How to introduce machinery and facilities by utilizing the Comprehensive Support Grant for Creating Strong Agriculture and Bearers of Agriculture

Have you given up on installing expensive agricultural machinery and facilities? Farmers may be eligible for government assistance with the cost of installing machinery and facilities if certain conditions are met.

This article explains the subsidy program called “Comprehensive Support Grants for Building Strong Agriculture and Bearers of Agriculture”. The outline, eligible projects, amount of support, etc. are detailed and easy to understand.

If you did not know much about grants, or if you have been avoiding them because they seem somehow difficult, this is a great opportunity to find out more.

Table of Contents

1. What is the Comprehensive Support Grant for Creating Strong Agriculture and Bearers of Agriculture?

2. “Comprehensive Support Grants for Creating Strong Agriculture and Bearers of Agriculture” 3 types of support

2-1. Support for key facilities in production areas

2-2. Advanced Agricultural Management Support Type

2-3 . Local Leader Development Support Type

3. “Comprehensive Support Grants for Creating Strong Agriculture and Bearers of Agriculture” 2 subsidized projects

3-1. About Loan Initiative Subsidy Programs

3-2. About the Disadvantaged Area Type Subsidy Project

4. Examples of utilization of the comprehensive support grant for building a strong agriculture and bearers of agriculture

4-1. Example of using a grant for the cost of introducing a mycorrhizal tent to produce shiitake and maitake mushrooms

5 Conclusion

What is the Comprehensive Support Grant for Creating Strong Agriculture and Bearers of Agriculture?

This is one of the subsidy programs provided by the Ministry of Agriculture, Forestry and Fisheries (MAFF), which supports the introduction of agricultural machinery and facilities without interruption according to the size of the farming operation, with the aim of strengthening profitability and promoting business development of bearers. The projects are divided into the following three “types” depending on the nature of the project to be supported, and each has different conditions, etc.

• Support for key facilities in production areas
• Support for Establishment of Advanced Agricultural Management
• Local Leader Development Support Type

Each will be discussed in detail individually.

Three types of "Comprehensive Support Grants for Creating Strong Agriculture and Bearers of Agriculture

While the general purpose is the same, the grant is divided into three types that differ in terms of grant amount, etc., depending on the nature of the project to be supported. An overview of each type is as follows

Support for key facilities in production areas

This type of support is for agricultural corporations and farmers’ associations that play a central role in local agriculture, such as markets and cooperatives. In addition to wholesale market facilities to strengthen quality control and hygiene management, the program supports the introduction of large facilities that will serve as the backbone of the production area, such as stocking points necessary for joint deliveries at the production area and consumption areas.

• Eligible for subsidy: Core facilities in production areas for agricultural use (useful life of 5 years or more)
• Subsidy rate: within 1/2, etc.
• Upper limit: 2 billion yen (~3 billion yen)

Support for Establishment of Advanced Agricultural Management

In contrast to the “Regional Support Type,” described below, the maximum amount of this type is increased for agricultural corporations that have higher goals and are expanding their business over a wide area. This type supports the introduction of agricultural machinery and facilities necessary for the advancement of management based on their own originality, ingenuity, and judgment. This type of loan is provided under the “Loan Initiative Assistance Type” program. (See below for details).

• Subsidies are available for: Agricultural machinery and facilities (useful life of 5 to 20 years)
• Subsidy rate: within 3/10, etc.
• Maximum amount: 10 million yen for individuals, 15 million yen for corporations, etc.

Local Leader Development Support Type

This type of support is provided to agricultural enterprises (managers) who intend to take initiatives for business development as leaders of local agriculture, to establish a business foundation and to introduce agricultural machinery and facilities necessary to further develop their business. In addition to the “Loan Initiative Subsidy Type,” the program consists of two types of subsidized projects: the “Disadvantaged Area Type” and the “Loan Initiative Subsidy Type.

• Subsidies are available for: Agricultural machinery and facilities (useful life of 5 to 20 years)
• Subsidy rate: within 3/10, etc.
• Maximum amount: 3 million yen, etc.

Two subsidized projects for "Comprehensive Support Grants for Creating Strong Agriculture and Bearers of Agriculture".

The “Comprehensive Support Grants for Creating Strong Agriculture and Bearers of Agriculture” consist of two types of subsidies: a “loan-based subsidy type,” which requires loans, and a “disadvantaged area type,” which aims to promote efficiency in small-scale and micro-regions. The conditions for each of these projects are different, so let’s take a look at each of them.

About Loan Initiative Subsidy Programs

This program provides subsidies for the remaining loan balance when agricultural machinery and facilities are installed using loans. Loans from the following periods are eligible for this program.

• agricultural cooperative
• Federation of Agricultural Cooperatives
• The Norinchukin Bank
• Japan Finance Corporation
• Okinawa Development Finance Corporation
• Banks
• credit union
• credit association
• administrative divisions of Japan: Tokyo-to, Hokkai-do, Osaka-fu and Kyoto-fu

Please note that activities that aim to innovate agricultural management to address issues such as labor shortages through the use of new technologies will be eligible for priority quotas for the project.

