Factors influencing pesticide and fertilizer use and policy options toward more sustainable farming systems: An empirical analysis of Kyushu agriculture

Abstract

This study examines the factors influencing pesticide and fertilizer use and analyzes the possible impact of reducing the application rates of the two inputs on product supply, farm income, and input structure. A land-productivity-specific model is estimated using the data of farm households from Kyushu. The substitutability and complementarity between factors are found to be the main determinants influencing the use of pesticides and fertilizer, while the effects of product prices are not determinate. The conditions for reducing the application rates of the two inputs have been favorable, and consequently the widespread adoption of low-input sustainable farming (LISF) systems is likely to be realized at lower opportunity cost. Price or tax measures aimed at restricting agrichemical use seem not to be effective as might be expected. The policy measures making LISF practices more profitable may effectively motivate farmers to adopt these practices. A functional transition of regional farming service system from agrichemical-using to more environmentally sensitive practices is also required.