The Challenge of Snow Country: The Track Record of Higashikubiki Agricultural Special Zone - December 2003

The Challenge of Snow Country: The Track Record of Higashikubiki Agricultural Special Zone - December 2003

Establishment of the Higashi-Kubiki Agricultural Special Zone (2003)
In 2003, the Higashi-Kubiki region of Niigata Prefecture (including the former Azuka Town) was designated as a "Higashi-Kubiki Agricultural Special Zone. This was the first attempt in Japan to allow joint-stock companies to participate in agriculture, with the aim of promoting local agriculture and revitalizing the economy. At the time, the aging of farmers and the shortage of successors were becoming serious, and the establishment of the special zone was intended to encourage the involvement of corporations to take on new responsibilities.

The approval of the special zone made it possible for companies to enter the agricultural industry through the leasing of farmland, thereby promoting more efficient agricultural management. In addition, the zone was also designed to promote "green tourism," which combines agriculture and tourism, as well as sixth industrialization utilizing local resources. In the town of Azuka (now Azuka-ku, Joetsu City), unique businesses such as "Snow Delivery Service" and "Countryside for Sale" were developed to take advantage of the natural conditions of the area's heavy snowfall, attracting nationwide attention.

Changes in Special Agricultural Zones (2010s)
After the introduction of the special zone system, the Higashi-Kubiki region saw an accelerated trend toward incorporation, with the number of agricultural corporations increasing in the 2010s, and the integration and consolidation of small-scale farmers progressing. However, the number of farmers continued to decline, and there was a need to secure new farmers to take on new responsibilities. During this period, agricultural corporations were established throughout Niigata Prefecture in an attempt to strengthen ties with the local economy.

In addition, Niigata City was designated as a National Strategic Special Zone in 2014, promoting further regulatory reform in the agricultural sector. This lifted the ban on corporate ownership of farmland and encouraged the development of new business models. These policies also supported the activities of agricultural corporations in the Higashi-Kubiki region.

Current Status and Challenges in the 2020s
According to the 2020 Census of Agriculture and Forestry, Niigata Prefecture recorded the second largest number of agricultural enterprises in Japan with 43502, and the third largest number of corporate enterprises in Japan with 1218. The number of certified farmers was 12,490, of which 1,165 were corporations. Although this clearly shows the increase in the number of agricultural corporations, the aging of farmers and the lack of successors remains a serious issue.

In the Higashi-Kubiki region, the concentration of farmland has progressed, and a polarization between small-scale farmers with less than 5 hectares and large-scale farmers with more than 30 hectares has become evident. Many of the agricultural corporations are engaged in 6th industrialization and are trying to revitalize the local economy through processing of local products and operation of direct sales centers. At the same time, smart farming utilizing ICT technology is being introduced, and attempts to save labor and improve productivity have begun.

Related Information
Current Status of Agricultural Corporations (2020)
Number of agricultural corporations: 43502 (2nd in Japan)
Number of incorporated farming corporations: 1218 (3rd in Japan)
Number of certified farmers: 124990 (2nd in Japan)
Number of certified farmers: 1165 (3rd in Japan)

Niigata City's National Strategic Special Zones (2014-)
Lifting of the ban on farmland ownership by corporations
Promotion of agriculture-related businesses
Expansion of support for new farmers

Challenges and Prospects for the Higashi-Kubiki Region
Aging population and lack of successors: Acceptance of outside human resources and utilization of regional development cooperation teams are required
Introduction of smart agriculture: ICT technology is being used to improve productivity

Conclusion
As a pioneer in agricultural reform in Japan, the Higashi-Kubiki Agricultural Special Zone has contributed to the development of regional agriculture by utilizing incorporation and deregulation. in the 2020s, while the number of agricultural corporations and the introduction of smart agriculture are increasing, challenges remain, such as the aging of the population and lack of successors. Going forward, there is a need to diversify agricultural management and build sustainable agriculture that takes advantage of local resources.