Agricultural Modernization Loan Limit Rises to 200 Million Yen October 1st

In the Official Gazette dated September 28, the government promulgated a Cabinet Order (Cabinet Order No. 299 of 2026) establishing the enforcement date of the Act to Partially Amend the Agricultural Modernization Fund Loan Act (Act No. 17 of 2026) as October 1, 2026, as well as a Cabinet Order (Cabinet Order No. 300 of 2026) amending the Enforcement Order of the same Act. Starting October 1, the loan limit for agricultural modernization funds will be increased from 18 million yen to 200 million yen, and the loan period will be extended from 15 years to 20 years. Both Cabinet Orders were signed by Prime Minister Sanae Takaichi and Minister of Agriculture, Forestry and Fisheries Kazuo Yana and were promulgated on the same date.

The Agricultural Modernization Fund Loan Act (Act No. 202 of 1961) is a system that enables farmers and agricultural cooperatives to procure funds necessary for the introduction of agricultural facilities and machinery on long-term, low-interest terms. The current amended Act comprehensively reviews the provisions of the Enforcement Order of the Agricultural Modernization Fund Loan Act (Cabinet Order No. 346 of 1961), which stipulates the loan conditions; accordingly, the Cabinet Order on the enforcement date and the Cabinet Order amending the Enforcement Order were promulgated simultaneously.

Loan Limit Expanded Over Tenfold from 18 Million Yen to 200 Million Yen

Cabinet Order No. 300 amends “18 million yen” to “200 million yen” in Article 4 of the Enforcement Order. This results in the loan limit per case being increased more than tenfold.

• Loan Limit: From 18 million yen to 200 million yen
• Legal Basis: Article 4 of the Enforcement Order of the Agricultural Modernization Fund Loan Act
• Enforcement Date: October 1, 2026

Loan Period Unified from 15 Years to 20 Years

Cabinet Order No. 300 amends the table in Article 2 of the Enforcement Order, increasing “15 years” in each item to “20 years.” Previously, there were special exceptions of 18 years for specific funds and 20 years for loans to agricultural cooperatives, etc.; these have been removed to unify the period at 20 years.

• Loan Period: From 15 years to 20 years
• Removal of special exceptions: 18 years for specific funds and 20 years for agricultural cooperatives, etc.
• Removal of the proviso of the same article to reorganize the categories of eligible persons

Partnership Companies and the Norinchukin Bank Added as Loan Targets

Cabinet Order No. 300 amends Article 1 of the Enforcement Order to add new categories of loan targets. A new Item 9 is established for partnership companies whose primary business is agricultural promotion projects and where persons listed in Article 2, Paragraph 1, Items 1 through 3 of the Act constitute the majority of the partners executing the business. Additionally, “in the case of a joint-stock company” is amended to “or the Norinchukin Bank,” reorganizing the former provisions regarding partnership companies.

• New Addition: Partnership companies whose primary business is agricultural promotion projects (Item 9)
• Addition: Norinchukin Bank
• Existing Item 8 is shifted down to Item 10

Summary of Related Ministerial Ordinances and Special Provisions for the Great East Japan Earthquake

With the enforcement of Cabinet Order No. 300, Ministry of Agriculture, Forestry and Fisheries (MAFF) Ordinance No. 69 was promulgated on the same day. This ordinance partially amends the Enforcement Regulations of the Act on Special Measures for Fukushima Reconstruction and Revitalization (MAFF-related) and the Enforcement Regulations of the Act on Promotion of Farmland Intermediate Management Business, changing the referenced items of Article 1 of the Enforcement Order to “Item 5 or Items 7 through 9.” The supplementary provisions of Cabinet Order No. 300 deleted the re-reading provision in Article 3, Paragraph 3 of the Cabinet Order concerning the enforcement of MAFF-related provisions of the Act on Special Financial Assistance and Grants for Dealing with the Great East Japan Earthquake (Cabinet Order No. 132 of 2011).

• Enforcement date of the ordinance: October 1, 2026
• Subjects of amendment: Enforcement Regulations of the Act on Special Measures for Fukushima Reconstruction and Revitalization, Enforcement Regulations of the Act on Promotion of Farmland Intermediate Management Business
• Deletion of re-reading provisions for earthquake special exceptions (15-year, 18-year, and 21-year terms)

Due to the enforcement on October 1, the conditions for financing through farmers, agricultural cooperatives, newly added limited liability companies (Godo Kaisha), and the Norinchukin Bank will change significantly. The framework of a 200 million yen limit and a 20-year term will force those on the ground planning large-scale facility development or strengthening of management foundations to restructure their procurement plans.

Sources

• Cabinet Order establishing the enforcement date of the Act to partially amend the Act on Loans for Modernization of Agriculture (Cabinet Order No. 299 of 2026), promulgated September 28, 2026
• Cabinet Order to partially amend the Enforcement Order of the Act on Loans for Modernization of Agriculture (Cabinet Order No. 300 of 2026), promulgated September 28, 2026
• MAFF Ordinance No. 69 (Ministerial Ordinance to partially amend the Enforcement Regulations of the Act on Special Measures for Fukushima Reconstruction and Revitalization (MAFF-related) and the Enforcement Regulations of the Act on Promotion of Farmland Intermediate Management Business), promulgated September 28, 2026