Friday, April 3, 2009

Young people see future in farming in Japan

Pic:Masachika Ogihara, who works the land in Nagano Prefecture, is starting up
a magazine to spread the word about young farmers

Enthusiasm growing for a career commonly seen as a dead end
Masachika Ogihara once dreamed of becoming an engineer, but now he's convinced he made the right choice to be a farmer — a career the 29-year-old sees as having a huge potential for growth contrary to the common notions

"Farming is exciting and cool. A lot of money can be made if you are creative enough," said Ogihara, who manages about 65 hectares of paddies and fields in Nagano Prefecture. "But not many people know this."

That may be so, but there are signs of budding interest in farming, especially among young people. And it isn't necessarily because a long economic winter appears to have set in.
Farming has suffered from a negative image over much of the past half century, a period in which the economy grew mainly on the back of a successful manufacturing sector.

Farming has often been portrayed as ailing, unprofitable and wearisome, among other things.
It is nothing out of the ordinary for lawmakers and government officials to lament the aging workforce, noting that about 60 percent of the nation's commercial farmers are over 65.
But what shouldn't be overlooked is that the percentage includes the people who farm as a side business.

When it comes to the 1 million so-called business farmers, who draw more than 50 percent of their income from crops, about 70 percent are under age 65, according to the Agriculture, Forestry and Fisheries Ministry.

A ministry study found that nearly 10,000 people 29 and younger started farming careers in 2007, of which about 2,200 were women.

Whether these numbers are large enough or too small remains to be seen, but the future of farming does not appear to be all doom and gloom.

Although the number of commercial farmers has fallen to about 3 million from a peak of about 15 million in 1960, the supply of domestic agricultural and livestock products hasn't changed much. This means per capita productivity is five times better.

It is also becoming more common for people who used to work in different industries to enter agriculture as a career, even before the financial crisis swept the globe last year.

Susumu Tanaka, 37, who used to make a fortune in the financial sector, is one of many who believe farming has good prospects.

After working at a Japanese bank and a foreign insurance company for 10 years, Tanaka turned to farming and set up his own company, Salad Bowl, in Chuo, Yamanashi Prefecture, in 2004.
"Like any other industry, farmers who use their brains and have the ability to supply good products are capable of rapidly expanding their operations," Tanaka said. "It's as simple as that."
Protection in the agriculture sector from stiff market competition means there is room for growth for him and other entrepreneurial-minded farmers, he said.

Salad Bowl's farmland has increased from 0.6 hectare to 9 hectares in the last five years, with eight people between the ages of 19 and 32 currently working there to grow about 30 kinds of vegetables.

Tanaka also formed a nonprofit organization in 2005 to run an agriculture school on the farm.
"Until I started my business, I was not aware so many young people were hoping to engage in agriculture," he said. "A weak point of the sector is a lack of practical training programs for those wishing to be farmers."

The school has been teaching the basics to about 100 students a year.

Nahoko Takahashi, 27, who grows rice and vegetables in Murayama, Yamagata Prefecture, has been training female university students for two years.Giving them the opportunity to experience the pleasure of farming has reinforced her belief that women can play a big role in changing the industry's image.
This spring, Takahashi will launch a "young women's only farm."

"Women are sensitive to the latest trends. I think we can breathe new life into agriculture," said Takahashi, who will run the new farm with "nice-looking girls" and take advantage of this branding strategy when selling their products in Tokyo.

To start with, she has secured a hectare of land to grow sweet tomatoes in five different colors — orange, yellow, red, green and black — and rice. She plans to use herbal medicines as fertilizer, the latest thing in farming.

As part of efforts to give added impetus to the changing environment, Ogihara, the young farmer in Nagano who also serves as head of the National Liaison Council of Rural Youth Clubs, is getting ready to publish a stylish farming magazine targeting readers under 35.







Japan gives cash to jobless foreigners to go home


Japan is offering $3,000 for a plane ticket home to some foreigners who have lost their jobs, a sign of just how bad the economic slump has gotten.


The program, which began Wednesday, applies only to several hundred thousand South Americans of Japanese descent on special visas for factory work. The government's motivation appears to be three-fold: help the workers get home, ease pressure on the domestic labor market and potentially get thousands of people off the unemployment rolls.


"The program is to respond to a growing social problem," said Hiroshi Yamashita, an official at the Ministry of Health, Labor and Welfare, referring to joblessness, which has climbed to a three-year high of 4.4 percent.


But there may not be too many takers for the 300,000 yen ($3,000) handout, plus 200,000 yen ($2,000) for each family member. The money comes with strings attached: The workers cannot return to Japan on the same kind of visa.


Given Japan's strict immigration laws, that means most won't be able to come back to work in Japan, where wages are higher than in Latin America.


"It is not necessarily a totally welcome deal," said Iwao Nishiyama, of the Association of Nikkei & Japanese Abroad, a government-backed organization that connects people of Japanese ancestry.
The government's offer -- as well as the backdrop of history that has given birth to a vibrant community of South Americans of Japanese ancestry here -- highlight this nation's complex views on foreigners and cultural identity.


Many Japanese consider their culture homogenous, even though there are sizeable minorities of Koreans and Chinese, as well as Ainu, the indigenous people of northern Japan.


In the early 1990s, Tokyo relaxed its relatively tight immigration laws to allow special entry permits for foreigners of Japanese ancestry in South America to make up for a labor shortage at this nation's then-booming factories.


