity center

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cummulative number 60 50

40 30 20 10 0

2012

2013

2014

2015

2016

2017

2018

2019

Fig. 11.2 Cumulative number of community activity centers. Source: Kochi prefectural office. Note: This figure was made based on the situation of October 7, 2019

in response to local issues and needs. As of November 2014, in the first third year of the program, 15 districts have been opened the community activity center in four cities, eight towns, and one village in Kochi Prefecture; efforts are also being made to meet the needs of each region. Then, the number of the centers has increased as shown in Fig. 11.2. As of October 2019, 56 districts have been opened the center. The Kochi prefectural office has been introducing the “Kochi hometown cooperators” and providing financial support to this initiative. These cooperators are designated individuals—including local vitalization cooperators and rural community supporters—who promote regional vitalization activities at the community activity center. The prefectural office then actively introduced to local districts in order to secure local leaders. The subsidies for activity promotion operating costs are allocated to the Kochi hometown cooperators. This financial support is designated as one million yen per cooperator and the support period is in place for up to 4 years. Furthermore, with respect to the initial investments for the community activity center, the subsidies are allocated for up to a maximum of 30 million yen per year—regardless of the recipients being a high-tech or a traditional business. This support period last up to 3 years and is mainly used for the maintenance and repair of facilities and vehicles. It is difficult to initiate a large-scale cooperation with multiple communities because the communities are separated from each other in the mountainous area. Therefore, we selected the area where a small base for living was made up of a few rural communities as the target areas for this study. We chose the following three community activity centers after considering the promoted industrial regions with regard to hilly and mountainous areas in the Kochi prefecture. The targeted centers were “Ishihara no Sato,” located in Tosa; “Hatsuse,” located in Yusuhara; and “Hokugo,” located in Kuroshio. Figure 11.3 shows the locations of the three targeted districts in the Kochi prefecture.

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Kochi (prefectural capital) Ishihara District in Tosa Hatsuse District in Yusuhara Hokugo District in Kuroshio

Fig. 11.3 The target areas in this study Table 11.1 Overview of the study areas Name of center Opening date for center Implementing entity Name of district Number of communities Elevation (height above sea level) Closed year of elementary school Distance to the municipality office Population Number of households Aging rate of the population

Ishihara no Sato July 1, 2012 Ishihara no Sato council Ishihara District, Tosa 4 rural communities 417.7 m

Hatsuse January 12, 2013 Hatsuse promotion committee Hatsuse District, Yusuhara 7 rural communities

Hokugo March 5, 2013 Hokugo District council Hokugo District, Kuroshio 3 rural communities

360.3 m

48.5 m

2009

1988

2011

11 km

15 km

5 km

323 160 47.3

127 70 59.1

121 66 58.6

Note: Population, number of households, and aging rate of the population are shown the figures as of October 7, 2019

Table 11.1 shows the overview of the community activity center. The elementary schools have already been closed and the aging rate is high in each district. Ishihara no Sato used the former Ishihara Elementary School as one of these centers. It was

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opened in 2013 and it is supported by four rural communities. Hatsuse renovated the former Hatsuse Higashi (East Hatsuse) Elementary School and opened it as a community activity center in 2013; it is backed by seven rural communities. Hokugo used the former Hokugo Elementary School as a center. It was opened in 2012 and it consists of three rural communities. The survey was conducted from September to October 2014. The Interview research was based on the questionnaire. It was conducted with the assistance of the staff of the center, local representatives who coordinate multiple villages, and a local vitalization cooperator at each community activity center. The contents of the survey included the background of the center, the activities in multiple communities, and the effects of the center’s activities.

11.3

Results and Discussion

11.3.1 Results Based on the research, we extracted the characteristics of the community activity center beginning with the first phase which involved the consideration of the pre-activities as an accumulation of social capital. The second phase of discussions involved the establishment of the community hub and the third phase concerned the activities happening through the community hub. We also extracted the initiatives of the local people and community participation characteristics in the activities. Table 11.2 shows the characteristics in each phase related to the establishment of a community hub. Regarding the first phase of the Ishihara District, four rural communities have been holding regular events for local exchanges that have been centered on the organization of the elementary school association since the end of World War II. The athletic festival has been held 54 times since the end of World War II. Even if the population is small, the four villages are divided into two teams and hold an athletic meet; a souvenir party is also held at the same time. The elementary schoolbased organization also provided financial support for education and other activities by using the forest assets shared by the residents in the district. In the second phase, workshops were held 11 times from November 2011 to March 2012 to discuss the agenda of the community activity center. Without deciding the category, the residents worked out the opinions and classified what kind of Ishihara District they would like to have. The participants were not fixed, and they took the participation approach that those who wanted to participate should attend the meeting. In addition, they tried to incorporate their vision utilizing as many opinions and requests as possible from the residents. The participants in the workshop were always able to be secured because it was not difficult for all the residents to vitalize the district for the locals. After the workshop, they decided of the four directions of “work / earn,” “support,” “realize,” and “gather” by creating a general view of the opinions and grasping the overall picture. In the third phase, the center’s activities were divided

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Table 11.2 Characteristics in each phase Name of center Name of district First phase

Second phase

Third phase

Ishihara no Sato

Hatsuse

Hokugo

Ishihara District, Tosa

Hatsuse District, Yusuhara

Hokugo District, Kuroshio

There was exchange and organization among multiple communities within the former elementary district Established a new company on their own instead of a JA retail facility

There was an exchange with Korean students

There was an exchange between elderly and other generation

The facility was a base for paid transportation services

Residents held many workshops and .Gathered the opinions of as many as possible

It is difficult to collect residents’ opinions. Residents usually move in relation to the regional plan of Yusuhara The center’s activities were determined in relation to the existing organization

Residents devised a regional development plan for the Hokugo District Considered the use of the old elementary school based on the regional development plan

Accurately communicated to the rural community using the existing organization Planned events in collaboration with local vitalization cooperators

Residents tried to develop special farm processing products and create new products using local timber

We constructed a restaurant for kimchi and the and Jimjilbang for exchanges and employment services Promoting activities in collaboration with nearby centers

Planned events in collaboration with the welfare facility for the elderly The community supporters tried to make special products in collaboration with the elderly Activity sections were eliminated due to lack of human resources

Note: This table was made based on field interviews

into four activities: (1) the department for direct sales, (2) the department for supporting joint works, (3) the department for gathering people and communication, and (4) the department for generating new energy. Along with regular events that have been held for a long time, there have been activities for acquisition of outside money and exchanges of human resources outside the region. The event aims to sell special local products and host exchanges outside of the region, along with holding various events such as the Tanabata Festival, summer festival, illumination, Yosaku market in autumn, and the 1 day tavern. They carried out light-up design and music festivals by interacting with people from outside the region such as students. As an activity other than the aforementioned events, they started activities to make it a new special product. For instance, they received an order from a Buddhist tool shop for the production of lanterns made from local timber.

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Regarding the first stage activity of the Hatsuse District, since 1997, Korean exchange students have been interacting with residents while using the local facility as accommodation. Kimchi making, restaurant management, and transportation support have been financially supported by the Takatori Kimchi Village Executive Committee; Kizuna, a nonprofit organization (NPO) established for regional transportation; and Hatsuse Higashi (East Hatsuse) Liaison Council—all of which are influential in the district. The reason behind making kimchi is that they have been interacting with Korean students since around 1997; thus, it is considered important when discussing the policies of the community activity center. In the second phase, the regional vitalization support project was received from the Kochi Prefectural office in 2002. Then they held a meeting once a month to discuss the vitalization activity. In their discussions, their opinions were not organized because there was no leader and subsequently any direction could not be decided upon. Therefore, they started to consider the direction based on the interaction with the Korean students and the existence of Kizuna. After visiting Korea in 2004, they decided to use Takatori’s house as a community activity center which operated a restaurant and a Korean-style sauna called “Jjimjilbang.” At the same time, they bought land to build a parking lot for restaurants. In the third phase, as mentioned above, Kizuna continued to take part in a paid transportation business for elderly people who did not have cars in the Hatsuse and Matsubara areas of Yusuhara. For this purpose, they used the activity center managed by the Hatsuse East Liaison Council. While being engaged in the transportation business. They also used the center to make kimchi every 2 h on Mondays and Tuesdays. The kimchi would be sold at events and at the managed restaurants on Fridays, Saturdays, and Sundays. This was organized by the Takatori Kimchi no Sato Executive Committee Meeting. Moreover, the community activity center was used as a simple accommodation facility with a futon (Japanesestyle bedding) and meals and a place where women in the district could gather to make kimchi. Essentially, they were engaged in these activities to obtain outside money. In October 2014, the Jjimjilbang sauna was built. The sauna earns outside money and is a place where young people from outside the region can settle and work while interacting with residents in the district. Regarding the first phase of the Hokugo District, the former Hokugo Elementary School was closed, and as a result, discussions on implementing the community visions were held within the community. The board of directors holds meetings twice a year in three rural communities. Celebrating the Keirokai with only elderly people promoted the support of elderly people and started the promotion of intergenerational exchanges. Prior to the establishment of the community activity center, activities that supported the elderly were conducted in the local farming communities; activities at the center are also based on that activity. In the second phase, when setting up an organization, it was necessary to discuss which community would take the leadership role. As a result of the discussion, the head of the district was selected from the community which had the largest number of households among the three rural communities. The district head served as the representative of the organizations of community hubs, and the leaders of the other districts became deputized representatives. During the initial stage of the discussion, the idea

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came up that the funds for the community hub were needed for the operating costs, such as the wages and labor of the welfare center, which has already been established. However, they came to the conclusion that for the purpose of independence, they should create a shukuba (a special inn for long visits in the region) as well as special products to obtain outside money. How to attract guests from outside the region has become a problem regarding the effective use of facilities. Additionally, they decided to promote the utilization of the shukuba for those who returned home and used them for training camps or hostels such as for university circles. In the third phase, the community activity center became the venue for new events; public baths and a dinner, which was held once a week; the evacuation site in the event of a large-scale disaster; and a retail store that handles daily necessities. The center also supplied products and services for elderly people to meet the current needs of these residents. In the future, they want to utilize the facilities for accommodation facilities. At the beginning of the establishment of the center, there were subcommittees for events and special product developments. However, the labor pool in the district is limited and so it always seems to be the same members who are involved whenever they take actions. Therefore, the subcommittee was abolished, and everything was then unified into one activity as a community vitalization activity in the center. They still conduct activities without subcommittees. Accordingly, the staff acts as the executive office of the community activity center and is engaged in the planning and managing of the center’s activities. The center is used as a place for interaction among residents, and activities are carried out according to their demand. Besides, since the district is located along the sea of Kuroshio, the center also serves as an evacuation site in the event of a disaster and has the capability to allow a helicopter to land on the schoolyard.

11.3.2 Characteristics of Community Participation In the Ishihara District, the community-level activities are centered in the school association of the former Higashi Ishihara Elementary School, which had been coordinating events for the district before the establishment of the center. The representatives of four rural communities serve as the officers of the activity center. The residents had a high awareness for regional issues and there were mutual exchanges with multiple communities, and most of the residents participated in the new event. On the other hand, there are some residents who are reluctant to accept exchanges with outsiders because of the strong connections within the region. Most female farmers were involved in producing special farm products. However, how to maintain the taste was an issue for the aging population. Furthermore, when the gasoline stations and household goods stores which operated Japan Agricultural Cooperatives (JA) closed due to the merger of the JA before the establishment of the center, a limited liability company was established by the residents to continue these businesses. The limited liability company is an organizational form in which all

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employees are owners of the company. From this point as well, we can see there is a residents’ consciousness toward community participation. In the Hatsuse District, the residents went to the Hatsuse community activity center on a daily basis and began to work together there. Moreover, they began to cooperate as an entire local community since it was an activity at the old elementary school. All of the residents are members of the Hatsuse East Liaison Council; yet, the number of central people for vitalization was decreasing. Presently, 11 people are the main participants—however, aging is a problem. In addition, women were involved in the production of kimchi specialty products, which was the activity of the Takatori Kimchi no Sato Executive Committee. Nevertheless, the other residents did not participate in the activities because the main activity was kimchi production. As an overall regional management system in Yusuhara, the internal workings of the district should be managed by the district, and the town mayor manages the agendas for all of the districts in Yusuhara. In this respect, the district’s mayor formally becomes central to the activities of the district. In the Hokugo District, there was a feeling that the members of the women’s association wanted to do something for the elderly in the district as the core of their activities. Therefore, the central person was also a member of the women’s association. Almost all of the women on the farm participated in the center’s activities. In addition, elderly people who lived alone gathered at the center once a week. In practice, most of the elderly in the region participate in the service of providing baths and dinners once a week. Furthermore, about 300 people participate in the summer festival and about 40 people participate in the Rape Blossom Festival. However, according to the results of the questionnaire research conducted by the Kochi prefectural office, there were some people who knew the location of the center but did not understand the details of its activities. An activity that involves people who are not interested in the center’s activities is an issue to be considered in regard to the future. As for some opinions, a resident said that the merger with other districts should be accelerated due to the aging of the central person and the small number of households in the district. In addition, there was an opinion that donations should have been already collected, in anticipation of the decrease in the number of households. Finally, consensus building among all of the residents is also an issue.

