The Bright and Dark Sides of Introducing Smart Farming Technology (SFT) in Japan—Is There a Breakthrough?

Rapid population decline, aging, and the abnormal high-temperature phenomenon that has swept across both the Korean Peninsula and the Japanese archipelago are key challenges threatening the very survival of agriculture in both countries. In response, ‘smart farming technology (SFT)’ has emerged rapidly as a potential savior, but in the field, concerns persist that “even if expensive machines are brought in, only debt increases.” Based on three Japanese research cases presented at a recent academic symposium of the Korean Society of Livestock Management—mountainous rice farming, facility horticulture in Fukuoka, and large-scale upland farming and dairy in Hokkaido—this article takes an in-depth look at the real economic utility of smart agriculture and the conditions needed for its successful settlement in the field.

Hyogo Prefecture’s ‘Amnak’ overcame challenges through business diversification and subsidy support policies
According to research by Professor Haruhiko Iba (伊庭 治彦) of Shujitsu University in Japan, hilly and mountainous areas (HM), which account for about 30–40% of Japan’s table rice cultivation area (1.367 million ha as of 2025), are facing a crisis of collapse due to small-scale plot structures and high production costs.

The results were noteworthy when the research team simulated scenarios for introducing smart farming technology (SFT) based on a rice cultivation area of 12.25 ha. With the introduction of a GPS tractor (7.81 million yen, 124% of the price of a conventional model), work time was reduced from 44.8 hours per ha to 29.4 hours, and with drone-based pest control (940,000 yen), work time dropped sharply from 102.4 hours to 21.8 hours. 

However, in terms of management performance, when the ordinary profit under the conventional method showed a deficit of 19.98 million yen, the scenario introducing drones, GPS tractors, and rice transplanters together (SFT2) also recorded a deficit of 19.95 million yen. This shows that the increase in fixed costs (depreciation expenses) resulting from equipment introduction offsets the labor-saving effect, ultimately leaving the deficit at a similar level.

A successful case that overcame this is the agricultural corporation 'Amnak' in Hyogo Prefecture. They diversified their business by using idle labor secured through the introduction of smart technology for food processing and sales (tofu, rice cakes, etc.) and contract farming. While rice monoculture alone was unprofitable, the processing division generated a large surplus, balancing the overall books. In addition, a hybrid support policy combining one-time introduction subsidies and annual per-area subsidies played a decisive role in lowering the initial fixed-cost burden and ensuring sustainability.

Facility horticulture tomato farms in Fukuoka overcome heat damage through learning and data

Abnormal high temperatures caused by climate change are also tightening the noose on farms. The case of tomato farm A (management entity A) in District C of Fukuoka Prefecture, presented by Professor Yoshihiro Uenishi (上西良廣) of Kyushu University, shows how important the 'settlement process' of technology is.

Management entity A (cultivation area 58a) built a smart system linking gas heat pumps (GHP, about 3–4 million yen for three units) with an integrated environmental control device (Profinder NEXT80, 3 million yen for three units). During the summer high-temperature period (July–August), this farm actively used nighttime cooling with GHP and drone-based application of heat-shielding agents to greenhouse roofs. As a result, while nearby farms suffered losses of 70–80% due to high temperatures and heat damage and gave up on their crops, this farm held the damage rate to the 20–30% range and stably maintained a high yield (productivity) of 24–25 tons.

Professor Uenishi analyzed the technology settlement process of this management entity according to Rogers’ five-stage innovation decision model. Professor Uenishi said, “For the rapid spread of smart agriculture technology, institutional support that lowers cost barriers at the initial introduction stage—such as pilot-operation price support or subsidies—is essential, and productivity does not improve simply by bringing in smart devices.” He added, “The case of Mr. S of management entity A shows that building linkages with educational networks (JA agricultural cooperatives, seminars, consultants) through which plant physiology knowledge can be learned is the single most critical key to successful technology settlement.”

He also emphasized that in a climate change situation where high-temperature and heat damage are becoming entrenched, data-based integrated environmental control technology is not merely a tool for improving productivity but the ultimate climate change adaptation measure that makes sustainable horticultural management possible.

After introducing milking robots, milk yield increased by 21.6% and days open shortened by 13.3%
Hokkaido, a stronghold of Japanese agriculture, has an average cultivated land area of more than 30 ha per farm household and a strong foundation for full-time farm self-reliance. Here, the labor shortage problem is being rapidly replaced with smart technology (capital).

According to research by Professor Shunsuke Miyake (三宅 俊輔) of Obihiro University of Agriculture and Veterinary Medicine, who presented that day, large upland crop farms of 60 ha or more introduced large tractors (270 horsepower), variable-rate fertilizer applicators, and automatic steering systems, reducing direct labor hours by about 50%, from 2,493 hours to 1,243 hours. This result was achieved while deploying the same level of labor as before—one family worker and 0.5 hired workers—and it was found that with such a system, management was possible even at a scale of 90 ha.

In addition, Professor Miyake introduced a case in the dairy management sector where productivity improved significantly through the introduction of milking robots. According to Professor Miyake’s presentation, analysis of a virtual model with 150 multiparous cows showed that milk yield per animal increased by 2,035 kg, from 9,436 kg (before introduction) to 11,471 kg (after introduction). In addition, through estrus and calving monitoring devices, days open (the non-pregnant period) were shortened by 18 days, from 135 days to 117 days, demonstrating improved reproductive performance.
 
These results came after investing 800 million yen in a free-stall barn and four milking robots. After introduction, simple labor time was greatly reduced, while it became possible to focus on feeding and management by analyzing individual animal data collected from the milking robots. Through this, reproductive performance improved, and by additionally producing and selling about 130 head of Wagyu annually, the farm secured high profitability.

However, Professor Miyake said, "It is true that smart technology greatly contributes to improving labor productivity and advancing management control (data-based decision-making), but because it entails the burden of repaying investment funds amounting to hundreds of millions of yen, it is necessary to examine whether this can be overcome through realized productivity gains.” He also warned, “For small- and medium-scale farms, barriers to entry and concerns about accelerated business closure remain ever-present."