Japan's Ministry of Agriculture, Forestry and Fisheries has opened public comment on a draft Cabinet Order that would loosen the terms of Agricultural Modernization Loans, a lending program established under the Agricultural Modernization Financing Act. Two numbers do the work here: the cap on total borrowing by an individual farmer would rise more than tenfold, from ¥18mn to ¥200mn, and for loan categories currently capped at 15 or 18 years, the maximum repayment term would extend to within 20 years.
| Feature | Current Rule | Draft Amendment |
|---|---|---|
| Maximum repayment term | 15 or 18 years for the affected categories | 20 years |
| Individual borrower cap | ¥18mn | ¥200mn |
| Qualifying majority owner (agricultural promotion stock companies) | Entities listed in Article 2(1)(i)-(iii) of the underlying Act | Adds a specified agricultural-sector financial institution to the list of qualifying majority owners |
The order implements a law passed in the 221st session of the Diet (Act No. 17 of 2026) that revised the underlying Agricultural Modernization Financing Act. MAFF's own reasoning, filed with the draft, points to rising borrowing needs as farms consolidate, invest in productivity and chase higher value-added output: the ministry says the loan categories still set at 15 or 18 years no longer match the scale of financing farmers are seeking.
The draft also widens who can own an eligible corporate borrower. Under current rules, a stock company mainly engaged in "agricultural promotion business" (processing, storage, distribution or contracted farm work using agricultural products) only qualifies for the loans if the entities listed in Article 2, paragraph 1, items 1 through 3 of the underlying Act hold a majority of its voting shares. The amendment adds a specified agricultural-sector financial institution to that list of qualifying majority owners.
Comment runs from August 17 through September 6, a roughly three-week window rather than the usual 30 days. MAFF says it shortened the period because the Cabinet Order needs to be in force alongside the amended Act, which takes effect October 1. The ministry says it will not respond to individual submissions but will weigh them before finalizing the text. Until then, the ¥200mn cap, the 20-year term and the ownership-rule change remain proposals, not law.