11.3.3 Discussion In the Ishihara District, through a workshop that established the center based on the elementary school association, the participants were able to easily come and go and they were able to smoothly work on the vision. In particular, it is inferred that devising a method of providing a place where residents can easily participate played an important role in the formation of the community hub. Regarding regional management, one must consider the experience from the JA’s sales facilities being withdrawn from the district and the residents’ subsequent establishment of a company along with intercommunity exchanges throughout the

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organization based on elementary schools. These events may affect the high level of attachment, interest, and awareness that the residents must do something for the area. This can be inferred from the fact that a stable number of people could be secured at the 11 workshops held when the center was established. Since the contents of the workshops were distributed to all of the residents regardless of their level of participation, the efforts reduced the gap between the internal problems faced by the residents and the purpose of the center. One reason why the workshop participants were stable is that each community representative accurately communicated the contents of the program to each community. Moreover, the fact that their activities were featured on a TV program and that the prefectural governor and the members of the prefectural assembly visit each year helped to further enhance the vitality of the residents’ activities. Regarding the utilization of outside human resource, the local vitalization cooperator plays an important role for planning regional events. The Kochi prefectural office provides financial support, but the government only provides standard support. Therefore, the independent activities were carried out based on the ideas of local and outside human resources. In the Hatsuse District, the central person in the activity is formally the district mayor, but the existence of leaders was not recognized for the residents. Because there was a situation in which the residents’ opinions were not organized, the direction of the center was determined by factors such as exchanges with Korean students, which had in place before the establishment of the center. From this result, it is inferred that the independence of the residents was relatively high due to the exchange activities outside the area before the establishment of the center. Regarding regional management, as the direction on what they should do was not immediately decided in the discussion of the center’s establishment, it was inferred that some of the residents were not able to grasp the district problem in detail. It is also possible that all of the residents were not able to share the awareness concerning the regional problem. Because there is an annual decrease of 50 people due to the natural causes, the center’s purpose matches the residents’ desire to increase the number of young people and create a place of employment. However, the activities in the Hatsuse District are essentially carried out based on the town’s policy. This makes it difficult for the residents to immediately carry out their projects they want to complete. Therefore, it is assumed that it is necessary to build a new system that makes it easier for residents to carry out their own initiatives. Regarding the utilization of outside human resources, Yusuhara supporters entered the district to bolster activities such as planning and public relations. Moreover, as a regional characteristic, Hatuse is trying to develop its activities by cooperating with neighboring districts. It is presumed that these activities are influenced by the policies of the town to a large extent. In Hokugo, the foundation of current activities was that there were local exchange activities such as the summer festival to deepen intergenerational exchanges before the establishment of the center. However, in the second phase, it became important thing to generate operating expenses for the center. The reason why the operation cost was emphasized was that the exchange activities within the region were continued for a certain period and that there were some exchanges between the

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elderly and the women’s association. It is understood that the residents emphasized the issue of earning outside money rather than the exchange within the region. Regarding regional management, the fact that members of the women’s association in the district—which is the center of the vitalization activity—were greatly concerned regarding the lives of the elderly and regional problems becoming the basis for the current activity. It was considered that the residents could grasp the current situation and share the awareness of the problem because they continued to hold their own exchange events before the center’s establishment. In addition, a workshop was held prior to the center’s establishment to create a future vision for the district, which was triggered by the closure of the elementary school. Accordingly, this workshop made the regional activities more efficient. The opinions that “I want to deepen exchanges among the three communities,” “I want to connect across generations,” and “I want to inherit our lifestyle (culture),” are consistent with the purpose of the current center. It can also be said that the center’s activities have become personally interactive operations because members of the center have received the knowledge about living and agriculture directly from the elderly and have become more active with them. With respect to the issue of human resources, community supporters interviewed the residents and worked on the commercialization of a type of historical candy made from rice. However, it is inferred that there are human restrictions which promote the activities in relation to the number of rural communities because of the elimination of the subcommittee. It is considered that a further human resource exchange should be needed for achieving continued innovation.

11.4

Conclusion

This study clarified the characteristics on the introduction of a community hub in view of regional management and community participation using the field interview survey data of three community activity centers in the Kochi prefecture. The community hub system can be applied smoothly since each district had been vitalized to some extent with original activities before the hub was created. On the other hand, main activities through community hub differ depending on the extent of each regional development. Notably, in the Ishihara District, the main activity before its center’s establishment was to sell the daily necessities and gasoline to the residents. In the Hatsuse District, the main activity before its center’s establishment was foreign exchanges between the residents and Korean students. In the Hokugo District, the main activity before its center’s establishment was facilitating exchanges between elderly people and other generations. A community activity center in hilly and mountainous areas is important not only to obtain outside money but also to create a new relationship with the community and to create an opportunity for migration from urban areas to rural areas. Creating an environment of community participation involves the gathering of opinions of various residents and implementing policies that reflects their viewpoints. Therefore,

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the key for promoting community development is to repeatedly enable communication among the residents through information exchanges. The people who use the center with an attachment are needed for the promotion. However, the results suggest that the constraints of human resources and the scale of the region affect the promotion. The common problems at the three community activity centers were “there are no young people who will be responsible for the future of the center” and “there are some residents who do not know what the center is doing or are unwilling to do.” It is difficult for all residents to participate in the center’s activities. It is considered that new ideas and ways of collaboration with neighboring communities are needed for the sustainable development of these centers. Acknowledgements The author wishes to thank the staff of the Kochi prefectural office and the residents related to the community activity centers for the interview research. The author also thanks Mr. Nakasuji who was student and supported our study in the laboratory. This work was partially supported by JSPS KAKENHI, grant number JP18K05866.

References Böcher M (2008) Regional governance and rural development in Germany: the implementation of LEADER+. Sociol Rural 48(4):372–388 Bosworth G, Annibal I, Carroll T, Price L, Sellick J, Shepherd J (2015) Empowering local action through neo-endogenous development: the case of LEADER in England. Sociol Rural 56 (3):427–449 Carbone JT (2019) Bonding social capital and collective action: associations with residents’ perceptions of their neighbourhoods. J Community Appl Soc Psychol 29(6):504–519 Dargan L, Shucksmith M (2008) LEADER and innovation. Sociol Rural 48(3):274–291 Fujiwara M, Hirota J (2018) Evaluation of the attempt to establish regional management organization in an initial stage case of Shizukuishi town, Iwate prefecture. J Rural Plan Assoc 37 (Special_Issue):244–251. [in Japanese] Hattori T, Ueno H (2015) The National Trend of establishment details and evaluation of local selfgoverning organizations at small autonomous units. J Rural Plan Assoc 34(Special Issue):195–200 Koike S (2009) A case study on the problematic stratification of residents in promoting participatory community design and development. J Rural Plan Assoc 27(4):365–374. [in Japanese] Konečný O (2019) The LEADER approach across the European Union: one method of rural development, many forms of implementation. Eur Countryside 11(1):1–16 Nakatsuka M, Hoshino S (2007) Problems and perspective of Autonomous Organization in Elementary School Division. J Rural Probl 26(Special Issue):299–304. [in Japanese] Newbery R, Sauer J, Gorton M, Phillipson J, Atterton J (2013) Determinants of the performance of business association in rural settlements in the United Kingdom: an analysis of members’ satisfaction and willingness-to-pay for association survival. Environ Plan A 45:967–985 Phillipson J, Tiwasing P, Gorton M, Maioli S, Newbery R (2019) Shining a spotlight on small rural businesses: how does their performance compare with urban? J Rural Stud 68:230–239 Ray C (2000) The EU LEADER Programme: rural development laboratory. Sociol Rural 40 (2):163–171 Shucksmith M (2010) Disintegrated rural development? Neo-endogenous rural development. Sociol Rural 50(1):1–14

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Vasstrøm M, Normann R (2019) The role of local government in rural communities: culture-based development strategies. Local Gov Stud 45(6):848–868 Yasunaga N, Nagano M (2018) Residents’ perceptions of their community formed within former elementary school district in hilly and mountainous areas. J Japan Assoc Reg Develop Vital 9:250–257. [in Japanese]

Chapter 12

Relationship Between Community-Based Tourism and Autonomous Organizations in Rural East Asia: Four Case Studies in Japan and China Shinji Takada

Abstract This chapter, firstly, considered how rural tourism has been positioned in Japanese and Chinese national policies. Secondly, based on the results of field surveys conducted in four regions in Japan and China, the current state of the organizational structure and operation of community-based tourism in each region was clarified. These cases are all advanced cases in each country, and different types of tourism organizations have been established and rural tourism has been implemented in each region. Thirdly, it focused on the relationship between autonomous organizations and tourism organizations and considered the role of community-based tourism in local autonomy. Keywords Rural tourism · Community-based tourism · Autonomous organization · Farm stay · Depopulation · Exchange between urban and rural areas · East Asia

12.1

Introduction

This chapter mainly describes cases about rural tourism in Japan and China. Therefore, the “rural tourism” here are “Green Tourism” in Japan and “Xiāngcūn lǚyóu” in China. According to the Ministry of Agriculture, Forestry and Fisheries in Japan (MAFF), “Green Tourism” refers to leisure activity of urban residents in rural areas when they visit rural areas and seek for natural landscapes and rural area’s lifestyle and enjoy themselves through interaction with rural residents or farm work experience in rural areas. The term has a broad meaning and applies not only to staying and farm experience but also to the purchase of souvenirs and to eating local

S. Takada (*) Graduate School of Agricultural Science, Kobe University, Kobe, Hyogo, Japan e-mail: [email protected] © Springer Nature Singapore Pte Ltd. 2020 N. Yasunaga, N. Inoue (eds.), Farm and Rural Community Management in Less Favored Areas, New Frontiers in Regional Science: Asian Perspectives 44, https://doi.org/10.1007/978-981-15-7352-1_12

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dishes in rural areas. “Green” has the meaning of rural sustainability or environmental conservation. The objective of Green Tourism is to promote rural regeneration, environmental conservation, and leisure activity of urban residents. “Xiāngcūn lǚyóu” means tourism in Xiāngcūn areas. Xiāngcūn areas mean under the responsibility of China’s administrative districts called “Xiāng” and “Zhèn,” generally, “Xiāngcūn Area” is translated as “Rural Area” in English. The term also has a broad meaning that refers to all tourism activities in Xiāngcūn Areas, similar to “Green Tourism” in Japan. Incidentally, “Zhèn” and “Xiāng” are often called “Town” in English, and “Xiāng” has a stronger rural character. The objective of Xiāngcūn lǚyóu is to promote a solution to the issue of rural poverty, rural urbanization. After the 1990s, Japan promoted rural tourism in earnest as a national policy, rural tourism was promoted in other Asian countries, such as China, Korea, Thailand, the Philippines, etc. According to Miyazaki (2006), what these countries have in common is the emphasis on agriculture and rural experiences for the endogenous development of rural areas, and resident organizations (hereinafter called tourism organizations) have been established in many areas to operate facilities and entertain tourisms.1 This feature is said to be unique to Asia, rarely seen in Europe. As background the organizing of rural tourism is a network in which residents have provided various kinds of assistance based on village or settlement. In this research, community-based tourism (CBT) means residents accepting tourists systematically in villages or settlements. CBT has attracted attention in Japan as promoting rural endogenous development and in China as promoting the building of a new socialist countryside from 2006.2 In Japanese rural areas, the birth-rate is declining and population drain to urban area is progressing in many areas, and depopulation and aging are issues. As a result, rural community activities have decreased, and the autonomous functions of rural villages and settlements have declined. On the other hand, in many rural areas in China, social structures are changing due to the mixed living of urban families (residents who originally lived) and rural families (migrants) and the development of urbanization. It has been pointed out that the changing social structure, aging, and the declining birth-rate have combined to see a decline in the functioning of existing autonomous organizations.3 The main purpose of this study is to consider what role CBT has played in addressing the issues facing rural villages as described above.

1

Since being proposed by Tsurumi and Kawata (1989), various scholars have advocated the importance of endogenous development in Japan. The following points can be said to be important in the concept of endogenous development: (1) regional development processes are diverse based on the regional characteristics, (2) respect the independence of local residents in the development process, (3) promoting socio-economic development by connecting various industries in the region. 2 The building of a new socialist countryside is a concept included in the 2006 11th five-year plan in China. It aims at comprehensive reform of rural areas, such as reducing the gap between urban and rural areas, solving the problem of poverty, and promoting rural urbanization. In this context, emphasis was placed on the independence of the residents, and the organization of the residents was encouraged. 3 Refer to Yan (2010), Eguchi (2011), Oshima (2015), and Takada et al. (2016).

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Specifically, the main question of this study is “How can tourism carried out based on the autonomous organization contribute to the livelihood support function of the autonomous organization?.” In order to approach this question, the study examines the operational structure of the autonomous organization and the tourism organization established by the autonomous organization. Based on the research, this chapter clarifies the relationship between the two organizations.

12.2

Issues and Method of this Research

In this research, the policy development of rural tourism in Japan and China is first summarized, and it considers how rural tourism has been positioned in the national policies of both countries. Next, the results of a field survey conducted in four regions, Japan and China, will clarify the current organizational structure and management of CBT in each region. Here, as examples in Japan, the Kita Village, Miyama-cho, Nantan City, Kyoto, and the MaruyamaVillage, Tambasasayama, Hyogo Prefecture, in China, Guāndì Village, Yànxī Town, Huáiróu District, Beijing and the Běigōu Village, Bóhǎi Town, are taken up. “District” in Kita district and Maruyama district means a settlement. On the other hand, “District” in Huairou District is an administrative district in China, and in the case of this chapter, the “Town” is the smallest unit of the administrative organization in China. Of these 4 areas, Kita district and Maruyama district are well known as advanced examples of rural tourism in Japan. Huairou District is an area where rural tourism is developing in China, and Guandi Village is the oldest rural tourism area in Beijing. In these regions, different types of tourism organizations have been established and rural tourism is being implemented. In addition, these areas were located in typical hilly and mountainous areas and faced a decline in autonomy before the implementation of the rural area. From this, it will focus on the relationship between local autonomy and tourism organizations and consider how CBT has affected local autonomy. For that purpose, face-to-face interviews with executives of local autonomous and tourism organizations were conducted. And in Guandi and Beigou village, interviews were held several times between 2010 and 2015 with executives of a tourism organization, a former executive of local autonomous, and local residents.

12.3

Review of Government Policies Promoting Rural Tourism

12.3.1 Japan The Green Tourism has been advocated by the government since the 1990s and has been regarded as an important position for agriculture and rural development.

