The study aims to explore the individual and group agreement of the direct payment of less-favored areas in Japan. This study was conducted by literature review, specialist interview and field visiting. The results of this study were as follows. First, direct payment policy in Japan was consisted of three components which were to maintaining multiple functions, to reorient agriculture sector, and to revitalizing the community activities. Second, the purposes of direct payments with conversion program is to reorient agriculture and revitalize the community activities which were changed from sustaining existing agriculture. Third, the conditions of group agreement is to make a agreement that a group of farmers should make a five-year agreement stipulating activities necessary to prevent the abandonment of farmland and to be more than one hector, and good agricultural practice or other activities favorable or friendly to environment should be implemented. As individual and group agreement, the land area of direct payment was 662,000 ha in less favored areas. In conclusion after direct payment in less favored areas, the abandonment of farmland was mitigated, and the agricultural production activities and community activities had become more vigorous through the discussion for planning their own land in the village.