**2.2 Establishment of forest producer cooperatives**

Under the Act for modernizing common forest rights, subsidy programs to promote the modernization of rights started in 1967. The following is a statistical summary of this 43 year program, which ran from fiscal year 1967 and to fiscal year 2009 (Forestry Agency, 2011b): 6,651 places were given permission to modernize rights. The total number of common forest rights holders before modernization was 432,906, and 423,618 were granted property rights after modernization. The total acreage8 of common forest whose policies were modernized was 575,125 ha. After the modernization procedure, 52.4% of the land was

Recent Problems and New Directions

Fig. 2. The number of forest producer cooperatives (1967-2009) Source: Forestry Agency (1969-80, 1992, 2005, 2006–2011)

**2.3 Management problems of the forest producer cooperatives** 

several issues. Three such challenges are highlighted below.

1971 do not completely connect to that after 1972.

for Forest Producer Cooperatives Established in Common Forests in Japan 165

Note: End of fiscal year is shown. The figures for the period of 1967-71 represent the number of forest producer cooperatives, which were required to answer the survey conducted by the Forestry Agency in order to compile the Forestry Cooperative Statistics. Thus, the data before

Based on the statistics10 for fiscal year 2009, 67.9% of the forest producer cooperatives was founded by the modernization procedure. There were about 247,000 cooperative members, including 7,000 living outside of the community. The common forest rights, which were relinquished at modernization, were strictly limited to the households living onsite. Only about 1% of the cooperatives had full-time executives; thus, nearly all cooperatives were organizationally weak. The total forest area owned by forest producer cooperatives was approximately 357,000 ha, including 10.8% of profit-sharing forest11. The percentage of planted forest to the total forest area, of which the main species were *Cryptomeria japonica* and *Chamaecyparis obtusa*, was 50.3%. In fiscal year 2009, total newly planted area was 147 ha, the total area for tending operations was 5,045 ha, the total area for final cutting was 109 ha, and the total area for thinning was 1,007 ha, representing 0.04%, 1.41%, 0.09%, and 0.28% of the total area, respectively. As the area for final cutting and thinning was small, the income from cutting was generally low. The forest producer cooperatives are now facing

The first problem is due to the age-class distribution of the planted forests. As planting activities were generally conducted just after the cooperative started from the mid-1960s to mid-1980s, the current average age is 30 or 40 years. Before the modernization procedure, the main species of the common forest were broad-leaved trees for the production of fuelwood or charcoal; thus, the area of coniferous trees tended to be small. Accordingly, most of the planted forest could not produce income via, for example, timber sale, through final cutting. In addition, certain age classes of tree require thinning. However, at the current

classified as forest producer cooperative, 41.0% was divided equally among common forest rights holders, 5.5% became jointly-owned private forest, and 1.0% was classified as agricultural producer cooperative (Forestry Agency, 2011b). According to these statistics, 59.0% of the land was classified into some form of cooperative, and more than half of the modernized area became forest owned by forest producer cooperatives. The main utilizations of the land after modernization were forestry (97.8%), agriculture (1.9%), and other activities (0.3%). As already mentioned, the main objective of the Act was to increase agriculture and forestry use in the common forest, which it achieved.

The annual areas of forest that were modernized over time are shown in Figure 1. The modernization procedure was conducted most intensively during the latter half of 1960s through the 1980s, with a peak of approximately 53,000 ha processed in 1974. After the 1980s it tended to decrease, and just 950 ha were processed in 2009. The proportion of land converted to forest producer cooperative of the total land area that was modernized from 1967 to 2008 was > 50%. However, this proportion has decreased gradually. By contrast, the percentage of private ownership increased.

There were 3,459, 3,364, and 3,224 forest producer cooperatives in all of Japan at the end of fiscal years 1999, 2004, and 2009, respectively. The number is now decreasing due to several problems, which are discussed below. Figure 2 shows the number of forest producer cooperatives. Since about 1996, the annual change has been negative (with one exception); that is, more cooperatives have been dissolved than have been newly founded9.

Fig. 1. The areas of common forest modernized over time (1967-2009) Source: Forestry Agency (1992, 2005, 2006–2011) Note: Fiscal years are shown.

classified as forest producer cooperative, 41.0% was divided equally among common forest rights holders, 5.5% became jointly-owned private forest, and 1.0% was classified as agricultural producer cooperative (Forestry Agency, 2011b). According to these statistics, 59.0% of the land was classified into some form of cooperative, and more than half of the modernized area became forest owned by forest producer cooperatives. The main utilizations of the land after modernization were forestry (97.8%), agriculture (1.9%), and other activities (0.3%). As already mentioned, the main objective of the Act was to increase

The annual areas of forest that were modernized over time are shown in Figure 1. The modernization procedure was conducted most intensively during the latter half of 1960s through the 1980s, with a peak of approximately 53,000 ha processed in 1974. After the 1980s it tended to decrease, and just 950 ha were processed in 2009. The proportion of land converted to forest producer cooperative of the total land area that was modernized from 1967 to 2008 was > 50%. However, this proportion has decreased gradually. By contrast, the

There were 3,459, 3,364, and 3,224 forest producer cooperatives in all of Japan at the end of fiscal years 1999, 2004, and 2009, respectively. The number is now decreasing due to several problems, which are discussed below. Figure 2 shows the number of forest producer cooperatives. Since about 1996, the annual change has been negative (with one exception);

> Forest producers' cooperatives Agricultural producers cooperatives

Jointly-owned private forest Private forest by equal divide

1967 75 80 85 90 95 2000 05 09

Fig. 1. The areas of common forest modernized over time (1967-2009)

Source: Forestry Agency (1992, 2005, 2006–2011)


that is, more cooperatives have been dissolved than have been newly founded9.

agriculture and forestry use in the common forest, which it achieved.

percentage of private ownership increased.

0

Note: Fiscal years are shown.

10

20

30

40

50

60

(1,000 ha)

Fig. 2. The number of forest producer cooperatives (1967-2009) Source: Forestry Agency (1969-80, 1992, 2005, 2006–2011)

Note: End of fiscal year is shown. The figures for the period of 1967-71 represent the number of forest producer cooperatives, which were required to answer the survey conducted by the Forestry Agency in order to compile the Forestry Cooperative Statistics. Thus, the data before 1971 do not completely connect to that after 1972.