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Specifically, in 1992, MAFF’s “New Direction of Food, Agriculture and Rural Areas Policies” aimed to create diverse jobs for the purpose of maintaining and improving the income of rural residents. As part of that, it was stipulated that Green Tourism will be promoted. In 1993, MAFF started a “Project to Promote Relaxing Vacations in Rural Areas,” selecting a model area for promoting and disseminating Green Tourism, and subsidizing the area. In 1994, the “Act for the Promotion of Infrastructure Development for Leisure Activities in Rural Areas” was enacted by MAFF, in order to promote Green Tourism, the development of an environment for accepting tourists and a registration system for farm stays were begun. The promotion of Green Tourism at this time also promoted the diversification of agricultural management, and efforts were made to develop farmer’s markets and community farms and human resources. The background to these were challenges such as the depopulation and aging of rural areas, the resulting increase in abandonment of cultivated land, and the disappearance of settlements. In urban areas, there is increasing consumer interest in building a visible relationship between food and agriculture. However, it is a reality that efforts to emphasize the agriculture and rural experience of urban residents and the interaction between urban residents are unlikely to solve the challenges faced by rural villages. In addition, it was difficult to succeed as a business, and in many regions, the business was developed depending on government subsidies. In the early 2000s, a series of food scandals occurred in Japan, increasing consumer distrust of food. Therefore, the exchange between urban and rural areas was encouraged, and the aim was to rebuild the relationship between producers and consumers. Then, in 2005, the “Act for the Promotion of Infrastructure Development for Leisure Activities in Rural Areas” was revised, and the deregulation regarding the opening of farm guesthouses was further promoted. The “Basic Plan for Food, Agriculture and Rural Areas,” which was revised in the same year, stipulated not only the promotion of urban-rural exchanges but also the promotion of settlement and the creation of new rural communities, including migrant from urban areas. In 2008, the “Children’s Rural Exchange Project” began under the jurisdiction of MAFF, Ministry of Education, Culture, Sports, Science and Technology, and Ministry of Internal Affairs and Communications, which promoted the acceptance of elementary and junior high school students in rural areas. In the same year, MAFF conducted the “Project to Promote bustling and beautiful Villages” and actively transmitted information on Green Tourism initiatives. In 2009, MAFF conducted an “Emergency Measure Project for Promotion of Green Tourism” and provided funding and other assistance to areas that were actively accepting Green Tourism and children. In the 2000s, Green Tourism aims to attract migrants from urban areas. The background to this is the further progress of aging and depopulation and aging of society and the accompanying decline in autonomous functions. In addition, the educational function of agricultural and rural experience was paid attention to, and the acceptance of elementary and junior high school students was encouraged. It is believed that this will lead to stable acquisition of customers for the region and may also lead to future acquisition of migrants by raising interest in agriculture and rural experiences.

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In recent years, at the same time as actively accepting children, efforts have been made to develop farm stays targeting foreigners visiting Japan. Specifically, in 2017, MAFF established a “Rural Grant” to support funding for the establishment of corporations, maintenance of facilities, promotion, etc. relating to farm stays. In 2018, the government’s “Basic Policy for Overcoming Population Decline and Vitalizing Local Economy 2018” stipulated the promotion of rural entrepreneurship and farm stays to promote the acceptance of children. In this way, in recent years, the focus has been placed on the development of farm stays, and the issue is how to make management self-sustaining. On the other hand, in regions where Green Tourism has been in operation since the very beginning, human resources are aging and changing generations have become an issue.

12.3.2 China In China, “Nóngjīalè” was spontaneously born in the late 1980s and spread nationwide. Since then, rural tourism has developed. “Nóngjīalè” is a form in which tourists visit a farmer’s house to eat and stay. It is not necessary to stay overnight. Drinking tea, eating food, or playing mahjong in a farmer’s house is also called “Nóngjīalè.” In this paper “Nongjiale” is called farm stay. Currently, “Nongjiale” is being rolled out all over the country and is an important content in rural tourism in China. Xiāngcūn lǚyóu (Rural tourism) has been positioned as a national policy since 1998. In 1998, the China National Administration (CNTA, currently the Ministry of Culture and Tourism: MCT) set the slogan for tourism in that year as “Chinese Urban and Rural Tourism” and actively promoted rural tourism. The background to this is the rise in the living standards of the people, which has heightened the need for tourism. In 2002, CNTA issued the “Inspection Standards for National Agricultural and Industrial Tourism Demonstration Sites (for Trial Implementation)” and in 2004 selected agricultural tourism demonstration sites. Agriculture tourism here is a form of tourism that uses the agricultural production process, rural landscapes, and the lives of farmers as resources. In 2006, “Guidance on promotion of rural tourism development” was issued by the CNTA, and the development of rural tourism was positioned as an important national issue. It was stipulated that a farm stay is a basic form of rural tourism and that the focus will be on the development of farm stays. It was stipulated that financial support and human resource development for rural tourism would be provided. In 2007, CNTA and the Ministry of Agriculture of the People’s Republic of China (MOA) jointly issued a “Notice on Actively Promoting the Development of Rural Tourism.” It stipulated that the development of rural tourism was an important part of the “11th Five-Year Plan,” which set out the national strategy from 2006 to 2010. It was stipulated that agricultural and rural development policies would be concentrated in the rural tourism demonstration sites. In 2010, the CNTA and MOA signed a cooperation framework agreement to jointly promote rural tourism.

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Looking at the first decade in which the central government promoted rural tourism as a national policy, farm stay was initially supported, since then, it has been actively supporting rural tourism. At the same time, in promoting rural tourism, it was encouraged that local residents participate in tourism activities systematically. Initially, CNTA was in charge of the main policies, after that, the MOA became involved in policymaking, and its importance as an agricultural and rural development policy increased. In 2016, “Guidance on Further Development of Leisure Agriculture” was issued jointly by 14 departments, stipulating that the quality of Leisure Agriculture should be improved, the development of various forms of tourism should be promoted, traditional culture should be preserved, and financial support should be expanded. In addition, it was stipulated that Specialized Farmers Cooperatives and farm stays would be supported to reduce poverty. In the same year, an “Action Plan for a Project on Poverty Reduction through Rural Tourism” was issued jointly by 12 departments, stipulating that by 2020, 2.3 million poor households and 7.47 million poor populations would be enriched through the development of rural tourism. In 2018, the Central Committee of the Communist Party of China (CCCPC) and State Council issued a “Suggestions on Implementation of Rural Development Strategy” and stipulated that they would work on improving the quality of rural tourism. Based on that, MOAR issued a “Notice on Efforts to Improve the Quality of Leisure Agriculture and Rural Tourism” stating that it would promote infrastructure development, human resource development, and differentiate itself by region. In 2019, the MCT and the National Development and Reform Commission (NDRC) issued a “Notice on Creating a List of Rural Tourism Priority Villages” and set criteria for selecting rural tourism priority villages, with the aim of developing rural tourism. In the same year, MCT and Agricultural Bank of China (ABC) issued a “Notice of Financial Support to Rural Tourism Priority Villages” and over the next 5 years, it has stipulated that it will provide $14 billion in credit accommodation and support the development of rural tourism priority villages and disseminate a variety of rural tourism financial products. The last decade shows that various departments of the central government have been jointly involved in the development of rural tourism and have become more important as a national policy. Specifically, the importance of poverty reduction measures is increasing, and efforts are being made to improve tourism quality and financial support.

12.4

Overview of Study Area

12.4.1 Japan 12.4.1.1

Overview

Miyama-cho is located in the center of Kyoto Prefecture and belongs to Nantan City. The total area is 340.47 km2, most of which is forest. As of 2020, the total population

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was 3675, and in 2006 it merged with neighboring areas to form Nantan City. Miyama-cho was established by the merging of five villages in 1955, and now an autonomous organization (Regional Management Organization: RMO) has been established for each old village. Under the RMO, there is an autonomous organization at the settlement level. The Kita district belongs to Chii RMO (former Chii Village), and it is a mountain village located in the central part of Miyama town, one and a half hours drive from Kyoto city. The total area is 1.27 km2, as of 2020, it has a total population of 96 and a total of 48 households. The population is aging and the population over 60 is 56% of the total population. The population has been decreasing year by year and has declined significantly since 1979, when it was 173. After starting rural tourism five households have migrated, but the decline in the population has not stopped. The Kita district still contains thatched private houses, which are said to be part of the original scenery of rural Japan. These have been selected as “Important Preservation Districts for Groups of Traditional Buildings” and attract tourists now. Thatched private houses have been renovated and preserved using government subsidies and have increased since the start of rural tourism. The activities of the Kita district are known as advanced tourist destinations, such as being commended by the government as excellent tourist destinations. Tambasasayama City is located in the central eastern part of Hyogo Prefecture, with a total area of 377.59 km2 and a total population of 39,829 as of 2020. It was born in 1999 by the merger of four towns. The Maruyama district belongs to the Johoku RMO and is a small settlement located in the mountains about an hour’s drive from Kobe City. As of 2020, the total population was 22 and the majority of the population is around 70 years old, and the population is aging. The total is of 7 households, and since starting on rural tourism, the number has increased from five to seven due to the migration of two households. Similarly, the population has increased from the initial 19. In this way, the population has increased in the Maruyama district since starting rural tourism. At the beginning, there were seven vacant houses, but now there are three, and two of them are planned to be renovated and used for tourism. The efforts of the Maruyama district have received nationwide attention, such as receiving the Hyogo Governor’s Award and visiting government officials.

12.4.1.2

Current Status of Local Autonomous Organizations

The autonomous organization in the Kita district has a structure as shown in Fig. 12.1, consisting of seven executives, and all residents belong to the autonomous organization. Many autonomous organization executives have concurrent posts with community center executives. Specifically, the chairman of the autonomous organization and the director of the community center, the vice-chairman and the vicecommunity center director, and the manager of the autonomous organization and community center are the same person. In addition, there are several members in the women’s division of the community center, two of which are active as women’s

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Community Center

Chairman

Chairman

Deputy Chairman

Deputy Chairman

Manager

Manager

Accounting

Accounting

• Women’s Division

• Women’s Division

• Youth Division

• Youth Division • Welfare Division • Culture Division Kita District

Autonomous Organization Chairman Deputy Chairman = Accounting • Elderly Person Watching • Health • Traffic Safety • Agricultural Management • Physical Education • Human Right Awareness • Gender Equality • Promotion of Settlement Maruyama District

Fig. 12.1 Structure of local autonomous organizations in study areas

division of autonomous organization. A community center is an organization that conducts various projects, such as education and culture related to the lives of residents, and aims to improve the culture of residents, promote health, social welfare, and culture. Community centers were established throughout the country following democracy after World War II. Before the start of rural tourism, the executives of the Kita district autonomous organization consisted mainly of residents in their 60s, but are now being rejuvenated. Currently, the chairman is in his 50s, and his manager and accountant are in their 40s. In particular, it is noteworthy that the accountant and the member of youth division are migrants, and new residents are involved in local autonomy. In addition to the autonomous organization and the community center, there is a Preservation Society for Thatched Private Houses, which manages vacant houses and operates a folk museum. All residents belong to the preservation society, and the membership is the same as that of the autonomous organization. In addition, the agricultural producer’s cooperative (APC) is organized by 12 households that are farming in the Kita district and accept farming work. The autonomous organization in the Maruyama district has a structure as shown in Fig. 12.1, and there are various departments under the chairman and deputy chairman. The current chairman once lived outside the area, but returned to the area 7 years ago. The deputy chairman also serves as an accountant and serves as a representative of shrine parishioners and a representative of supporters group of temples in addition to executives of the autonomous organization. The structure of the Maruyama district autonomous organization corresponds to the various roles given by Sasayama City. Sasayama City promotes and educates residents about the city’s projects and policies through the autonomous organization, and in some cases, executives of the autonomous organization receive compensation from the city. Looking at the efforts of each department, the elderly person confirming division mainly confirms the safety of the seniors living alone. The health division is mainly responsible for local waste management, and the traffic safety division is responsible for preventing accidents of residents. The agricultural management division is the

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window for responding to the city’s agricultural policies and dealing with agricultural cooperative. There are currently two farmers in the Maruyama district and two members of the agricultural management division. The physical education division prepares and manages the district athletic meet, and the human rights awareness division mainly works on raising awareness of the city’s human rights measures. The gender equality division participates in city training on gender equality and educates residents. The settlement promoter manages vacant house information in the district and respond to migrants.

12.4.1.3

History of Rural Tourism Development

In the 1950s, Miyama-cho flourished in forestry, with a population of over 10,000. However, since the late 1970s, the decline in timber demand and economic growth in urban areas has caused the outflow of population to be noticeable. On the other hand, in the 1980s, Kita area attracted tourists for scenic purposes. In 1989, a local women’s group established a women’s processing group that produces and sells processed foods using local ingredients. In 1992, the “Preservation Society for Thatched Private Houses” was established, and the activities of preserving thatched private houses began under the initiative of residents. In 1993, the Agency for Cultural Affairs designated thatched houses as “Important Preservation Districts for Groups of Traditional Buildings,” and received subsidies for the management of roofs and renovation of houses. In the same year, the “Green Tourism Development Planning Committee” was set up in the former Miyama Town Hall, and the local government started promoting Green Tourism in earnest. In addition, residents of neighboring cities played a central role in establishing the “Association for the Preservation of Thatched Private Houses in the North District,” and in 1994, the “Thatched Private House Preservation Fund” was established. At most about $9000/ year went into the fund, but according to interviews, it is currently inactive. In the same year, a farmer’s restaurant opened in the area, and in 1995, a farm stay was opened using government subsidies. In 2000, “Kayabuki no Sato Co., Ltd. (LTD),” a company that manages women’s processing group, farmers restaurant, and farm stay, was established. It was established with a capital of $30,800, funded by 43 residents (49 people).4 In addition to the restaurants and guesthouses operated by LTD, there are currently three restaurants, one farmhouse, and one bakery using local rice flour, an indigo dyeing studio, and others in Kita district. According to interviews, the number of tourists accepted annually in 2019 is about 230,000. Table 12.1 shows the change in the number of tourists accepted over the past 4 years based on interviews. The number of sightseeing buses received is increasing year by year, which means that the number of travel agency tours is

4

Co. Ltd. means Limited Company, a corporation that could be established until the amendment of the “Companies Act” in 2006. The features of a Limited Company are that its initial capital is about $2800 (3 million yen) or less, the number of employees is 50 or less, and no shares are issued.

