Japan's largest group of rice collectors and wholesalers is raising their advance payments to rice farmers. An analyst says this signals that the price of autumn harvests is likely to be high again this year.



The local branches of the Japan Agricultural Cooperatives Group determine the payment amount to rice farmers every year prior to the harvest season. The farmers use the prepayments to purchase seedlings, fertilizers and agricultural equipment needed for the following year's harvests. The JA Group's prepayments are a benchmark for setting the market price of the staple grain.



NHK has found that in five prefectures, cooperatives are offering more than 30,000 yen, or over 200 dollars, per 60 kilograms.



Top rice producer Niigata is paying 30,000 yen for the popular Koshihikari variety, a 76-percent increase from the same time last year. The prefecture is raising the prepayment for the rice grown in its Uonuma region by 66 percent to 32,500 yen.



In 16 prefectures, including Hokkaido, Yamagata and Tochigi, prepayments are in the upper 20,000-yen range. Two prefectures are paying in the lower 20,000-yen range.



Many of the JA Group's cooperatives that were surveyed have expressed concern over the rising prices of fertilizers and farming equipment, as well as the extreme heat, which are expected to affect the quality and yield of the staple grain. They said they are raising their advance payments to farmers to avoid being outbid by other buyers.



Logistics costs as well as wholesalers' and retailers' profits are added to the price before the rice reaches consumers.



An analyst predicts that the retail price for autumn rice harvests could top 4,500 yen, or around 30 dollars, per 5 kilograms.
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Quiz 1:
The payment offered by Japan Agricultural Cooperatives Group for a 60 kg of rice in Niigata prefecture is:
A. Less than 20,000 yen
B. Between 20,000 and 30,000 yen
C. More than 30,000 yen
D. Unchanged from the previous year

Quiz 2:
The payment for the popular Koshihikari variety of rice in Niigata prefecture offered by Japan Agricultural Cooperatives Group has increased by:
A. Less than 50% compared to last year
B. Between 50% and 100% compared to last year
C. More than 100% compared to last year
D. Decreased compared to last year

Quiz 3:
Which of the following prefectures has the lowest prepayment offered by Japan Agricultural Cooperatives Group for a 60 kg of rice?
A. Hokkaido
B. Yamagata
C. Tochigi
D. The payment is the same across all prefectures