Impact of land readjustment project on farmland use and structural adjustment: The case of Niigata, Japan

This paper examines the impact of farmland readjustment projects on farmland use and structural adjustment in Niigata, Japan. We use census data of rural communities for 1990 and 2000 to conduct pooled regression, first-difference, difference-in-differences, and propensity score matching estimations. We find positive impact of farmland readjustment projects in alleviating farmland abandonment and in facilitating outsourcing of agricultural works and farmland rental. The results suggest that farmland consolidation may be an effective option to resolve farmland fragmentation and to promote structural adjustment in concentrating farmland to efficient farmers which is a premise for strengthening the agricultural sector under economies of scale.