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Table 12.1 Changes in the number of tourists in the Kita district (2014–2017) Year 2014 2015 2016 2017

Number of tourists accepted 1,93,104 2,20,736 2,47,012 2,33,127

Number of sightseeing buses 1151 1355 1449 1641

Guide fee 8000 7000 9000 7000

Source: Created based on interviews

increasing. Table 12.1 also shows the change in the annual guide fee, as some tourists provide guides for residents. This guide is also coordinated by “Kayabuki no Sato Co., Ltd.,” and half of the annual guide fee goes to the “Preservation Society for Thatched Private Houses.” The Maruyama district will have only five households in 2000, and local residents will have a sense of crisis in the future of the region. In 2007, a owner of vacant house living outside the region used Hyogo Prefecture subsidies to assess the value of vacant house. Based on this, a city official paid attention to the value of the landscape in the Maruyama district and suggested that vacant house be used as a farm stay. Then, together with the deputy mayor at the time, obtained national and prefectural subsidies, held workshops, and formed consensus among the residents. As a result, three vacant house owners agreed to lend, and three farm stays and a French restaurant were opened. In 2009, three private houses and one storehouse were renovated using government subsidies. In the same year, all the residents became members and established the Nonprofit Organization “Shuraku Maruyama,” and together with the general incorporated association “NOTE” (GIA) established by the city, established the Limited Liability Partnership “Maruyama Project” (LLP) to operate and manage the farmhouse.5 A French restaurant was opened in the renovated warehouse. One of the farmhouses was returned to the owner two years later after the owner returned from another region. The LLP was initially set up with a ten-year deadline, but in 2019 it was decided to extend it. Based on the interviews, about $650,000 was invested in renovations and capital investment. The breakdown consists of 55% of national and prefectural subsidies, 20% of bank loans, 4% of citizen funds, and the rest of vacant house owners’ own expenses. At present, the two farm stays accept a total of about 2000 guests/year. The citizen fund was established by GIA directors and other stakeholders, and returns interest every year.

A general incorporated association is a corporation established under the “Act on General Incorporated Associations and General Incorporated Foundations” and established by two or more employees, it is capable of public benefit service and profit-making enterprise. One of the major features is that surplus profits are not distributed. A limited liability partnership (LLP) is a corporation established under the “Limited Liability Partnerships Act,” features of LLP are low start-up costs and are operated by agreement of the investors. It is also featured by no corporate tax because it is not a corporation.

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12.4.2 China 12.4.2.1

Overview

Beijing is the most urbanized area in China, with nearly 90% of the total population living in urban areas.6 Huairou District is located in the northeast part of Beijing, there are 12 towns and 284 villages in the area. The total area is 2123 km2, and nearly 90% of the area is forest. As of 2018, the total population is 414,000. The highway runs from the center of Beijing and an hour’s drive away. In Huairou District, the change from rural family register to urban family register has been recommended since 2003.7 Huairou District is a region where rural tourism is developing in China, as it has been selected by the Chinese government as a “Leisure Agriculture and Rural Tourism Demonstration County.” Guandi village is located in the northern part of Huairou District, with a total area of 4.82 km2, a total population of 146 (102 of them are over 60 years of age, 30–40 of them are urban or outside family registers), and a total number of households of 58 (about 10 of them are outside family registers). Nearly 90% of the residents have opened farm stays and the main industry is tourism. With the development of tourism, 300–400 people come to work a year. In the Guandi village, it has been reported that the development of tourism has reduced the outflow of young people.8 However, the outflow of young people and the progress of aging are still persistent problems. Furthermore, with the development of tourism, various people are coming from outside, and social structure is changing. Beigou village is located in the northwestern part of Huairou District, with a total area of 3.32 km2, a total population of 342 (82 of them are over 60 years of age, about 50 of them are urban or outside family registers), and a total number of households of 142 (17 of them are outside family registers). Thirteen of the outside family registers are from overseas. Although the population is on a gradual decline, the population is not that aging. Fifteen years ago, the population was about 390, as of 2011, the population was 345, based on interviews. The main industry is agriculture (mainly chestnut cultivation), and most of the income of the residents is from agriculture. The tourism industry is in the process of development, and the number of farm inn increased from 4 in 2010 to 20 in 2015. Also, as mentioned above, the diversification of residents is progressing, and the social structure is changing.

6

Refer to Lin (2015). China has both urban and rural family registers, and rural family registers are not the same as urban family registers. In the past, such a family register system had the purpose of restricting the migration of people from rural to urban areas, and it was difficult to change from rural to urban family registers. In recent years, the Chinese government has been reforming the family register system to reduce the gap between urban and rural areas. In 2014, the Chinese government announced an “National New Urbanization Plan” stipulated that 100 million rural household will have urban families by 2020. In China’s rural urbanization policy, reform of the family register policy is important. 8 Refer to Takada et al. (2013). 7

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Table 12.2 Overview of autonomous organization executives

Guandi village

Beigou village

Village committee Director

Village party branch Secretary

–

Deputy secretary

Deputy director Committee member Director

–

Deputy director – Committee member

– Secretary Propaganda committee member Organization committee member –

Sex (age) Male (57) Male (60) Male (44) Female (53) Male (57) Male (59) Male (55) Female (52)

Duties The head of the autonomy of village Training member of the party Maintain the security, land management, Infrastructure development Promotion of the one-child policy, mediation of disputes The head of the autonomy of village Maintain the security, training member of the party Personnel management Promotion of the one-child policy

Guandi and Beigou village are both selected as “Rural Tourism Priority Villages” and are emphasizing regional development through rural tourism nationwide.

12.4.2.2

Current Status of Autonomous Organizations

In rural China, a “villagers’ committee” has been set up. The villagers’ committee is stipulated in the constitution as an autonomous organization and also plays a part in the functions of the township government. The role of the village committee and the selection of executives are enacted by the “Organization Law of Villagers’ Committee.” The executives of the villagers’ committee are elected by residents and consist of three to seven members. Its role is to coordinate the conflict between residents, promote production activities and economic development of the village, and maintain security, develop human resources, and promote cooperation among residents. One of the major roles of the villagers’ committee is to manage the common property of the village and proposals related to the interests of the villagers, such as the use of common property, will be accepted at the villagers’ meeting and will not be adopted unless more than two-thirds of all villagers agree. Similarly, each region has a branch of the Communist Party of China. The village party branch is in a position to guide and supervise the villagers’ committee, and basically the villagers’ committee needs to follow the guidance of the village party branch. Table 12.2 gives an overview of the executives of the autonomous organization in study areas and their work content. There are four executives of the autonomous organization in the Guandi village. The villagers’ committee is composed of three

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members, a director, a deputy director, and committee member, and the director has overall responsibility for the autonomy of the village. The deputy director is responsible for maintaining the security of the village, developing infrastructure, and managing land. The committee member is implementing the one-child policy (currently abolished) and coordinating the conflict between residents. The village Party branch consists of a secretary and a deputy secretary. The secretary is also the chief executive of the village, concurrently with the director of the villagers’ committee. The deputy secretary not only assists the secretary, but also trains and manages the members of the party. More than half of Guandi village’s income comes from the real estate business. In Guandi villages, the number of migrants and the inflow of diverse workers have increased due to the development of farmhouses, and residents’ troubles have increased. Autonomous organizations are no longer able to cope with such problems. There are four executives of the autonomous organization in Beigou village. The villagers’ committee is composed of three members, a director, deputy director, and committee member, and each role is almost the same as those in Guandi village. The Village Party Branch consists of a secretary, education committee member, and organization committee member. The secretary is also the chief executive of the village, concurrently with the director of the villagers’ committee. The propaganda committee member trains members of the party and maintains security, and organizing committee members are mainly responsible for personnel affairs. In addition, two college student village officials are assigned to assist the secretary (as of 2015).9 The autonomous organization has real estate income and earns about $140,000 annually from foreign immigrants. According to interviews, before the start of rural tourism, the autonomous organization was in debt due to a deterioration in the financial situation. In addition, an increase in problems among residents was also an issue.

12.4.2.3

History of Rural Tourism Development

Guandi village is said to be the earliest area in Beijing where farm stay began, and in 1993 the farm stay started spontaneously. In Guandi village, the Great Wall of China crosses the village, but previously not so many tourists had been visiting. In 1993, the village became a national natural scenic area, increasing the number of tourists visiting the village. And it is said that the local residents invited tourists to the house and welcomed them, which was the beginning of the farm stay. Since then, the number of farm stays has increased due to the government’s infrastructure development. Particularly, in 2004, Beijing City developed large-scale infrastructure for urbanization. As a result, private houses were renovated, roads and parking places, water supply and sewage systems, and rivers were improved. In 2006, more than

9

See Chap 13 for information on college student village official.

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80% of the village’s total income came from tourism, and the average annual income per person reached about $6000. On the other hand, competition between farm stays intensified and the relationship between residents deteriorated. In order to solve this problem, 22 farm stays invested about $5000 (RMB 33,000) in 2006 to establish a farmers’ specialized cooperative (FSC). As a result, the aim was to build a system in which local residents systematically engage in rural tourism. Currently, in Guandi village, 53 households run farm stays. In addition, households that do not run farm stays are all elderly households, who help nearby farmers and sell souvenirs. In Beigou village, several households started farm stays around 2005, which was the beginning of rural tourism in the village. Beigou village is also located at the foot of the Great Wall of China and was visited by tourists before work started on rural tourism. After that, it was decided that Beigou village and the surrounding area would be developed as “International Cultural Villages,” and full-scale rural tourism was started under the initiative of autonomous organization. In 2009, a limited liability company (LLC) was established, led by an autonomous organization, funded by a village reserve of about $10,000 (RMB 700,000) and a village common property of $190,000 (RMB 1.3 million).10 The college student village official at the time played a major role in setting up the company, and for the first few years he was involved in management as president. Currently, the secretary of the Village Party Branch is running as president. Initially, the LLC operated restaurants and lodging facilities, but does not currently have a lodging business. The number of farm stays was four at the time of the survey in 2011, but increased to 20 at the time of the survey in 2015.

12.5

The Role of Community-Based Rural Tourism in Local Autonomy

12.5.1 Japan 12.5.1.1

The Relationship Between the Autonomous Organizations and Tourism Organizations

First, the organizational structure and operation of the tourism organization (LTD) in Kita district will be summarized. Looking at the organizational structure, it consists of a board of directors, a board of auditors, and seven departments (Fig. 12.2). There are four full-time employees, all of whom are local residents. About 20 part-time A limited liability company is a corporation established based on the “Registration of the People’s Republic of China on the Administration of Company Registration.” A limited liability company is a corporation established based on the “Registration Management Ordinance of the People’s Republic of China.” It has features such as being established with 50 or fewer investors and not issuing shares.

10

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Relationship Between Community-Based Tourism and Autonomous. . .

Tourism Organization (Limited Company)

Board of Directors • Representative Board of Director Auditors • Vice President • Director General Affairs

213

Autonomous Organization Preservation Society

Donation

Autonomous Organization Dividend Local Government

Local Residents

Vacant House

Investment

Incorporation

Farmer’s Restaurant Investment

Farm Stay Women’s Processing Group Souvenir Shop

Folk Museum APC

Gallery and Cafe Sightseeing Guide

Farmwork

Nonprofit Organization

Tourism Organization (Limited Liability Partnership) Management

Consignment

Kita District

General Incorporated Association

Farm Stay Maruyama District

Maruyama District

Fig. 12.2 The relationship between the autonomous organizations and tourism organizations

workers are mainly local residents, and some of them are also outside the region. The board of directors is composed of eight members, one representative director, one vice president, and six directors. Of the directors, employees are the representative director and vice president. Others are organized by local residents, such as farm stay operators. Looking at the age of directors, two directors are in their 40s, four are in their 50s, and two are in their 60s. The two members of the audit committee are in their 40s and 70s. The two members of the audit are those in their 40s and 70s. General affairs are handled by the representative director. The businesses it operates include farmer’s restaurants, farm stay, processing and sales of specialty products (women’s processing group), souvenir shops, and gallery and cafe. Specialty products processing was once reported to have annual sales of over $180,000. However, the business scale is now shrinking due to changes in tourists and a fall in sales.11 There are six resident guides, and the annual guide fee is as shown in Table 12.1. Half of the annual guide fee is donated to the Preservation Society for Thatched Private Houses, which is used to manage the folk museum. The farmer’s restaurant, farm stay, gallery and cafe, and souvenir shop buildings are owned by the city, and the large equipment used there is at the expense of the city’s finances. According to interviews, annual sales in 2019 were around $1.06 million, with farmers and souvenirs accounting for a large percentage of sales. Spending was about $1.07 million and has been in the red this year. In addition, the ingredients used in the farmer’s restaurant are produced on farmland inside and outside the area, with about 2 ha in the northern area and about 2.6 ha in the neighboring area. 11

Refer to Nakamura (2003).

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Agricultural work is outsourced to the agricultural producer’s cooperative in the district, and a subsidy is received from the local government for the cost of agriculture. Since almost all residents of the autonomous organization are investors in the tourism organization, this means it is necessary to listen to the voices of local residents. For this reason, the judgment of business activities is affected to a certain extent by the intentions of local residents. Next, the organizational structure and operation of the tourism organization (LLP) in the Maruyama district will be summarized. The tourism organization consists of a GIA established by the city and Nonprofit Organization (NPO) established by all residents (Fig. 12.2). The GIA is responsible for receiving reservations, transmitting information, and managing, while the NPO manages buildings on-site and provides services to tourists. Therefore, the local residents are not involved in the management and the salaries of the employees are paid by the GIA. On the other hand, the members of the NPO are the same as those of the autonomous organization because the NPO was established with the investment of all residents. Therefore, the NPO is an incorporation of an autonomous organization. Vacant house owners lend to NPO free of charge, and GIA works with the local government to obtain subsidies and renovate vacant houses. And now it operates two farm stays. There is only 1 full-time employee, and when a farm stay is booked, he calls 5 households in the area to eat and clean. In this case, the salary of the staff is about $9 (1000 yen) per hour, and the salary per person is $280–370 (30,000–40,000 yen) per month. GIA and NPOs split their sales in half and have been used to rebuild buildings and repay bank loans. As a result, the NPO did not get any sales, but now the repayment to the bank has ended and the NPO will get sales in the future.

