The future of agriculture in the shrinking suburbs: The impact of real estate income and housing costs

This study is based on data from a survey of farmers in Tokyo, Japan where, in 1992, a programme combining preferential taxation and restrictions on the conversion of farmland was implemented. Our findings suggest that farmers in more populated areas with a strong dependence on real estate income tend to continue farming, as do those in less populated areas who are less dependent on this income source. Analysis further suggests that imposing heavy taxes on residential property simply increases living costs for farmers and results in the loss of agricultural land and that policies which promote diversification and reduce housing costs are important for keeping urban fringe land in agriculture.