Agriculture, farming, and fishing form the primary sector of industry of the Japanese economy together with the Japanese mining industry, but together they account for only 1.3% of gross national product. Only 20% of Japan's land is suitable for cultivation, and the agricultural economy is highly subsidized.
Agriculture, forestry, and fishing dominated the Japanese economy until the 1940s, but thereafter declined into relative unimportance (see Agriculture in the Empire of Japan). In the late 19th century (Meiji period), these sectors had accounted for more than 80% of employment. Employment in agriculture declined in the prewar period, but the sector was still the largest employer (about 50% of the work force) by the end of World War II. It was further declined to 23.5% in 1965, 11.9% in 1977, and to 7.2% in 1988. The importance of agriculture in the national economy later continued its rapid decline, with the share of net agricultural production in GNP finally reduced between 1975 and 1989 from 4.1% to 3% In the late 1980s, 85.5% of Japan's farmers were also engaged in occupations outside farming, and most of these part-time farmers earned most of their income from nonfarming activities.
Japan's economic boom that began in the 1950s left farmers far behind in both income and agricultural technology. They were attracted to the government's food control policy under which high rice prices were guaranteed and farmers were encouraged to increase the output of any crops of their own choice. Farmers became mass producers of rice, even turning their own vegetable gardens into rice fields. Their output swelled to over 14 million metric tons in the late 1960s, a direct result of greater cultivated area and increased yield per unit area, owing to improved cultivation techniques.
Three types of farm households developed: those engaging exclusively in agriculture (14.5% of the 4.2 million farm households in 1988, down from 21.5% in 1965); those deriving more than half their income from the farm (14.2% down from 36.7% in 1965); and those mainly engaged in jobs other than farming (71.3% up from 41.8% in 1965). As more and more farm families turned to nonfarming activities, the farm population declined (down from 4.9 million in 1975 to 4.8 million in 1988). The rate of decrease slowed in the late 1970s and 1980s, but the average age of farmers rose to 51 years by 1980, twelve years older than the average industrial employee. Historically and today, women farmers outnumber male farmers. Government data from 2011 showed women heading more than three-quarters of new agribusiness ventures.