12.5.1.2

The Role of Community-Based Rural Tourism in Local Autonomy

Twenty years have passed since starting CBT in the Kita district, but population decline has not stopped in the district; however, five households have migrated during this time, and migrants have become the core of autonomy now. The background to this is that it is thought that increasing the value of the region by increasing the name recognition and preserving the landscape through CBT also play a certain role. Members of the tourism organization have also seen successful alternation of generations over the past 20 years, and only the representative director and vice president have been involved since the start. Members of the autonomous organization are also undergoing alternation of generations, and migrant children’s households are returning from urban areas to engage in tourism at home. From this, it is thought that CBT’s efforts are not small and have led to the development of young people who will be responsible for the region. CBT activities are creating employment in the region, which is thought to have led to a suppressing in population

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outflow. Therefore, it is considered that CBT activities are suppressing the decline of autonomous functions due to depopulation. In addition, farming is conducted on farmland that had no longer been cultivated due to the aging population, and the area of farmland is expanding year by year, and its range is spreading outside the region. This eliminates abandonment of cultivated land and contributes greatly to maintaining the landscape of the district. In addition, a part of the profits is used for preserving thatched private houses, and a system is being constructed to use the profits obtained from sightseeing to preserve the local landscape. The number of thatched houses has increased in the last 20 years, which has also increased the value of district. Ten years have passed since the start of CBT in the Maruyama district, and its population has grown from 19 to 22 and families from 5 to 7. For this reason, the further decline in autonomous function due to the progress of depopulation is suppressed to a certain extent. In addition, the current autonomous organization chairman has returned to the district since the CBT started, and it can be said that the return of at least one core human resource is great for a small district. In addition, four vacant houses have been renovated as a result of LLP’s efforts. In recent years, many volunteers have been working on preserving the forest landscape and renting farmland and doing agriculture from urban areas. As a result, while there was 2.1 ha of abandoned cultivated land before CBT was tackled, now all have been eliminated. These initiatives have contributed greatly to maintaining and improving the local landscape. In addition, CBT creates jobs in the district. The size of the remuneration is not enough to sustain a living, but adds to the income of local women. However, the Maruyama district has received substantial subsidies, and it takes more time to evaluate the CBT approach.

12.5.2 China 12.5.2.1

The Relationship Between the Autonomous Organizations and Tourism Organizations

First, the organizational structure and operation of the Tourism Organization (FSC) in Guandi village will be summarized. Looking at the organizational structure, it consists of 22 joint-investment of farm stays, consisting of a board of directors, a board of auditors, and other members. The board of directors consists of one president and two vice presidents, and the board of auditors consists of one head of auditors and two auditors (Fig. 12.3). The main activities of FSC include arranging tourists at farm stays, establishing service standards, sharing information among farm stays, and developing human resources. Regarding tourist arrangements, when there are many tourists, the president arranges tourists for each farm stay, and the arrangements are extended not only to all farm stays in the area but also to neighboring areas. According to interviews, there

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Tourism Organization (Farmers’ Specialized Cooperative

Autonomous Organization (Village Committee)

Board of Directors • President • Vice Presiden Board of Auditors • Head of Auditor • Auditor

Guidance and Support

Other Members

Tourism Organization (Limited Liability Company) Board of Directors 4 people

President

Autonomous Organization 4 executives

Secretary Investment

Retail Business

Restaurant Business

RCSC Proceeds

Guandi Village

Fig 12.3 The relationship between the autonomous organizations and tourism organizations. Source: replicated from Takada et al. (2016)

are more than 100 farm stays outside the area that are associated with the FSC, and these farm stays sympathize with the FSC’s efforts and participate in various events organized by cooperatives. When arranging tourists, a fee is collected from the farm stays. But it is also a small amount, about $500 a year. These fees will be used to fund FSC sponsored events and human resource development. The service standards are rules for unifying signboard designs, meal menus, their prices, and clothing. All farm stays related to the FSC operated are based on these standards set by the FSC. In addition, in cooperation with farmers outside the area, it not only purchases food ingredients but also outsources the acceptance of tourists who experience agriculture. The operation of the organization is decided by the board of directors, who proposes the agenda, and by a majority vote of all members. Looking at the operation of the organization, the board of directors proposes proposals to all members, and this is determined by a majority vote of all members. As for business income, only the handling fees as mentioned above, and no economic business is currently conducted. From this, it can be said that FSC is an organization like a kind of farm stay cooperative. The FSC was established mainly by the president and has little involvement with autonomous organizations. Autonomous organizations provide guidance on relevant policies and systems and serve as a point of contact for local government subsidies. Subsidies to farmers’ homes include subsidies for set up funds and costs for bedding. These subsidies are made through autonomous organizations. Next, the organizational structure and operation of the tourism organization (LLC) in Beigou village will be summarized. Looking at the organizational structure, there are the board of directors and the president and two businesses. LLC in Beigou village was established under the leadership of an autonomous organization. The board of directors is composed of four executives of the autonomous organization, and the president is a secretary of village party branch. For this reason, LLC is a tourism organization that is directly managed by autonomous organizations. As shown in Fig. 12.3, when establishing an LLC, an autonomous organization first

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establishes a Rural Community Share-holding Cooperative (RCSC) and then establishes the LLC with the investment of the RCSC.12 This is because the establishment of an autonomous organization company is prohibited by law. Therefore, LLC sales formally enter the autonomous organization through a RCSC. There are ten employees in restaurants and retail shop, one of whom is an outside resident. In addition to operating restaurants and retail shop, the company uses the abandoned cultivated land in the village and neighboring areas to produce ingredients for restaurants and to provide tourists with an agricultural experience. And, there are experiences of processing agricultural products, and the residents who guide the tourists are paid. In 2014, its annual business revenue was about $300,000 (RMB 2.1 million), most of which came from restaurant. In addition, the stakeholders are all residents because LLC are established with village common property. As a result, a part of sales is distributed to all residents every year, and in 2014 about $60 (RMB450) per person was paid to residents 18 years and older.

12.5.2.2

The Role of Community-Based Rural Tourism in Local Autonomy

Looking at the CBT in Guandi village, many workers came in and out of Guandi village with the development of rural tourism, and various troubles/issues/occurred. Originally, autonomous organizations are not subject to management of residents who do not have a family register in the village, and when such troubles occur, they will call the police to resolve them. However, for the FSC, when the police are called, the image of the area is degraded, and troubles with workers are basically handled by cooperatives. There is also a plan to install security cameras in the future, contributing to regional trouble coordination and security maintenance. As for human resource development, the FSC has been conducting training to develop farm stays. Furthermore, the FSC was organized to promote cooperation between farm stays, and it can be said that it has contributed to promoting cooperation between residents. Based on this, the FSC was established separately from the autonomous organization in Guandi village by working on CBT, and FSC plays a part in the role of the autonomous organization. Therefore, it can be said that FSC complements the functions of autonomous organizations. Next, looking at the CBT in Beigou village, the local government established LLC in response to a tourism development plan for the surrounding area in Beigou village and aimed to develop tourism in village by actively conducting business activities. LLC is also actively engaged in human resource development, including training for tourists and other services. Agriculture using abandoned cultivated land inside and outside the village not only promotes production activities, but also

12 Rural Community Share-holding Cooperative is a corporation that is established based on various common properties of the village and is paid out according to the investment amount.

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contributes to the management of common property. In addition, conducting business activities has improved the financial situation of autonomous organizations. Based on this, an autonomous organization established LLC in Beigou Village to work on CBT. This LLC plays a part in the role of the autonomous organization.

12.6

Conclusions

This paper has focused on rural tourism in Japan and China. What is common to the regions discussed in this paper is that an autonomous organization has launched another corporation to develop rural tourism. The type of corporation depends on the environment in which the region is located. What the Kita and Maruyama districts have in common is that depopulation and aging have progressed, and the sense of crisis among residents has increased. In addition, residents on the outside felt the value of the landscape, which led to the development of tourism utilizing the local landscape. The difference between the two districts was the presence of human resources in the management of the tourism organization in the district. In the Maruyama district, since there was no such human resource, a method of outsourcing management was adopted. The tourism organizations in the two districts have a close relationship with an autonomous organization, but make decisions as separate organizations. These efforts have led to the preservation of local landscapes and the acquisition of human resources for autonomy in areas facing depopulation. In addition, traditional autonomous organizations, such as preserving farmland and forests, are becoming unable to respond to aging of the population. In such a situation, tourism organizations play a part in the activities of autonomous organizations. On the other hand, in the villages of Guandi and Beigou, the theme was not how to protect the community like in Japan but how to become economically rich from poor living. In Guandi village, each inhabitant is actively engaged in tourism and has established a tourism organization, but the scope extends to outside the village. In this way, the initiative was expanded beyond the village because there was little involvement of autonomous organizations. On the other hand, Beigou village needed to develop tourism in a short period of time due to the “tourism development plan.” Therefore, the autonomous organization needed to exert strong leadership, and led the autonomous organization in rural tourism. Beigou village differs from the other three cases in that the decision-making of the autonomous organizations and tourism organization is almost the same. The villages of Beigou and Guandi are close to big cities and face changes in social structures such as diversification of residents. Until now, China’s autonomous organizations have been tasked with managing only residents with a family register in the village and managing community common property. However, the required roles are now diversifying and it is no longer possible to respond to them. The tourism organizations in the two villages are hosting a diverse population and

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managing these people through tourism. In addition, tourism organizations are playing a part in solving issues that autonomous organizations cannot address. In this paper, advanced cases of CBT in Japan and China are discussed and analyzed in detail. It cannot be denied that the government has provided a variety of support in the background of these advanced cases. Also, in Japan, although CBT’s efforts can alleviate depopulation in the region, they have not reached a fundamental solution. In China, large-scale financial support has been provided for the development of rural tourism, and as a result, the unique landscape of the region is being lost. How to evaluate these cases needs further discussion.

References Eguchi S (2011) The reorganization of actors and governance in rural areas of China: the trend of “village government official” policy. Shimane J Policy Stud 21:93–104 Lin J (2015) New urbanization in Beijing and metropolitan area. Xueyuan Publishers, Beijing Miyazaki T (2006) Agriculture, rural areas and green tourism in Japan and Asia: regional management, experience-oriented, urban and rural exchange. Showado, Kyoto Nakamura T (2003) The social roles of agribusiness with local traditional food: a case study of the Kita locale of Miyama town. Kyoto Agric Econ Pap Kobe Univ 36:61–68 Oshima K (2015) Reorganization of the township governments and villagers’ committees in Chinese rural districts, St. Andrew’s Univ Econ Business Rev 57(1):1–18 Takada S, Miyazaki T, Wang Q (2013) Types of nongjiale management and the role of farmers’ cooperatives in urbanizing areas: a case study of Beijing Huairou district’s Guandi village. J Rural Prob 49(2):336–341 Takada S, Nakatsuka M, Wang Q (2016) Decline in the function of the basic rural organizations and the role of rural tourism organizations in urbanizing areas in China: a case study of BeijingHuairou District’s Guandi and Beigou Villages. J Rural Prob 52(3):178–183 Tsurumi K, Kawata T (1989) Endogenous development. University of Tokyo Press, Tokyo Yan S (2010) The Xiang-Cun organization in rural China: conversion of their structure and function, St. Andrew’s Univ Bull Res Inst 35(2):95–120

Chapter 13

Characteristics of Young People on Employment and Settlement in Rural East Asia: A Case of the Rural-Regeneration Supporters Project Shinji Takada Abstract This study first summarizes the policy development and previous studies of the rural-regeneration supporters project in Japan and China. Furthermore, a questionnaire survey was conducted with active College Student Village Officials and Special Post Teachers, who are rural-regeneration supporters in China. From the results, a quantitative analysis was undertaken mainly on the following three points. The first is on the kind of young people willing to work in rural areas. Secondly, what kind of young people have intentions of settling in the area, and what kind of persons would like to have a continuous relationship with the area even after leaving the region. Thirdly, points regarding the increased intention of settlement and continuing involvement with the region of rural-regeneration supporters were considered. Keywords Rural-regeneration supporter · Local vitalization cooperator · Special post teachers · College student village officials · Intention of settlement

13.1

Introduction

In Japan, the population is declining and aging in rural areas, and securing human resources to maintain and strengthen local autonomy is an issue. On the other hand, in urban areas, attention has been paid to the rich natural environment in rural areas against the background of the growing desire for quality of life. Such a tide is called “Denen Kaiki” (Return to the Countryside) and is attracting attention from the viewpoint of securing leaders in depopulated areas. The Ministry of Agriculture, S. Takada (*) Graduate School of Agricultural Science, Kobe University, Kobe, Hyogo, Japan e-mail: [email protected] © Springer Nature Singapore Pte Ltd. 2020 N. Yasunaga, N. Inoue (eds.), Farm and Rural Community Management in Less Favored Areas, New Frontiers in Regional Science: Asian Perspectives 44, https://doi.org/10.1007/978-981-15-7352-1_13

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Forestry and Fisheries’ “Annual Report on Food, Agriculture and Rural Areas (2014)” points out that there is growing interest in rural areas, especially among young people living in urban areas, and the spread of lifestyles involving going back and forth between urban and rural areas. These are called “Denen Kaiki.” The focus of the discussion on “Denen Kaiki” in Japan is the growing interest in rural villages and willingness for young people in their 30s and 40s to migrate. Against this background, the Japanese government has been actively attracting urban residents to promote immigration and settlement. In China, new graduates have difficulty finding employment in urban areas. Behind this is an increase in the number of new graduates. According to the Ministry of Education, the number of new graduates is increasing every year, reaching 8.34 million in 2019, but many will seek employment in coastal areas and large cities. In many rural areas, the shortage of human resources is an issue, and the Organization Department of the Communist Party of China Central Committee has pointed out the issue of aging of autonomous organizations (village committees, village party branches).1 For this reason, the central government is encouraging veterans, new graduates, and young people to find employment and start a business in rural areas. However, many researchers have pointed out that young Chinese people are not active in rural employment (Ma and Liu 2015; Yang and Li 2018). On the other hand, similar to Japan, increasing interest in agricultural life among urban residents and the existence of young people who migrate from urban to rural areas for agriculture have been reported. However, attention in China is not very high.2 In this chapter, the rural-regeneration supporters project is a project in which various types of outside persons migrate to rural areas and work for local autonomy and revitalization of local industries.3 Currently, in Japan, mainly Local Vitalization Cooperator projects (LVC) and in China, College Students’ Volunteer Service Western Program (CVSW), Three Supports One Assistance Project (TSOA), Special Post Teachers (SPT), and College Student Village Officials Projects (CSVO) are being developed as national policies. Based on the above, in this paper, first, the policy development of the ruralregeneration supporters project in Japan and China is summarized. Next, the research on settlement, retention, and the continuous relationship with the region after the term of rural-regeneration supporters was completed was arranged. Then, based on the accumulated research of rural-regeneration supporters in Japan, where research is relatively advanced, and a questionnaire survey for workers in the ruralregeneration supporters project in China was conducted. Based on the results, the characteristics of young people heading to rural areas will be considered. 1

Refer to Organization Department of the Communist Party of China Central Committee (2012). The August 2013, the Journal “Beijing Agriculture” shows the growing needs of urban residents for agriculture, and an increasing number of visitors to agricultural experiences, and in urban areas the number of community farms is increasing. On October 7, 2018, the Newspaper “Kunming Daily” reported that in Kunming, Yunnan Province, young people who moved from urban to rural areas farmed. 3 Refer to Odagiri (2013). 2

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Specifically, the following two issues will be analyzed. First, in China, the kind of young people actively employed in rural areas will be analyzed. Second, what kind of rural-regeneration supporters will settle, commit to be retained, or continue involvement with the region after the term of office ends will be analyzed. It also considers points to be noted for facilitating settlement and staying. It also considers points of attention for promoting settlement, retention, and continuing involvement with the region.

