Japan's ruling parties reportedly start final talks on planned cut in subsidies to rice farmers participating in government's rice production adjustment system

TOKYO , November 14, 2013 () – Japan's ruling parties have started final talks on a planned cut in subsidies to rice farmers participating in the government's rice production adjustment system, informed sources said Wednesday.

The ruling Liberal Democratic Party proposed to its coalition partner, New Komeito, a plan to reduce the subsidies to 5,000 yen per 1,000 square meters of rice paddies from fiscal 2014, one-third the current level, according to the sources.

New Komeito agreed to consider the proposal.

New financial resources resulting from the subsidy cut will be used to create new subsidies to encourage shifts to production of rice for animal feed and to help maintain farmland.

The rice production control system, together with the existing subsidies, will be terminated in fiscal 2018.END

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