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Japan’s Agriculture Ministry plans to increase the maximum amounts for low-interest loans under a program designed to support farmers in adopting smart farming technologies.
The initiative aims to help farmers improve productivity and efficiency while encouraging expansion into larger-scale farming and agricultural processing.
Under the program, both local and national governments subsidize interest payments for up to 20 years, making it easier for farmers to invest in equipment and facilities.
Eligible investments include autonomous tractors, drone sprayers, and distribution or processing infrastructure to modernize farm operations.
Current loan limits could rise significantly, with individual farmers potentially able to borrow up to 200 million yen, up from 18 million yen, while agricultural corporations could see their ceiling increase to 700 million yen from 200 million yen.
The ministry intends to submit the necessary legislation for approval during the current parliamentary session to authorize the higher caps.
In fiscal 2024, new loans issued under the program reached 58.1 billion yen, representing slightly more than 10 percent of all agricultural loans from private banks.
Officials said the expansion is part of a broader strategy to strengthen Japan’s agricultural sector and help farmers manage rising costs and inflation pressures.