13.2

Policy Development and Current Situation

In Japan, the rural-regeneration supporters project started in 1996 as a national project. In 1996, the Ministry of Land, Infrastructure, and Transport (MLIT) started the “Community Development Internship” Project. The “Community Development Internship Project” aimed to raise the awareness of young people moving to rural areas and to acquire new perspectives by accepting young people in the region. The project recruited young people living in urban areas, mainly students, between the ages of 20 and 35, and dispatched them to rural areas. The activity period was 2 weeks to 1 month, and engaged in activities related to community regeneration and local industry. The project under the jurisdiction of the MLIT was completed in 1998, and nine locations and 30 people were dispatched in 2 years. Then, in 2000, the Experienced person of the project took the lead, restarting the project and continuing to this day. In 2008, the Ministry of Internal Affairs and Communications (MIC) started a “Community supporter” project. In the “Community supporter” project, people who are generally familiar with the local situation and have the know-how of village autonomy are selected. Therefore, many people also serve as chairman of the autonomous organization, but it is possible to appoint someone outside the region. Community supporters liaise with local governments to look around the village and understand the situation. As of 2019, 348 municipalities have accepted and 5061 people are active. Of these, 3320 are concurrently serving as chairman of the autonomous organizations. In the same year, the Ministry of Agriculture, Forestry and Fisheries started a “Squad Working in the Countryside” project. The aim is for urban youth to experience living in rural areas and to develop human resources who will be the leaders in community development in the future. This project recruits people who are interested in rural activities from cities and dispatches them to local NPOs and agricultural corporations, for a term of up to 3 years. In 2016, it was integrated with the “LVC” project. In 2009, MIC started the “LVC”. LVC are recruited by local governments, and the central government provides financial support to those local governments. In fact, there are various organizations that accept LVC on-site, and in addition to the administration, there are local companies and autonomous organizations and so on. The term is up to 3 years. As of 2018, 1061 municipalities have accepted and 5530 people are active. By 2024, it is aiming to reach 8000. According to the

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announcement of MIC, about 60% of the LVCs whose term has expired have settled in the area so far. In addition, there are “Reconstruction Supporters” for disaster recovery under the jurisdiction of MIC and “Local Vitalization businessmen” who accept employees of private companies in metropolitan areas in rural areas for a certain period of time. However, its size is small, so only the introduction is given here. In China, the State Council issued a “Notice of Opinion on Further Promoting Job-hunting Activities for College Graduates” in 1999 to encourage university graduates to work in rural areas and encouraged that they engage in education, agriculture, medical promotion, and poverty reduction. And in the future, it encouraged them to work at the township government agency. And in the future, it encouraged them to work at the local government agency. In response to this, in 2002, four departments of the central government such as the Ministry of Education issued “Opinions Regarding Further Reform of the Employed System for College Graduates” and encouraged college graduates to work in local elementary and junior high schools, and further encouraged people from developing areas in the east to poorer western areas to engage in education, agriculture, health care, and poverty reduction. It also recommends them to remain in the region and work in local government departments in the future. Following that trend, CVSW started in 2003. CVSW is for college students and graduate students who are currently enrolled to go to the poor areas mainly in the west: the first is educational support at elementary and junior high schools, the second is poverty reduction and agriculture promotion in departments such as agriculture, forestry, and livestock, the third is medical hygiene in departments and clinics of local governments, the fourth is the work related to the daily lives of residents in local government departments, the fifth is to join the youth league of the party at the local level to promote entrepreneurship and volunteering, and the sixth is to reduce poverty and promote education and agriculture in Uygur and Tibet. The term of office is 1–3 years, and it is said that graduates from the western area will be selected with priority. In 2019, 20,000 people were recruited. In 2006, TSOA started. TSOA is a project in which college graduates go to rural areas in poorer western areas to support education, agriculture, sanitation, and reduce poverty. Especially in recent years, emphasis has been placed on dispatching to poor areas to ensure poverty reduction and agricultural promotion. Since 2006, 20,000 people have been dispatched each year for 5 years. In 2019, 27,000 people were recruited. The term of office is 2–3 years. In the same year, SPT also started, and dispatched college graduates who mainly studied education, focusing on elementary and junior high schools in rural areas of the ethnic regions in the Midwest. The term of office was 3 years, with the aim of sending 100 college graduates to one prefecture or city and 3–5 college graduates to one school. In 2019, 100,000 people were recruited. CSVO started in 2008, and over the five years since then, 20,000 people have been dispatched each year. CSVO were dispatched to the village party branches and the village committees (autonomous organization) and served as secretaries and chief assistants. CSVO aim was to change the values of college graduates regarding

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employment and to promote employment and entrepreneurship in rural areas. The term of office was 2–3 years, and after the term ended, the aim was to become an executive, such as the village secretary or deputy secretary. In 2010, the Organization Department of the Communist Party of China Central Committee (ODC) announced that by 2012, the CSVO would be 200,000. In 2012, six divisions including ODC announced that by 2015, CSVO will be dispatched to half of the villages in the country. After that, it was announced that the goal would be to dispatch two CSVOs to each autonomous organization within a period of 3–5 years. Since 2014, it has been shown that the CSVO will be integrated with the Selected Graduates system that is dispatched to rural areas in order to train executives of civil servants, and the recruitment of CSVO has been suspended gradually. From the above, in Japan and China, various rural-regeneration supporters project has been implemented so far. The purpose of the rural-regeneration supporters project in Japan is to respond to the progress of depopulation and aging of rural villages and to promote “Denen Kaiki.” On the other hand, in China, how to send human resources in urban areas to rural areas has been an issue in order to cope with the shortage of human resources in rural areas. In both cases, it was ideal that these human resources would continue to remain in the area after the term of office. Under such circumstances, Japan is focusing its efforts on entrepreneurship support for people whose term of office has expired because there are few employment opportunities in the region. On the other hand, in China, it is necessary to raise the interest of young people to work in rural areas, and the preferential measures for participating in the rural-regeneration supporters project have been enhanced. Specifically, having experience working in the rural-regeneration supporters project has provided assistance for graduate school examinations, public servants, recruitment of stateowned enterprises, and repayment of tuition loans. And through this project, the central government is trying to secure and develop human resources who work in rural areas. In this paper, LVC in Japan and CSVO and SPT in China among the diverse rural-regeneration supporters project in both countries will be considered. The reason for this is that LVC is the most popular rural-regeneration supporters project in Japan, and there is also accumulated research. On the other hand, in China, it is not easy to conduct a survey in poor areas, and CSVO that are active nationwide and SPT that are active in elementary and junior high schools, are relatively easy to approach and surveys are possible.

13.3

Literature Review

First, in Japan, LVC is also a migration policy from urban to rural areas, and many researchers have focused on how to promote LVC settlement. Based on this, discussions on system design and LVC acceptance system have been actively conducted. Eventually, they began to focus not only on “settlement” but also on

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maintaining their relationship with the region even if they lived outside the region after their term of office ended. Shibazaki and Nakatsuka (2017) positively analyzed the psychological relationship between LVC workers and local communities from a questionnaire survey of active LVC workers. As a result, it was revealed that people who are proud of their relationship with the local community and local residents, and people who have emotional feelings toward the community and local residents, have higher intentions of settlement. It was also clarified that the higher the age, the higher the intention of settlement. It has also been clarified that the more people feel that they have mental and technical support in their activities, the higher their attachment to the region and their residents, and the higher their intention of settlement. In addition, Shibazaki and Nakatsuka (2016a) conducted research focusing not only on the settlement of LVC workers in the region but also whether they would have a continuous relationship with the region even if they live outside the region after their term ends, and the behavior and psychological characteristics of former LVC workers who continue to be involved in the region even if they live outside the area are analyzed. It has been reported that LVC workers who have completed their term of office have a wide range of relationships with the region, such as not only visiting the region but also disseminating information about the area, creating leaflets used at local events, purchasing agricultural products, etc. Under such circumstances, it is suggested that there is a possibility that LVC workers have a consciousness of contribution to the region, pride and attachment to the region and residents, and continuous involvement with the region. In addition, Shibazaki and Nakatsuka (2016b) considered what kind of intentions LVC workers have for their future way of life from a questionnaire survey of active LVC workers. From that, the lifestyle image of LVC workers was classified into four types. First, there are two types of people with high intention of settlement: “Rural settlement type” and “Rural base type.” “Rural settlement type” refers to a type that has a low intention to have a base in another region and wants to continue living in a rural area. “Rural base type” is the type of people who live in rural areas but want to have bases in other regions and live while moving back and forth. Also, there are two types of people with low intentions of settlement: “Urban base type” and “Outside rural settlement type.” The “Urban base type” is those that have a low intention of settlement in rural areas, but want to have multiple bases while living in urban areas. The “Outside rural settlement type” is a type that does not have multiple bases and wants to continue living in a specific place in the urban area. From this, it can be expected that types other than the “Outside rural settlement type” will have a continuous relationship with the region. In other words, as Shibazaki and Nakatsuka (2016a, b) show, young people’s lifestyles are diversifying, and it is necessary to consider the relationship between rural-regeneration supporters whose term of office has expired, and the community based on this. In other words, it is necessary to pay attention not only to the intention of settlement but also to the intention regarding continuous involvement with the region. In Japan, it is recognized that LVC workers need to build a support system that takes into account the diverse lifestyle needs of young people.

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On the other hand, in China, there have been many studies focusing on the intentions of college graduates to work in rural areas and whether or not ruralregeneration supporters will continue their current work after their term ends (Called “Retention” here), but there are not many empirical studies. Empirical studies of university graduates’ willingness to work in rural areas include Lou and Guo (2008), Yang and Li (2018), and Ma and Liu (2015). According to these studies, it is said that individual attributes such as university specialty, educational background, birthplace, treatment such as salary and welfare, addition of points for public servant recruitment and graduate school entrance examination, evaluation by society and surroundings, individual motivation for growth, the experience of practicing in rural village affect the employment of college students in rural areas. Regarding educational background, it is revealed that the lower the educational background, the greater the tendency toward rural areas. This is thought to be due to intensifying competition in employment in urban areas. As for university specialties, students who have studied agricultural science are more likely to find employment in rural areas than students who have studied other specialties. In addition, it is clear that people from rural areas are more likely to go to rural areas than those from urban areas. Han et al. (2016) empirically analyzed the CSVO workers’ intention of retention. Here, it is clarified that gender, years of work, presence or absence of children, educational background, job satisfaction, support from the government and family are related to intention of retention. Regarding the presence or absence of children, it is clear that people with children tend to leave rural areas after their term of office ends because of differences in educational environments for children in urban and rural areas in China. In addition, it is suggested that it is important to improve the work environment, such as supporting others at work. Liu et al. (2013) analyzed job satisfaction of SPT workers. Here, a survey in Nanyang City, Henan Province reported that job satisfaction of SPT workers was low. Reasons for this include poor equipment environment, a large amount of work due to lack of teachers, few opportunities for training and self-improvement, and lack of support from the schools and governments to which they belong. It has also been reported that elementary schools have more work than junior high schools, and that SPT workers who are assigned to elementary schools tend to be less satisfied. Cai and Yan (2018), Wang et al. (2018), and Pu et al. (2019) empirically analyzed the intention of retention. Cai and Yan (2018) revealed that SPT workers in ethnic minority areas tend to stay less than in other areas. It has been pointed out about the characteristics of people with low intention of retention are that they have a low sense of belonging to society and feel lonely, dissatisfied with their salaries, and that they feel the gap between their original expectations and reality (reality shock). Wang et al. (2018) said that the place of birth, age, evaluation of work, salary, work volume, adaptability to the region, etc., will influence the intention of retention. Regarding the place of birth, it was revealed that it is easier for the worker from the local area to stay. With regard to age, the retention rate for those over 35 tends to decrease, which may be related to the above-mentioned problems of children’s

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education. Pu et al. (2019) analyzed what types of SPL workers would adapt to the area. These studies also point out the importance of improving the work environment. In particular, Shibazaki and Nakatsuka (2018), who researched CSVO, pointed out that the reality shock of local support personnel has a major impact on employee turnover. It is pointed out that not only the efforts of the workers themselves but also the importance of consulting with others in overcoming the reality shock.

