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Abstract

This paper presents a review and clarification of the goals of agricultural finance study in Japan, and thereby aims to promote a perspective on the future direction of that study within the country while also taking into account research trends abroad. In the paper, agricultural finance is regarded as one of the most important means of developing farm management, and thus financing to farm management is the focus of the review. The key topics discussed are: (i) government programmed loans for agriculture; (ii) financing of agriculture by JA (Japan Agricultural Cooperatives); and (iii) the latest research trends in agricultural finance. Most studies on this subject in Japan employ the case analysis method based on field surveys, with hardly any econometric empirical analysis that inspects hypotheses statistically based on detailed data of both lenders (financial institutions) and borrowers (farm management). The research uncovered the importance of conducting both case analysis and econometric analysis in a complementary manner in the future and the necessity of preparing and disclosing data to enable econometric analysis.

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