Japan To Offer Tax Breaks For Tech Innovation In Farming

The government is pushing for "smart farming" by offering tax breaks for schemes that utilize technological innovation, as the industry faces a serious labor shortage amid Japan's rapidly aging population, as reported by a source familiar with the matter, according to Kyodo News.

The government has designated the promotion of smart farming as a key policy alongside strengthening food security. I Photo: Sumitomo Corporation

Under the system, farmers, agricultural cooperatives, equipment manufacturers, food companies, and local governments, among others, will work together to craft production innovation plans featuring technologies such as robots and artificial intelligence, the source said.

The government has designated the promotion of smart farming as a key policy alongside strengthening food security.

The tax burden associated with adopting new equipment and the registration of firms developing technologies based on compliance with the plan will be reduced, with the government aiming for the legislation's passage through the Diet next year.

Japan's farmer shortage is becoming more acute as they continue to age. As of February 2023, there were roughly 1.16 million farmers primarily making a living through agriculture. However, about 60% of them were in their 70s or older, while around 20% were in their 60s, with only 20% in their 50s or younger, as reported by Mainichi Shimbun.

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