Key Facts
• June 20, 2025: Minister Shinjiro Koizumi met with JA Central Union Chair Tetsu Yamano.
• Agreement reached for JA to directly purchase rice from farmers.
• Current system involves farmers entrusting sales to JA, receiving partial payment upfront.
• Direct purchase aims to increase farmers’ income and expand rice production.
• Rice price surge attributed to supply shortages.
• Proposal to implement direct purchase starting with 2025 rice harvest.
• Increased production expected to stabilize prices and improve affordability for consumers.
• Direct purchase poses risks for JA, including unsold stock and price drops.
• JA’s current system includes low advance payments and post-sale deductions, causing income instability for farmers.
Summary
Japanese Agriculture Minister Shinjiro Koizumi and JA Central Union Chair Tetsu Yamano agreed on June 20, 2025, to shift towards a direct rice purchase system. This change aims to increase farmers’ earnings and boost rice production, addressing current supply shortages and high prices. The proposed system, potentially starting with the 2025 harvest, would replace the existing model where farmers entrust sales to JA and receive partial payments upfront. While the new approach could stabilize consumer prices, it introduces risks for JA, such as unsold inventory and price fluctuations. The current system’s low advance payments and deductions have contributed to income instability for farmers, highlighting the need for reform.
