Land improvement projects are implemented with government subsidies. Among the reasons for this are the externalities of the economic effects of such projects and the fact that these projects have the aspect of public goods. Moreover, land improvements have a feature of the non-exclusive goods, which makes these projects difficult to implement with market-based transactions alone. At the same time, Japanese people's demands for the functions provided by agriculture and rural communities are changing in the past few years. Regarding the effects of land improvements, multiple functions are also being sought. Furthermore, the aging of existing land improvement facilities, co-mingling of non-farming households in rural areas, and the diminishing ability of farming households to maintain and manage land improvement facilities due to sluggish regional agriculture are now considered new challenges. Thus, encouraging the participation of community residents, including members of non-farming households, has become important in the planning and implementation of projects. However, reaching a consensus among diverse stakeholders is not expected to be easy. This study attempts to reveal the formation of perception structure among farm households about land improvement projects. It also draws policy implications for an effective rural planning. JEL classification: Q15, H41, H54, D70