About Loan Initiative Subsidy Programs

This program provides subsidies for the remaining loan balance when agricultural machinery and facilities are installed using loans. Loans from the following periods are eligible for this program.

• agricultural cooperative
• Federation of Agricultural Cooperatives
• The Norinchukin Bank
• Japan Finance Corporation
• Okinawa Development Finance Corporation
• Banks
• credit union
• credit association
• administrative divisions of Japan: Tokyo-to, Hokkai-do, Osaka-fu and Kyoto-fu

Please note that activities that aim to innovate agricultural management to address issues such as labor shortages through the use of new technologies will be eligible for priority quotas for the project.

Project implementation area

Districts that meet one of the following criteria are eligible For more information on whether or not you are eligible, please contact the agricultural department of your municipality.

1. Areas where an appropriate “People and Farmland Plan” (see below) has been prepared.
2. In areas where the “People and Farmland Plan” has not been prepared, the scope of farming by persons who have been granted lease rights by the Organization for Land Management and Rural Areas

Appropriate "People and Farmland Plans"

An “appropriate “People and Farm Plan” is a plan that meets all of the following

• The draft of the people and farmland plan must be prepared based on the intentions of major farmers (including farmers who have entered the farm), and the contents must be shared with relevant parties in the region, including farmland owners, through discussions and other activities, and the results of these discussions and other activities must be made public.
• In addition, the future direction of local agriculture (farmland accumulation, expansion of farmland size, industrialization, 6th industrialization, high value-adding, promotion of new farmers, etc.) and the policy for utilization of the Organization for Land Use and Management should also be fully discussed in the discussions and other activities.
• That the company expects to continue its discussion activities and improve the content of the People and Farmland Plan.

Grantees

The “Loan-type Subsidy Program” of the “Comprehensive Support Grant for Creating Strong Agriculture and Bearers of Agriculture” is available to those who meet any of the following conditions.

1. Central management entity positioned in the appropriate people and farmland plan
2. Farmers or groups organized by farmers that the project proponent recognizes as necessary to realize the contents specified in the “Future Plan for Local Agriculture” of the appropriate People and Agricultural Land Plan.
3. Persons who have obtained lease rights from the Organization for Land Management and Rural Areas (limited to Project Area (2))

However, in the case of newcomers to farming, they are limited to certified farmers or certified farmers.

In addition, the target group is required to set and achieve the following “mandatory targets” and one or more additional “business-related initiative targets” in concrete terms.

Required Targets

• Increase in value added (total income – total expenses + labor costs)

Targets for Business-Related Initiatives

• Expansion of management area
• Improving the value of agricultural products
• Increase in yield per unit area
• Reduction of management costs
• Compounding of agricultural management
• Incorporation of agricultural business

Eligible Businesses

The grant will cover the following two projects

1. Acquisition, improvement, reinforcement, or repair of machinery and other equipment necessary for the production of agricultural products or for the initiation or improvement of other agricultural operations
2. Creation, improvement or restoration of agricultural land, etc.

For example, the following projects are eligible for support

• Acquisition of tractors, rice transplanters, combines, and other agricultural machinery
• Acquisition of facilities such as tent warehouses, drying and preparation facilities (dryers), and collection and shipping facilities (fruit sorting machines)
• Maintenance of plastic greenhouses
• Improvements to farmland and other lands, such as the removal of causeways and the maintenance of culverts and culvert drainage

In addition, the following detailed conditions are set for eligible projects.

• Each individual project must be completed in a single year.
• The project cost must be at least 500,000 yen per maintenance detail.
• Machinery, etc. subject to the project must have a useful life of approximately 5 to 20 years.
• The property shall not be so versatile that it can be easily used for purposes other than agricultural operations, such as transportation trucks, computers, warehouses, etc.
• The project must be directly related to the grantee’s performance goals.

Grant Calculation Method

The calculation method and maximum subsidy amount for the “Loan Initiative Subsidy Program” are as follows

• The lowest amount calculated according to (1) through (3) of the calculation method
• or the maximum amount specified for each support type, whichever is lower.

[Calculation method

• (1) = Project cost × 3 / 10
• ② = Loan amount
• (③) = Project cost – Loan amount – Subsidies from local governments, etc.

Maximum amount for each support type

• Support for establishment of advanced agricultural management: ¥15 million for corporations, ¥10 million for individuals
• Local Leader Development Support Type: 3 million yen for both corporations and individuals

About the Disadvantaged Area Type Subsidy Project

The other subsidy program, “Disadvantaged Area Type Subsidy Program,” targets areas with small or micro-scale operations.

This subsidy system supports the introduction of machinery and facilities for shared use with the aim of “fostering motivated management entities.” By promoting the sharing of farm work and the concentration of farmland use, the system aims to improve productivity and farm work efficiency.

