MOF and MAFF to Uniformly Raise Agriculture and Fisheries Fund Rates

The Ministry of Finance and the Ministry of Agriculture, Forestry and Fisheries published a series of notifications in the Official Gazette dated October 20, 2026 (Reiwa 8), uniformly raising the interest rates for Agricultural Modernization Funds, Fisheries Modernization Funds, and Small and Medium-sized Fisheries Loan Guarantees. The loan interest rate for Agricultural Modernization Funds will be raised from 3.3% per annum to 3.4% per annum, and the upper limit of the interest subsidy rate will be raised from 0.1% per annum to 0.2% per annum. Both changes will take effect on October 20, the date of publication.

Legal Basis and Signatures: Both Ministries Publish Notifications on the Same Day

These revisions are based on the provisions of Article 2, Paragraph 3, Item 4 and Article 3, Paragraph 4 of the Agricultural Modernization Fund Loan Act (Act No. 202 of 1961); Article 2, Paragraph 3, Item 4 and Article 3, Paragraph 4 of the Fisheries Modernization Fund Loan Act (Act No. 52 of 1969); Article 69, Paragraph 1 of the Small and Medium-sized Fisheries Loan Guarantee Act (Act No. 346 of 1952); Article 59, Paragraph 1 of the Agricultural Credit Guarantee Insurance Act (Act No. 204 of 1961); Supplementary Provision Article 35 of the Japan Finance Corporation Act (Act No. 57 of 2007); and Supplementary Provision Paragraph 11 of the Act on Promotion of Strengthening Agricultural Management Foundations (Act No. 65 of 1980).

The notifications were signed jointly by Minister of Finance Satsuki Katayama and Minister of Agriculture, Forestry and Fisheries Shin Takebe. This includes Ministry of Finance Notifications No. 31 through No. 33, and Ministry of Agriculture, Forestry and Fisheries Notifications No. 1575 through No. 1578.

Agricultural Modernization Funds: Loan Interest Rate to 3.4% Per Annum

• Ministry of Agriculture, Forestry and Fisheries Notification No. 1575 (Agricultural Modernization Fund Loan Act, Article 2, Paragraph 3, Item 4): The interest rate determined by the Minister of Agriculture, Forestry and Fisheries is revised from 3.3% per annum to 3.4% per annum.
• Ministry of Agriculture, Forestry and Fisheries Notification No. 1577 (Supplementary Provision Paragraph 11 of the Act on Promotion of Strengthening Agricultural Management Foundations): Similarly raised from 3.3% per annum to 3.4% per annum.
• Ministry of Agriculture, Forestry and Fisheries Notification No. 1578 (Agricultural Modernization Fund Loan Act, Article 3, Paragraph 4): The upper limit of the interest subsidy rate is doubled from 0.1% per annum to 0.2% per annum.

Fisheries Modernization Funds and Guarantees: Increases Across All 11 Categories

Ministry of Agriculture, Forestry and Fisheries Notification No. 1576 amends the Enforcement Regulations of the Fisheries Modernization Fund Loan Act (Ministry of Agriculture, Forestry and Fisheries Notification No. 2303 of November 29, 2016), raising the upper limit of the loan interest rate (Article 7) from 3.3% per annum to 3.4% per annum for all 11 categories of funds. The upper limit of the interest subsidy rate (Article 8) will also become 0.2% per annum from 0.1% per annum.

Ministry of Finance Notification No. 33 raised the upper limit of interest based on Article 69, Paragraph 1 of the Small and Medium-sized Fisheries Loan Guarantee Act from 4.55% per annum to 4.65% per annum. The mechanism where the upper limit rate is used for calculation if the interest rate stipulated in the loan conditions exceeds the limit will be maintained.

Japan Finance Corporation and Credit Guarantee Insurance: Interest Rate Tables by Redemption Period Also Revised

Ministry of Finance Notice No. 31 (Article 35 of the Supplementary Provisions of the Japan Finance Corporation Act) raised the interest rate determined by the competent minister from 3.3% per annum to 3.4% per annum, and revised the category within 6.5% per annum from 3.45% to 3.55%, and the category within 7.5% per annum from 4.45% to 4.55%. The interest rates by redemption period in Appended Table 5, Item 1-1 were also raised overall, such as increasing the rate for 5 years or less from 2.15% to 2.35% and setting the longest period (over 17 years up to 35 years) at 3.4%.

Ministry of Finance Notice No. 32 (Article 59, Paragraph 1 of the Agricultural Credit Guarantee Insurance Act) raised the interest rate for cases where the borrowing condition rate exceeds 4.55% per annum to 4.65% per annum, and revised the interest rate table by redemption period by the same margin.

Transitional Measures: Existing Loans Follow Previous Examples

The supplementary provisions of each notice stipulate that funds lent prior to the date of enforcement, or loans pertaining to loan agreements concluded by the Japan Finance Corporation prior to the date of enforcement, shall continue to follow previous examples. The new interest rates will apply to loans established on or after October 20.

These revisions directly affect the borrowing costs of farmers and fishers; however, the fact that the upper limit of the interest subsidy rate has doubled from 1 rin (0.1%) to 2 rin (0.2%) partially offsets the increase in the actual burden on the funds eligible for the subsidy. Note that the notices specify the upper limit, and the interest rate applied to individual loans is determined in accordance with the requirements of each system.

Source: Official Gazette, Tuesday, October 20, Reiwa 8 / Ministry of Finance Notices No. 31, 32, and 33; Ministry of Agriculture, Forestry and Fisheries Notices No. 1575, 1576, 1577, and 1578.