They took the so-called "three-K" jobs, standing for "kitsui, kitanai, kiken" -- meaning "hard, dirty, dangerous" -- jobs Japanese had previously shunned.


Before their arrival, many such jobs had gone to Iranians and Chinese. But the government saw their influx -- much of it illegal -- as a problem and was eager to find a labor pool it felt would more easily adapt to Japanese society, said Nishiyama of Japanese Abroad association.
So by virtue of their background, these foreigners of Japanese descent -- called "Nikkei" in Japanese -- were offered special visa status.


"They may speak some Japanese, and have a Japanese way of thinking," Nishiyama said. "They have Japanese blood, and they work hard."


The workers are mainly descendants of Japanese who began emigrating to Latin America around the turn of the last century.


Brazil has the biggest population of ethnic Japanese outside Japan, numbering about 1.5 million. Last year marked the 100th year of Japanese immigration to Brazil. Initially many ventured to toil in coffee plantations and other farms.


Brazilians are the most numerous of such foreigners in Japan, totaling about 310,000 overall in 2007, the latest tally available. Peruvians are next at 59,000. Those from other South American nations were fewer at 6,500 Bolivians, 3,800 Argentineans and 2,800 Colombians.


Nearly all work manufacturing jobs, many through job referral agencies. Major companies, like Toyota Motor Corp., have relied on contract employees to keep a flexible plant work force.
Foreign workers in Japan are entitled to the basic unemployment and other benefits that Japanese workers get. Though rates vary, Japan provides about 7,000 yen ($70) a day in unemployment -- which would equal about $2,100 per month.


Still, Nikkei are sometimes victims of discrimination in Japan, as they are culturally different and aren't always fluent in Japanese. As a result, many have had a hard time blending into Japanese society.Now, as the economy worsens, many find themselves out of jobs.


The government doesn't track the number of jobless foreigners, but the number of foreigners showing up at government-run centers for job referral has climbed in recent months to 11 times the previous year at more than 9,000 people, according to the Ministry of Health, Labor and Welfare.


Overall, the government estimates that some 192,000 temporary workers who had jobs in October, including Japanese, are expected to be jobless by June. Experts fear such numbers are growing.


In addition to the handout offer the government is also helping Nikkei find jobs in Japan.
"These are like two sides of the same effort to assist people of Japanese ancestry," said Yamashita of the labor ministry.


Tokyo has already allocated 1.08 billion yen ($10.9 million) for training, including Japanese language lessons, for 5,000 foreign workers.


Fausto Kishinami, 32, manager at a Brazilian restaurant in Oizumimachi, a city with a large Japanese-Brazilian population, said none of his friends are applying for the government money because of the no-return condition.


"I don't think people should take that money," he said, adding that he hasn't gone home in eight years, and is focused on his work in Japan.


Some 20 percent to 30 percent of the South American foreigners of Japanese ancestry are estimated to have already returned home, said Nishiyama. They have paid their own way back and may return, once a recovery brings fresh opportunities, he said.

European Tax Havens

United Kingdom
After-tax income on $200,000 earnings: $137,000
Notable loophole: Foreign income tax exempt
Big city rental rate: $5,680

Switzerland
After-tax income on $200,000 earnings: $177,000
Notable loophole: Cantons can charge extra income tax
Big city rental rate: $2,510

Monaco
After-tax income on $200,000 earnings: $200,000
Notable loophole: Some inheritance and gift taxes and stamp duties
Big city rental rate: $8,250


Lichtenstein
After-tax income on $200,000 earnings: $164,000
Notable loophole: Net worth taxed 1%; capital gains treated as income
Big city rental rate: $2,840





Jersey & Guernsey
After-tax income on $200,000 earnings: $160,000
Notable loophole: No corporate tax in either country starting in 2008




Italy
After-tax income on $200,000 earnings: $175,000
Notable loophole: Very low personal tax on $272,000 or less near Lake Lugano
Big city rental rate: $3,540



Isle of Man

After-tax income on $200,000 earnings: $164,000
Notable loophole: No capital gains, inheritance or gift taxes





Ireland
After-tax income on $200,000 earnings: $140,384
Notable loophole: Foreign income tax exempt
Big city rental rate: $2,720






Gibraltar
After-tax income on $200,000 earnings: $110,000
Notable loophole: Overseas income, if taxed locally, are exempt from Gibraltar taxes



Austria
After-tax income on $200,000 earnings: $200,000
Notable loophole: Non-citizens don't have to pay Austria's taxes
Big city rental rate: $1,800








The World's Top Tax Havens













United States
What's that? Yes, seven states offer a version of an "asset protection" trust, but they aren't always bullet proof. Assets can't be transferred to avoid creditors, and creditors having claims on the assets before they're put in the trust have two years or more to get a judgment against them.













Lichtenstein
Foreigners can open trusts anonymously by registering them through a local attorney or trustee. But watch out. Lichtenstein was the epicenter of a scandal earlier this year involving spies hired by the German tax authority to check up on German citizens "offshoring" there.














Bermuda
No income tax, profit or capital gains taxes and no withholding tax. Plus pink sand. Whole companies, like Tyco International, have moved here, much less individuals opening accounts.













Dubai
Dubai offers a vast talent pool and low taxes. The emirate is just one hour ahead of Moscow, a five-hour flight, offering obvious proximity advantages to Russian investors and funds.