Project implementation area

Districts that fall into one of the categories (1) through (3) listed in the table below are eligible for the grant. Please contact the agricultural department of your municipality to determine if this applies to you.

(Source: Ministry of Agriculture, Forestry and Fisheries website)

Project implementation area

If any of the following three management entities apply, they are eligible for support. Each management entity has its own set of conditions, so please check with them for each.

• Organizations of farmers, etc.
• Entrant Corporation
• Organizations, etc. recognized by the project implementer

 

Organizations of farmers, etc.

An organization that falls into one of the following four categories. All of them must include at least three farmers, and the farmers must be deemed to have substantial control over the business activities of the organization (e.g., a majority of voting rights). (e.g., a majority of voting rights).

1. agricultural cooperative
2. Agricultural land-owning qualified corporations excluding agricultural cooperatives
3. Specified agricultural corporations and specified agricultural organizations
4. Corporations or voluntary organizations (including community farming organizations) engaged in commissioned and shared farm work, production, processing, distribution, and sales of agricultural and livestock products. etc.

Entrant Corporation

Entrant corporations that meet the following two requirements are also eligible for the grant

• The program must have a goal and a program to achieve that goal, which is to integrate the use of agricultural land by establishing rights of use or consigning agricultural work from three or more farmers, or to process raw materials by receiving supplies from three or more farmers.
• In the case of a corporation, the amount of capital or the total amount of contribution is 300 million yen or less, or the number of regular employees is 300 or less (excluding subsidiaries). (2) The company must be a corporation (excluding subsidiaries) with capital of 300 million yen or less or 300 or less employees.

Organizations, etc. recognized by the project implementer

The following organizations, which do not fit into the above categories, are eligible for subsidies if the project implementer (municipality) recognizes that it is appropriate to introduce machinery on behalf of a motivated management body.

• agricultural cooperative
• land improvement district
• agricultural commission
• Third sector, etc.

Eligible Businesses

Machinery and facilities that meet the following criteria and are used jointly by management entities to expand the scale of operations or promote diversification and complex operations are eligible.

• Each individual project must be completed in a single year.
• The project cost must be at least 500,000 yen per maintenance detail.
• The machinery or facilities to be used for the project must have a useful life of approximately 5 to 20 years.
• The project must be directly related to the grantee’s performance goals.

Details of maintenance eligible for support are shown in the table below.

(Source: Ministry of Agriculture, Forestry and Fisheries website)

Grant Calculation Method

The grant will be provided within the following limits for each type of maintenance.

• Total amount multiplied by 1 / 2 (1 / 3 for agricultural machinery)
• Upper limit is 40 million yen

In the case of implementation in Okinawa Prefecture and in the case of machinery such as paddy rice direct seeding machines, agricultural machinery is calculated at 1/2 instead of 1/3.

Examples of the use of grants to support the development of strong agriculture and bearers of agriculture

Here are some examples of actual use of the Comprehensive Support Grant for Creating Strong Agriculture and Bearers of Agriculture. Please refer to them for your reference.

Example of using a grant for the cost of introducing a mycorrhizal tent to produce shiitake and maitake mushrooms

A mushroom producer in Mogami County, Yamagata Prefecture, introduced a tent warehouse and built a “mycorrhizal tent” to be used as a mycorrhizal bed production and seed cultivation facility, utilizing a “Comprehensive Support Grant for Building Strong Agriculture and Leaders”.

In this example, the “Support Type for Key Industrial Facilities” of the Comprehensive Support Grants for Creating Strong Agriculture and Leaders of Agriculture was used. Since the project’s support is limited to facilities with a useful life of five years or more, conventional plastic greenhouses are not eligible, resulting in the introduction of “tents,” which are treated as buildings. This tent warehouse is constructed with a special membrane material that allows for adequate solar radiation reduction while ensuring brightness inside, as can be seen from the photos below.

At that time, a tent warehouse called “Flex House” was introduced by Taiyo Kogyo Co. Flex House” has a shorter construction period and lower cost than conventional warehouses and system construction warehouses, and its durability has been enhanced by the evolution of membrane materials.

Please refer to the following links to see Mogami Maitake Inc. and similar achievements.
> Versatile Mighty Flex Track Record

For more information or to inquire about Flex, please visit the following links
> “Flex House” by Taiyo Kogyo Corporation

summary

We hope you now have a better understanding of the grants and can consider introducing them. Details that cannot be conveyed in this article can be found by contacting us at

Please contact Taiyo Kogyo Corporation for information on products eligible for grants.
>> TAIYO KOGYO COMPANY, LIMITED│General Inquiries

Please contact the Ministry of Agriculture, Forestry and Fisheries regarding the grant program.
> “Ministry of Agriculture, Forestry and Fisheries Inquiry Desk

In addition to the Comprehensive Support Grant for Building Strong Agriculture and Bearers of Agriculture, several other agriculture-related grants exist.
Please see this article for an overview.
> “3 Must-See Subsidy Programs for Farmers │ Summary of Subsidies You Can Receive”