13.4

Methodology

13.4.1 Data Collection Method The following questionnaire was prepared for the analysis of this study. The questionnaire includes (1) 15 items regarding individual attributes, such as sex, ethnicity, age, and the situation of living with family members, etc., (2) 4 items regarding work summary, such as job category, work area, etc., (3) 12 items regarding reasons for aspiration, (4) 12 items regarding work and living environment, such as the presence or absence of support from the workplace or the government, etc., (5) 5 items regarding future prospects after the term ends, such as intention of settlement and intention of continuing involvement with the region, it is composed of a total of 48 items. Questions (3), (4), and (5) were asked on a scale of 1–5.4 Regarding the method of conducting the questionnaire, a questionnaire created on the Chinese survey site “Wènjuànxīng” and “WeChat” was used to call a group of rural-regeneration supporters and related parties throughout the country. The questionnaire was conducted from January 14 to 22, 2020. The survey targets are active CSVO and SPT that are active all over the country.

13.4.2 Method of Analysis To begin with, the first subject of this paper is what kind of young people are actively working in rural areas in China. In order to analyze this, a logistic regression analysis was performed using the answer to the question “ Would you like to work in a rural area?” (intention of rural employment) as the explained variable, and then individual attributes such as gender, age, and birthplace, etc., as the objective variables. The second subject is what kind of rural-regeneration supporters should be required to settle, achieve retention, or continue involvement with the region after the term of office. In order to analyze this, a logistic regression analysis was

4 The five-point scale was asked as follows. 5: Strongly applicable, 4: Applicable, 3: Neutral, 2: Not so Applicable, 1: Not Applicable at all.

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performed using the answer to the question “Would you like to remain in the area after the term ends” (intention of settlement) and “ Would you like to continue involvement with the region even after leaving the area after the term of office ends?” (intention of continuing involvement with the region) as the explained variable, and then individual attributes, reasons for aspiration, and work environment as objective variables. Logistic regression analysis is commonly used to predict or explain the dependent variable. In this study, binomial logistic regression analysis is performed. Specifically, we used qualitative variables such as “Yes” and “No” as the dependent variables, and the explanatory variables as binary with “Yes” and “No.” In the analysis, variance inflation factor was calculated considering “multicollinearity” that the analysis becomes unstable when the correlation coefficient between explanatory variables is high. Generally, it is said that variance inflation factor is preferably 10 or less. The third subject is to consider the points of attention in order to promote the settlement, retention, and continuing involvement with the region of ruralregeneration supporters. In order to analyze this, partial correlation analysis was performed with the intention of settlement, intention of continuing involvement with the region, and the reason for aspiration, living, and working environment. The partial correlation analysis shows the strength of correlation between two variables when the influence of a certain variable is removed. Here, the effects of variables other than the two variables of interest were removed. As a result of the analysis, it is determined that the correlation coefficients of 0.0–0.2 are uncorrelated, 0.2 to 0.4 have weak correlation, 0.4–0.6 have correlation, and  0.6–0.8 have slightly strong correlation, 0.8–1.0 have a strong correlation. The analysis of the questionnaire used R 4.0.0.

13.5

Results and Discussion

13.5.1 Results 13.5.1.1

Attribute of Questionnaire Answers

The questionnaire was conducted for CSVO and SPT workers who are active in various parts of China, and a total of 159 people responded. Table 13.1 shows the attributes of the respondents. First, looking at sex, 67 (42.1%) were males and 92 (57.9%) were females. It has been pointed out that the proportion of women is increasing as a characteristic of college graduates heading to rural areas, and it can be said that this situation is reflected.5 The majority of ethnic groups are Han, but minorities also account for

5

Refer to Ma and Liu (2015).

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Table 13.1 Attribute of a respondent of questionnaires Attributes Sex

Occupation

Academic history

Workplace

Monthly salary

Specialty

Male Female

Number (%) 67(42.1) 92(57.9)

Attribute Ethnic group

CSVO SPT (elementary) SPT (middle) Graduate school Under graduate

70(44.0) 54(34.0)

College Rural

9(5.7) 129(81.1)

Regional City Under RMB 2999 RMB 30003999 RMB 4000– 4999 RMB 5000– 5999 RMB 6000 Plus Agriculture Pedagogy Economics

30(18.9) 33(20.8)

24(15.1) 44(27.7) 12(7.6)

Marital status

Management Others

22(13.8) 57(35.9)

Work experience

35(22.0) 7(4.4)

Age

Birthplace

143(89.9)

Han race Minority race Under 25 26–29 30 plus Rural

Number (%) 126(79.2) 33(20.8) 60(37.7) 58(36.5) 41(25.8) 124(78.0)

Regional city Large city Minority race Others Under 1

29(18.2)

34(21.4)

1–2

42(26.4)

22(13.8)

2–3

21(13.2)

35(22.0)

3–6

45(28.3)

35(22.0)

6 plus

11(6.9)

Single Married Married (child) Presence Absence

95(59.8) 18(11.3) 46(28.9)

Attribute of workplace Years of service

6(3.8) 74(46.5) 85(53.5) 40(25.2)

67(42.1) 92(57.9)

20%. This may be due to the fact that China’s rural-regeneration supporters project is concentrated in the western poor areas, especially in ethnic minority areas, and preferentially hires locals. This is clear from the respondents’ birthplace and attributes of workplace. Looking at the birthplace, the number of respondents from rural areas is 124 (78.0%), which accounts for almost 80% of the total. In addition, looking at the attributes of workplace, 74 (46.5%) are active in ethnic minority areas. Looking at the ages, 60 (37.7%) are under 25, 58 (36.5%) are 26–29 years old, and 41 (25.8%) are over 30 years old. Looking at the educational background, nearly 90% were university graduates. For this reason, some previous studies have pointed out the relationship between educational background and intention of rural employment or intention of retention. However, many of them were university graduates in

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this study, so this was difficult to analyze due to differences in educational background. However, it was difficult to analyze based on the difference of educational background because many of them were university graduates in this survey. Regarding occupations, CSVO was 70 (44.0%) and SPT was 89 (56.0%), of which 35 (22.0%) were junior high school employees and 54 (34.0%) were elementary school employees. In connection with the workplace, it can be considered that 30 (18.9%) of those responding from local cities are junior high school employees. This is because some junior high schools are located in the areas of township governments and prefectural governments. Looking at the monthly salary per person, it can be seen that there is a wide range of monthly salaries from RMB 2999 or less (about $420) to RMB 6000 (about $850) or more, and there are differences in monthly salaries by region. In the case of the years of service, the number of respondents within the maximum term of 3 years was 103 (65.1%), and the number of respondents over 3 years was 56 (34.9%). Therefore, most of the respondents are in their first term. On the other hand, there were 11 persons (6.9%) among the workers in the second term and above. As explained in Chap. 2, the maximum term of CSVO and SPT is 6 years. Of the 11 respondents, 4 were CSVO workers and 7 were SPT workers. Generally, SPT workers who have been engaged for the second term are hired by local schools as formal teachers if desired. However, it is said that there are cases in which the status of SPT is limited because there is no quota for regular employment due to school reasons. In this case, the work content and treatment are the same as for a regular teacher, and the registration is SPT. From this, it is possible that the 11 employees who have been engaged for 6 years or longer cannot be said to be the active CSVO or SPT workers who are the subjects of this survey. However, even though it is a valuable sample that has settled in the area after 6 years of work, it will be the subject of analysis. Respondents have a wide variety of specialties in their school days. Since this survey targets SPT workers, many of them have specialized in pedagogy. Looking at the marital status, 95 (59.8%) were single, 18 (11.3%) were married and had no children, and 46 (28.9%) were married and had children. Furthermore, looking at the work experience in urban areas, 67 (42.1%) have experience in employment in urban areas. Conventionally, the project was aimed at college graduates, but it can be seen that the number of applicants is diversifying.

13.5.1.2

Summary of Survey Results

Table 13.2 shows the mean values and standard deviations of the results of questions asked about the reasons for aspiration, work and living environment, and future prospects on a 5-point scale. First, looking at the reasons for aspiration, the mean value of the answers that “I wanted to contribute to the community and society” (Local Contribution) was high, indicating that the respondents are interested in activities in rural areas to some

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Table 13.2 Response of reason for aspiration, work and living environment, and future prospects Topic Reason for aspiration

Work and living environment

Future prospects

Variables Local contribution Rural affinity

MV (SD) 3.65(0.91) 2.85(1.14)

Variable Prefer rural environment Go to graduate school

Rural employment Live with parents

2.82(1.18)

Become a civil servant

3.58(1.28)

Teacher’s recommendation Parents’ recommendation Don’t want

Job hunting failure No good at City life Work fit Family support Department support Residents exchange Residents support Contact a colleague Graduate school Civil servant Settlement

3.42(1.30) 2.57(1.24) 3.56(0.90) 3.92(0.92) 3.92(0.95) 4.02(0.78)

Work load Work environment Living environment Training system Self-study

3.72(0.87) 3.97(0.94) 3.11(1.24) 3.64(1.19) 3.53(1.05)

Involvement with region Company startup

MV (SD) 3.08 (1.10) 2.77 (1.12) 3.31 (1.20) 2.35 (1.18) 2.98 (1.26) 3.33 (1.20) 4.31 (0.80) 3.33 (0.98) 3.30 (1.04) 3.23 (1.05) 3.79 (0.92) 3.77 (0.93) 2.87 (1.15)

Note: MV is Mean Value, SD is Standard Deviation

extent. On the other hand, the average of the answers that “I didn’t want to become CSVO or SPT” (Don’t Want) and “I failed in job hunting in urban areas” (Job Hunting Failure) was high, a matter pointed out in the previous research, that there are a certain number of people who could not find the desired employment destination in urban areas and became CSVO or SPT. Furthermore, what is attracting attention is the high mean value of the answers to “I want to live with parents or live nearby” (Live with Parents), and it is thought that this is an action that takes into consideration the future care of parents. In addition, the mean value of respondents who said “I want to be a civil servant in the future” (Become a Civil Servant) is high. It can be said that this is because CSVO and SPT are aspiring to an opportunity for career advancement because the experience of rural-regeneration supporters gives them preferential treatment in recruiting civil servants. Furthermore, although the average value was not so high, it is noteworthy that 24.5% and 26.4% of the respondents answered “Strongly applicable” or “Applicable” to the question “I feel close to agriculture and rural areas” (Rural Affinity) and “I wanted to work in a rural area” (Rural Employment).

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Next, looking at the work and living environment, this is a high number overall. In some of the previous studies, it was pointed out that the work environment was undeveloped, but the work environment of the respondents to this survey is considered to be relatively good. However, the average value of the responses that “There is a lot of daily work” (Work Load) was very high at 4.31, which was the same as pointed out in the previous research. On the other hand, many respondents feel that there is support from the workplace and family, which is considered to have a great impact on the settlement and retention of rural-regeneration supporters based on previous research. In addition, the mean value of the answers that “Residents also support their work and life” (Residence Support) is high, which could be considered to be the result of building a relationship of trust with the residents, as shown by the high mean value of the responses that “I actively interact with local residents” (Residents Exchange). In addition, exchanges among CSVO or SPT workers are active, and information is being actively exchanged through SNS communities. Therefore, the mean value of the response “Keep in touch with my peers” (Contact a Colleague) is also high. From this, it is considered that not many respondents to this survey feel “loneliness” as pointed out in some previous studies. In addition, the mean value of the response “I study on my own for work” (Self-Study) is high, and many of the respondents are highly motivated to work. The mean value of future prospects was also generally high. In particular, it is noteworthy that the mean value of the answers of “I want to continue to be involved in the area even if I leave the area” (Involvement with the region) and “I want to remain in the area even after the end of term” (Settlement) is high. In addition, although the mean value of the question “I want to start a business here if possible” (Company Startup) is not high, but it is noteworthy that 28.3% of the respondents answered “Strongly applicable” or “Applicable.”

13.5.2 Discussion Table 13.3 shows the results of an analysis of the characteristics of rural-regeneration supporters who are willing to go to rural areas.6 Regarding the explained variable, of the answers to the question “Would you like to work in a rural area?” (intention of rural employment), “Strongly Applicable” and

In the table, “B” is an estimate. “SE” is the standard error, and the larger this value, the lower the estimation accuracy. “P” is a P-value, and indicates the probability that the null hypothesis (a hypothesis opposite to the original hypothesis) holds. Therefore, the lower the numerical value, the more the basis for establishing the hypothesis to be originally proved. Generally, the null hypothesis is rejected if it is 0.1% or less, or 0.05% or less. “OR” means Odds Ratio, and the larger this value, the more the objective variable fluctuates depending on the explanatory variable. Therefore, it is possible to know the effect of the explanatory variable on the objective variable. “95%CI” is 95% confidence interval, which means that when 100 estimations are performed, 95 times the population averages within this range.

