Abstract
The composition of assets in agriculture is diverse. According to the latest data for 2022, the total asset value of agricultural crop assets and land can reach up to 238 million yen, especially for vegetable cultivation areas of 30.0 ha or more. This indicates that the focus of agricultural management is shifting towards large-scale vegetable cultivation. Agricultural assets primarily include vegetables, fruits, and grains, with vegetables tending to be particularly valuable. Land is a core part of real estate assets, and land ownership is directly linked to the sustainability of agricultural operations. In addition, liquid assets such as cash and deposits serve as working capital and ensure flexibility for post-harvest operations and market fluctuations. Fixed assets include agricultural machinery and facilities, which play an important role in promoting productivity and efficiency. In particular, in recent years, the introduction of automation and digital technology has progressed, contributing to strengthening the competitiveness of agricultural management. Agricultural assets are characterized by their vulnerability to natural disasters and climate change, however advances in technological innovation and the adoption of sustainable agricultural practices are helping to manage these risks. Additionally, valuations and transactions of agricultural assets vary significantly across regions and markets, and they also play an important role in local economies. Due to these factors, agricultural assets are diverse, and managers aim to run sustainable agricultural businesses while responding sensitively to market trends and technological innovations.
Assets
Looking at the trends in agricultural assets over the past few years, in particular, assets of less than 5.0 hectares of vegetables peaked at 1.12 billion yen in 2019. However, in recent times we can see that agricultural assets in this sector have fallen to 3.98% of the total. This trend is due to several factors. First, large-scale agriculture is on the rise. Large-scale agriculture is seeking to improve economic efficiency and productivity, and investment is increasing, especially in high-value crops such as vegetables. This has resulted in a relative decline in the asset size of small-scale producers. Progress in technological innovation is also an important factor. Automation and the adoption of digital technologies are improving productivity and realizing economies of scale. This reinforces the idea that investment is only profitable above a certain scale, making it difficult for small producers to compete in the market. Additionally, changes in consumer demand are also playing a role. As consumer tastes become more diverse and demands for quality and safety increase, large-scale farmers are in a better position to provide more consistent quality control and supply systems. As can be seen, the trend in agricultural assets is toward larger scale and technological innovation, which is changing the competitive landscape in the market. Small producers are being forced to seek new market strategies and collaborations in order to operate sustainably.
The maximum is 1.12Gyen[2019] of Vegetables less than 5.0ha, and the current value is about 3.98%
Land
Land characteristics and trends in agriculture vary widely. According to data from 2022, land with a vegetable cultivation area of less than 5.0 hectares has an overall asset value of up to 148 million yen, with an average price of 51.4 million yen and a total value of 360 million yen. The first trend that can be inferred from these figures is that the value of agricultural land depends heavily on the region and characteristics of the land. The data show that land prices are particularly high in areas where the area devoted to vegetable cultivation is relatively small, and this is particularly evident in areas with high demand, such as suburban areas. In addition, the average asset value of farmland is 51.4 million yen, which shows that the importance of land in agricultural management is being emphasized even more. Land is considered to have stability as a real estate asset and long-term investment value, and is an essential foundation for agricultural management. Furthermore, the total figure of 360 million yen indicates the size of the entire farmland market, and it is understood that there is considerable variation depending on the region and type of crop. This suggests that agricultural managers need to carefully analyze regional characteristics and market trends when considering land acquisition or expansion. Finally, because the value of farmland fluctuates over time, it is necessary to establish sustainable land use and management strategies that take into account market changes and policy influences. Agricultural land data is also an important source of information as an indicator of the health and growth of a region’s agricultural economy.
The maximum is 148Myen[2019] of Vegetables less than 5.0ha, and the current value is about 3.04%
Cash, deposits, etc
The characteristics and trends of assets such as cash and deposits in agriculture vary widely. According to data from 2022, the maximum assets in cash, deposits, etc. held by managers of vegetable cultivation areas of less than 5.0 hectares was found to be 72.6 million yen. These figures indicate that agricultural managers place importance on cash and deposits to ensure business stability and operating funds. This reflects the fact that farmers, especially those with relatively small vegetable cultivation areas, have sufficient liquidity to respond to market fluctuations, pay for operations, and adjust seasonal expenses. Assets such as cash and deposits play a particularly important role in agricultural management. These assets enable us to flexibly respond to agricultural work and market fluctuations, and are therefore elements that support the stability and sustainability of our business. In addition, the fact that the face value of cash and deposits was 72.6 million yen is also an indicator of how individual managers are managing their economic risks. In order to deal with market fluctuations and uncertain weather conditions, how much cash managers hold is important from the perspective of business strategy and risk management. As a result, the increase in cash, deposits, and other assets held by agricultural managers reflects their pursuit of financial stability. This has laid the foundation for flexible response to future investments and the introduction of new technologies.
The maximum is 72.6Myen[2019] of Vegetables less than 5.0ha, and the current value is about 13.1%
Fixed asset
The characteristics and trends of fixed assets in agriculture are diverse. According to data from 2022, the maximum amount of fixed assets held by agricultural managers with vegetable cultivation areas of less than 5.0 hectares was 578 million yen, the average was 204 million yen, and the total amount reached 1.43 billion yen. The first important trend in agricultural fixed assets that can be inferred from these figures is the high value of agricultural machinery and facilities. In agriculture, mechanization and capital investment are essential to support efficient production, and these account for the majority of fixed assets. In particular in recent years, with the advancement of automation technology and ICT, improving productivity and work efficiency has become the main purpose of fixed asset investment. Land value is also an important factor in fixed assets. In areas where farmland has high asset value, effective agricultural management that makes the most of the land is required. Land values vary greatly depending on the region and land availability, and changes in market values are also heavily influenced by regional economic and agricultural policies. Furthermore, the total amount of fixed assets, 1.43 billion yen, can be seen as an indicator of the capital density of agricultural management. As agriculture evolves in response to technological innovations and market demands, the value of fixed assets is directly linked to the competitiveness and sustainability of an operation. In particular, the increasing value of fixed assets held by small farms highlights the importance of considering efficient management strategies and investment plans. As described above, agricultural fixed assets have diverse characteristics, and managers aim to run sustainable agricultural businesses while responding sensitively to market trends and technological innovations.
The maximum is 578Myen[2019] of Vegetables less than 5.0ha, and the current value is about 4.69%
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