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Peri-urban agriculture (PUA) has been widely regarded as a sub-field of multifunctional agriculture for improving the sustainability of urban environments. However, urban sprawl has both negative and positive effects on peri-urban farming, and the research on this issue in Japan is insufficient. This study aims to demonstrate the spatial distribution of farmland parcels in Tokyo and Osaka metropolitan areas and explore the synergistic effect of distance from cities and urban sprawl on the size of farmland parcels and farm-diversified activities such as direct marketing, farming experience, and environmentally friendly practices. Ordinary Least Squares (OLS) and Poisson regression analyses were used with a nationwide agricultural land parcel Geographic Information System (GIS) database (Tokyo metropolitan area = 1,939,162 and Osaka metropolitan area = 1,507,072 parcels), in Japan, to specify the farmland locations and calculate the extent of urban sprawl. The results revealed that more than 50% of farmlands in the targeted areas were located within 4 km from the boundaries of densely inhabited districts (DIDs). Furthermore, with a decreasing distance from a DID, the urban sprawl had more positive effects on farmland parcel sizes and farm-diversified activities. These findings imply that PUA has a wider presence in Japan, and the peri-urban farmers may be capable of utilizing the multifunctional nature of intensively sprawled urban environments.