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Table 13.3 Results of logistic regression analysis on rural employment intentions Variables Sex (female) Ethnic (minority) Age (26 plus) Occupation1 (CSVO) Occupation2 (SPT elementary) Occupation3 (SPT middle) Specialty (Agriculture & Pedagogy) Siblings (one-child) Marital status (single) Monthly salary (RMB 5000 plus) Birthplace (rural) Attribute of workplace (rural) With family Experience working in urban Parents are rural executives Log likelihood Cox–Snell R-square Nagelkerke R-square N

B

SE P 0.95 0.46 0.04** 0.52 0.57 0.36 1.32 0.57 0.02** 1.15 0.82 0.16 1.60 0.78 0.04** (reference category) 0.20 0.44 0.64 0.05 0.63 0.94 0.53 0.47 0.26 0.06 0.58 0.91 0.49 0.67 0.47 0.22 0.78 0.78 0.11 0.47 0.15 1.28 0.50 0.01*** 0.51 0.45 0.26 77.085 0.169 0.247 159

OR 0.38 1.68 0.27 3.15 4.95

95%CI 0.16 ~ 0.94 0.54 ~ 5.15 0.09 ~ 0.82 0.63 ~ 15.81 1.07 ~ 22.85

0.82 0.95 0.59 0.94 1.63 0.81 1.96 0.28 0.60

0.35 ~ 1.92 0.28 ~ 3.26 0.23 ~ 1.49 0.30 ~ 2.94 0.44 ~ 6.03 0.18 ~ 3.68 0.78 ~ 4.96 0.10 ~ 0.73 0.25 ~ 1.45

Note: ***p < 0.01, **p < 0.05

“Applicable” are “1,” “Neutral,” “Not so Applicable,” and “Not Applicable at all” are set to “0.” The following 14 explanatory variables are based on previous studies. (1) Sex (Female: 1, Male: 0), (2) Ethnic (Minority: 1, Han: 0), (3) Age (26 plus: 1, Under 25: 0). Regarding occupations, SPT (Middle) is used as a reference category, (4) Occupation1 (CSVO: 1, Others: 0), (5) Occupation2 (SPT Elementary: 1, Others: 0), (6) Specialty (Agriculture & Pedagogy: 1, Others: 0), (7) Siblings (One-child: 1, Others: 0), (8) Marital Status (Single: 1, Married: 0), (9) Monthly Salary (RMB 5000 plus: 1, Under RMB 5999: 0), (10) Birthplace (Rural: 1, Urban: 0), (11) Attribute of Workplace (Rural: 1, Others: 0), (12) With Family (Live with family: 1, Separated: 0), (13) Experience Working in Urban (Have: 1, No: 0), (14) Parents are Rural Executives (Yes: 1, No: 0). In the analysis, the Variance Inflation Factor was calculated between the explanatory variables, and all were 5 or less. Since the total number of samples is 159 for 14 total explanatory variables, the forced entry method is used here. Each index showing the goodness of fit of the regression model is Log likelihood 77.085, Cox–Snell R-square 0.169, Nagelkerke R-square 0.247, Hosmer–Lemeshow P-value of 0.65.7

These are indicators that the estimation model confirms the goodness of fit. Cox–Snell R-square and Nagelkerke R-square take values from 0 to 1, and the closer to 1, the higher the fitness. The Hosmer–Lemeshow P-value indicates that the goodness of fit of the model is good when the significance value is greater than 0.05.

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Table 13.4 Results of logistic regression analysis on intention of settlement Variables Sex (female) Ethnic (minority) Age (26 plus) Occupation1 (CSVO) Occupation2 (SPT elementary) Occupation3 (SPT middle) Years of service (>4 years) Specialty (Agriculture & Pedagogy) Siblings (one-child) Marital status (single) Monthly salary (RMB 6000 plus) Birthplace (rural) Attribute of workplace (minority) With family Experience working in urban Parents are rural executives Log likelihood Cox-Snell R-square Nagelkerke R-square N

B

SE P 0.70 0.43 0.10* 0.36 0.48 0.46 0.08 0.44 0.86 0.94 0.56 0.10* 0.09 0.57 0.88 (Reference category) 0.06 0.46 0.90 0.12 0.38 0.75 0.56 0.52 0.28 0.74 0.46 0.11 0.20 0.50 0.69 0.49 0.47 0.30 0.06 0.50 0.94 0.45 0.39 0.24 1.12 0.43 0.01*** 0.76 0.41 0.07* 96.929 0.146 0.196 159

OR 0.50 0.70 1.08 0.39 1.09

95%CI 0.21〜1.15 0.27〜1.80 0.45〜2.58 0.13〜1.18 0.36〜3.34

0.95 1.12 0.57 0.48 1.22 1.63 0.93 1.57 0.33 2.14

0.38〜2.33 0.16〜0.96 0.20〜1.58 0.19〜1.17 0.46〜3.26 0.64〜4.12 0.35〜2.49 0.74〜3.35 0.14〜0.75 0.95〜4.83

Note: ***p < 0.01, *p < 0.1

As a result of the analysis, it was found that males, younger generations, and those who had no employment experience in urban areas tended to work in rural areas with a positive intention. Here, it is especially noticeable that the younger generation is actively moving toward rural areas. In addition, it is considered that those who had employment experience in urban areas had problems such as not being able to adjust to the environment of the urban area, and it is possible that they came to rural areas with a relatively negative intention. Looking at the occupations, it was found that SPTs assigned to elementary schools tend to work in rural areas with a more positive intention than SPTs assigned to junior high schools. For this reason, being assigned to an elementary school means working in a rural area, and it can be said that they are more willing to come to a rural area than those assigned to a junior high school. Table 13.4 analyzes the characteristics of rural-regeneration supporters who have intention of settlement. Regarding the explained variable, of the answers to the question “Would you like to remain in the area after the term ends” (intention of settlement), “Strongly Applicable” and “Applicable” are “1,” “Neutral,” “Not so Applicable,” and “Not Applicable at all” are set to “0.” Regarding the explanatory variables, first, the Variance Inflation Factor was calculated between the explanatory variables, and all were 3 or less. Since the total number of samples is 159 for 15 total explanatory variables, the forced entry method is used here. Each index showing the

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goodness of fit of the regression model is Log likelihood 96.929, Cox–Snell R-square 0.146, Nagelkerke R-square 0.196, Hosmer–Lemeshow P-value of 0.80. 15 explanatory variables were set based on previous studies. Differences from Table 13.3 are the addition of Years of Service (>4 years: 1, < 3 years: 0) and the high standard of Monthly Salary (RMB 6000 plus: 1, < RMB 5999: 0). This is the result of previous research that treatment affects the retention of rural-regeneration supporters. RMB 5000 is close to the average starting salary of college graduates in China, and it can be said that it is necessary to be set higher than the average in China when analyzing retention. As a result of the analysis, males tended to have a higher intention of settlement than females by sex. Also, CSVO workers tend to have a lower intention of settling down than SPT in junior high school. It seems that CSVO workers are more likely to be engaged in CSVO as opportunities to improve their careers as civil servants than to settle in the region. In previous studies, it was said that when children were born, some people moved to urban areas in search of their educational environment. But among the respondents of this survey, there were a certain number of married people with children, but such a tendency was not confirmed. In addition, those who have experienced employment in urban areas tended to have a lower intention of settlement than those who have never worked in urban areas. From this, it can be considered that many people who have been employed in urban areas have become CSVOs due to negative factors such as their inability to adjust to life in urban areas. Also, those who say their parents are executives of autonomy organizations have less intention of settlement than those who do not. Table 13.5 analyzes the characteristics of the rural-regeneration supporters who want to have a continuing involvement with the region even after their term of office ends. Regarding the explained variable, of the answers to the question “ Would you like to continuing involvement with the region even after leaving the area after the term of office ends?” (intention of continuing involvement with the region), “Strongly Applicable” and “Applicable” are “1,” “Neutral,” “Not so Applicable,” and “Not Applicable at all” are set to “0.” The same 15 explanatory variables as in Table 13.4 were set. Each index showing the goodness of fit of the regression model is Log likelihood 92.739, Cox–Snell R-square 0.129, Nagelkerke R-square 0.178, Hosmer–Lemeshow P-value of 0.48. As a result of the analysis, it tended to reveal that those with siblings tended to have a higher intention of continuing involvement with the region than their one-child. Regarding this, as mentioned above, rural-regeneration supporters tend to preferentially hire locals, and this is a speculation, but personal it is thought that it is related to the fact that people who have siblings are less burdened by caring for their parents than those who do not, and tend to leave the region. In addition, those who answered that their parents were executives of the autonomy organization tended to have a lower intention of continuing involvement with the region than those who did not. Similar results were obtained in the analysis of the intention of settlement, but the reason for this needs further examination.

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Table 13.5 Results of logistic regression analysis on intention of involvement Variables Sex (female) Ethnic (minority) Age (26 plus) Occupation1 (CSVO) Occupation2 (SPT elementary) Occupation3 (SPT middle) Years of service (>4 years) Specialty (Agriculture & Pedagogy) Siblings (one-child) Marital status (single) Monthly salary (RMB 6000 plus) Birthplace (rural) Attribute of workplace (minority) With family Experience working in urban Parent are rural executives Log likelihood Cox–Snell R-square Nagelkerke R-square N

B

SE P 0.02 0.43 0.96 0.38 0.52 0.47 0.52 0.45 0.25 0.03 0.57 0.95 0.31 0.57 0.59 (Reference category) 0.19 0.48 0.70 0.62 0.40 0.12 0.99 0.54 0.07* 0.51 0.46 0.27 0.16 0.51 0.75 0.61 0.47 0.20 0.16 0.50 0.75 0.20 0.40 0.62 0.57 0.44 0.20 1.18 0.47 0.01*** 92.739 0.129 0.178 159

OR 0.98 1.46 0.60 1.03 0.73

95%CI 0.42〜2.29 0.53〜4.01 0.25〜1.44 0.33〜3.20 0.24〜2.25

0.83 0.54 0.37 0.60 1.18 1.83 1.17 1.22 0.57 3.27

0.32〜2.13 0.25〜1.17 0.13〜1.07 0.24〜1.49 0.43〜3.22 0.73〜4.61 0.44〜3.09 0.56〜2.68 0.23〜1.35 1.31〜8.18

Note 1: ***p< 0.01, *p < 0.1

Table 13.6 shows the results of partial correlation analysis for the Relationship between intention of settlement, continuing involvement with the region, and various variables. First, looking at the relationship between reason for aspiration and intention of settlement, a weak positive correlation was found with “Rural Employment.” From this, it was confirmed that those who became rural-regeneration supporters with a positive intention tended to have a high intention of settlement. Also, a weak positive correlation was found with “No good at City Life Prefer” (Life in the city doesn’t fit) and “Rural Environment” (I like the rural natural environment and life rhythm). From this fact, there was a tendency that those who did not fit their lives in the urban areas and those who had a good image of the living environment in rural areas had a higher intention of settlement. On the other hand, looking at the relationship between reason for aspiration and intention of continuing involvement with the region, a weak positive correlation was found with “Local Contribution,” “Rural Affinity,” “Rural Employment,” and “Rural Environment.” From this, it was found that those who have a positive image of rural areas and those who are highly motivated to contribute to the region tend to have the intention of continuing involvement with the region even after their term of office ends. Also, a weak positive correlation was found with “Live with Parents” and “Parents’ Recommendation” (Parents recommended and became

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Table 13.6 Relationship between intention of settlement, involvement, and various variables Variables Reason for aspiration

Work and living environment

Local contribution Rural affinity Rural employment Live with parents Job hunting failure No good at city life prefer rural Rural environment Go to graduate school Become a civil servant Teacher’s recommendation Parents’ recommendation Work fit Family support Department support Residents exchange Residents support Contact a colleague Work load Work environment Living environment Training system Self-study

Settlement 0.179*** 0.178*** 0.358*** 0.141*** 0.072*** 0.239*** 0.253*** 0.013*** 0.123*** 0.172*** 0.152*** 0.434*** 0.406*** 0.334*** 0.136*** 0.126*** 0.091*** 0.139*** 0.324*** 0.275*** 0.428*** 0.180***

Involvement 0.288*** 0.266*** 0.305*** 0.326*** 0.099** 0.164*** 0.353*** 0.028*** 0.196*** 0.120*** 0.317*** 0.386*** 0.178*** 0.322*** 0.206*** 0.212*** 0.131*** 0.014** 0.299*** 0.268*** 0.204*** 0.367***

Note: ***p < 0.01, **p < 0.05, *p < 0.1

rural-regeneration supporters). Among them, people who have become ruralregeneration supporters because they want to live with their parents or close to them will not settle in the area in the future, but the work place is considered to be close to their hometown, and it can be said that the environment makes it easy to maintain a continuous relationship with the region. Next, looking at the relationship between work and living environment and intention of settlement, a positive correlation was found with “Work Fit” (I think my current job suits me), “Family Support” (Receives various support from family), and “Training System” (The training system is substantial). Also, a weak positive correlation was found with “Department Support” (Receives various support from department), “Work Environment” (I am satisfied with my work environment), and “Living Environment” (I am satisfied with my current living environment). On the other hand, looking at the relationship between work and living environment and intention of continuing involvement with the region, a weak positive correlation was found with “Work Fit,” “Department Support,” “Residents Exchange” (I am actively interacting with residents on a daily basis), “Residents Support” (Receives support from residents in work and life), “Work Environment,” “Living Environment,” “Training System,” and “Self-Study.”

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From this, it was confirmed that it is important to enhance the support system for individual rural-regeneration supporters and to improve their work and living environment in order to increase the intention of settlement and continuing involvement with the region. Regarding the intention of continuing involvement with the region, the relationship with the local residents is also important, and it is considered that the building of human relations with the local residents is the basis of the continuous relationship with the region.

13.6

Conclusion

This chapter, focused on the regional support human resources system implemented as a national policy in Japan and China, and examined the characteristics of young people heading to rural areas. What is common to the rural-regeneration supporters projects in Japan and China is that they recommend to settle in the region. On the other hand, in Japan, the lifestyles of young people are diversifying, and increasing number of people are coming and going from multiple regions. Under such circumstances, although it is assumed that rural-regeneration supporters will be settled, after the end of their term, even if the local support personnel leave the region, people who continue to maintain a relationship with region are attracting attention. Such a person is referred to as a “Relationship Population” and this is considered as a concept between “Interchanging Populations” which visit rural areas for agricultural and rural experiences and the “Resident Population.” However, no attention has been paid to such a “Relationship Population” in China. Based on the above, in this chapter, a quantitative analysis of the results of a questionnaire survey of active rural-regeneration supporters in China was conducted. First, the results of the questionnaire survey show that relatively many people have the intention of settlement and intention of continuing involvement with the region. It is considered that this was cultivated by engaging in rural work as ruralregeneration supporters. In order to raise these intentions, it is important to improve the living and working environment and to provide various types of support to individual rural-regeneration supporters. And, as a whole, there were not many people who were willing to go to rural areas, but it was revealed that younger generations and those who had no employment experience in urban areas tended to work in rural areas with a positive intention and become rural-regeneration supporters. In particular, younger generation’s willingness to go to rural areas may be a sign of “Denen Kaiki” in China. The analysis in this chapter does not have a large number of samples, and only a part of the rural-regeneration supporters project in China was able to be analyzed, and, as a result, there are some issues yet to be resolved. However, although not mentioned in this chapter, in recent years, the rural-regeneration supporters project has begun in South Korea, and young people in urban areas have been dispatched to rural areas. Considering this, the fact that the rural-regeneration supporters projects

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in Japan and China are promoting the trend of “Denen Kaiki” should be noted in the future when considering the rural issues in East Asia.

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