The world tr~de model used for this study suggests that Japanese agricultural policies have depressed world rice prices substantially. The study also indicates that such policies have imposed considerable distortions in their domestic economy; costing consumers and taxpayers nearly $1.73 to provide a dollar of support to agricultural producers. The study concludes that while elimination of agricultural support could lower Japanese agricultural incomes considerably, such losses may not affect the living standards of most farmers because agriculture contributes less than 8 percent of total household incomes for nearly 70 percent of farmers.