Abstract
The average age of agricultural managers in Japan is increasing, and data shows that the average age of managers with a total paddy field area of less than 0.5 hectares is 71.2 years old (as of 2022). This aging population is affecting the lack of successors and the continuity of agricultural management. In addition, sales per agricultural business owner vary greatly depending on labor productivity and the size of the operation. While small-scale farms have limited sales and many economic challenges, large-scale operations have the ability to introduce new technology and improve labor productivity. In terms of salary, the remuneration for full-time employees varies depending on the size and region, but labor shortages are becoming more serious as the population ages. These trends highlight the challenges facing Japanese agriculture, such as encouraging young people to enter the industry and promoting technological innovation. In the future, it will be necessary to establish sustainable agricultural management and explore efficient management models.
The average age of the business owners
The average age of Japanese agricultural managers has increased significantly over the past few years. In particular, the age of farm owners with a total paddy field area of less than 0.5 hectares peaked at 73 years old in 2021, and the age trend continues to age. This statistic reflects the issue of agricultural successors and the challenges of young people entering agriculture. Currently, 97.5% of farmers have a total paddy cultivation area of less than 0.5 hectares, indicating that the aging of small-scale farmers is becoming a serious problem. Behind this ageing population are social and economic factors that lead young people to choose professions other than agriculture. In addition, the harsh working conditions and low profitability of agricultural management are also contributing to the decline in successors. On the other hand, large-scale farmers and managers who utilize technology tend to be relatively young, and productivity is improving. There is a need to improve labor productivity across the agricultural industry and establish sustainable management models, but to achieve this, policy support and the promotion of technology adoption are essential. In the future, important issues will be to make agriculture more attractive to young people and to improve agricultural policies. As the average age of farm managers increases, new initiatives are needed to ensure the sustainability and development of local agriculture.
The maximum is 73Years old[2021] of Rice less than 0.5ha, and the current value is about 97.5%
Reference salary for full-time employees
The salaries of full-time agricultural workers in Japan vary greatly depending on the size of the business and the region. According to data from 2022, farmers with a total paddy cultivation area of 50.0 hectares or more pay the highest annual salary of 6 million yen. This indicates that large-scale agriculture is maintaining high wage levels in some areas. On the other hand, the overall average salary was 1.83 million yen, and the total salary amount was 20.1 million yen, meaning that many agricultural operations are small-scale and salaries tend to be relatively low. Low wages for full-time workers are due to challenges in farm profitability and the state of the labour market. Especially for small-scale farms, wage levels are kept low due to constraints on the scale of operations and the small number of workers. This has made securing and retaining the workforce an issue. On the other hand, large-scale farms offer higher salaries and relatively stable employment conditions for positions requiring technical expertise and managerial positions. Agricultural wage levels vary depending on the region and characteristics of the crop. In agricultural practices that produce high-value crops or have advanced technologies, wages tend to be set according to workers’ skills and contributions. From a policy perspective, support measures to secure the workforce and the promotion of technological innovation are needed. In the future, it is hoped that increased profitability in agriculture and improvements to working conditions will lead to a more competitive wage system.
The maximum is 8.55Myen[2020] of Rice 50.0ha or more, and the current value is about 70.2%
Sales per business employee
Sales per person working in Japan’s agriculture industry vary greatly depending on the scale of the business and the crops grown. The maximum sales revenue in 2022 will be 4.87 million yen for farmers with a total paddy field area of 50.0 hectares or more. This is an example of large-scale agriculture achieving high sales, reflecting economies of scale and the impact of technological adoption. Small-scale farmers generally have limited sales and face profitability challenges. Median and average sales per agricultural worker remain relatively low overall, as they include farms that are statistically less profitable. This situation is making it particularly difficult for young people to enter the agricultural industry and to find successors, affecting the sustainability of local agriculture. Technological innovation and improved management efficiency are essential to increasing sales. In large-scale agriculture, the introduction of automation and precision agriculture techniques has improved labor productivity and boosted sales. On the other hand, small-scale farmers place importance on utilizing local resources and creating added value. For example, producing local specialties and utilizing direct sales outlets are initiatives that contribute to improving profitability. Policy wise, there is a call to support diversification of agricultural practices and promote technological innovation. In the future, it is expected that the spread of more sustainable and economically robust agricultural management models will contribute to the development of agriculture in the region as a whole.
The maximum is 5.61Myen[2020] of Rice 50.0ha or more, and the current value is about 86.7%
Value added amount
Labor productivity in Japanese agriculture (value added per agricultural worker) varies greatly depending on the scale of operations and the degree of technological adoption. According to data from 2022, farms with a total paddy field area of 50.0 hectares or more showed the highest labor productivity, with added value per agricultural worker being 2.75 million yen. This reflects the high efficiency with which large-scale agriculture is run. On the other hand, the overall average labor productivity was 1.02 million yen, and the total labor productivity for agriculture as a whole was 9.2 million yen. This figure includes small farms and agricultural practices with different regional characteristics. The labor productivity of small-scale farmers is limited, suggesting that there is room for the introduction of new technology and improvements in management. The difference in labor productivity is mainly due to the progress of technological innovation and the appropriate utilization of management resources. In large-scale agriculture, the introduction of mechanization and IT technology is improving labor efficiency and promoting the creation of added value. On the other hand, in small-scale farms, human resource constraints and limited management resources hold back labor productivity. From a policy perspective, support for technology transfer and worker training is considered important in order to ensure the sustainability and competitiveness of agriculture. It is expected that implementing support measures tailored to the characteristics and needs of each region will contribute to improving labor productivity. In the future, it is hoped that agricultural innovation and efficiency will contribute to overall economic growth and local community development.
The maximum is 37.1Myen[2020] of Rice 50.0ha or more, and the current value is about 77.3%
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