Akira Kiminami (p), Lily Kiminami , Shinichi Furuzawa

Among the diversification of farm business, on-farm processing (OFP) is expected not only to improve the profitability of farm business through the production of high value-added products but also to create employment in the rural area and to revitalize the rural economy. However, in recent years in Japan, the number of farm business engaged in OFP is decreasing. Meanwhile, it is believed that besides of entrepreneurship in the rural sector there are many factors affecting the diversification of farm business such as local natural conditions, socioeconomic conditions, etc., although it has generally been caught as one of the consequences caused by entrepreneurship in previous studies. Therefore, it can be considered that the ratio of farm business engaged in on-farm processing (ROFP) depends not only on the size, products, entrepreneurship but also on regional factors. In other words, the level of ROFP in the region can be generally explained by the natural and socioeconomic conditions including the agricultural structure of the region, and the residues of the region's ROFP can be regarded as a level of entrepreneurship.
The purpose of this study is to clarify the determinant factors of on-farm processing in Japanese farm business and estimate the level of entrepreneurship in the region. The main data used for analysis is municipal panel data on Japanese agricultural censuses and related socioeconomic statistics in 2010 and 2015. Based on the results of the analysis, we derive policy implications that contribute to promoting farm business and the rural economy.

Brian H.S. Kim (p), Mika Wakamatsu

Payment for Ecosystem Services (PES) is the payment for externality of ecosystems including farmland and preservation activity that has characteristics of public goods. One of the most important functions of farmland is prevention of flooding by the land holding appropriate water supply. However, farmland abandonment is accelerating and damage of flooding is getting serious especially in most of rural areas in Japan. These areas also are experiencing rapid aging and depopulation along with more visible effect from recent climate change. The experience with PES in Japan is not mature enough compare to US and EU countries, however the Japanese government provides various types of subsidies such as direct payment for the prevention of farmland abandonment and for the activities of preservation of community land in rural area. Consideration of the efficiency of the payment is crucial to sustain preservative activities and to have long-term effects. Theoretical framework of this study is based on PES and its efficiency on preventing farmland abandonment. With the limited study on the efficiency of such payment in Japan, we aim to clarify the efficiency of related subsidy and also estimate the damage cost of flooding based on RCP8.5 scenario to predict the necessity of farmland preservation in the future. In addition, we investigate the factors of efficient subsidy use through analysis so that we could indicate effective use of PES to other countries where they may face the similar problems in near future due to depopulation in rural areas. We collected the data on flooding damage cost at the municipality level to determine the efficiency of payment for avoiding farmland abandonment. Panel data analysis on rate of farmland abandonment, rate of farmland rent, rate of farmland borrow and rate of contract farming as an indicator of result of farmland conservation were conducted to estimate their relation with flooding damage cost. Moreover, the effects of the precipitation, characteristics of local communities and the land ownership on the flooding damage cost were analyzed. The findings from this study provide policy implications to be considered for the conservation of farmland by means of PES in the rural areas.

Vítor João Pereira Domingues Martinho (p)

Promote sustainable rural development is a great challenge for the several stakeholders, namely for the policymakers and the public institutions. In fact, in the rural zones it is not, often, easy, namely, to create employment and promote dynamic in the economic activities. In these contexts, the agricultural sector and, specifically, the wine productions have a determinant contribution for the rural development in several parts of the world. In this context with the research here presented it is intended to survey the literature about the contributions from the wine sector for the rural development. For that, it was analysed several documents obtained from the Web of Science (for the topics: wine sector; rural development) and explored through the VOSviewer software. Of stressing, in the relationships between the wine sector and the rural development, the importance of aspects as those related with the wine tourism, the innovation, the landscape preservation, the sustainability, the new technologies and the terroir.

Acknowledgments: This work is financed by national funds through FCT - Fundação para a Ciência e Tecnologia, I.P., under the project UID/Multi/04016/2019. Furthermore we would like to thank the Instituto Politécnico de Viseu and CI&DETS for their support.
Acknowledgments: This work is supported by national funds, through the FCT – Portuguese Foundation for Science and Technology under the project UID/SOC/04011/2019.