An increasing demand for corn-based ethanol, brought about by rising out prices, has driven up the price of imported corn kernels and their feed products. To stabilize the supply of corn-based feed and its prices, the COA set up a program to promote domestic corn production in the fallowed rice paddies. Trial production was carried out in the second crop season of 2007. Starting 2008, feed corn will be planted under the paddy and upland field adjustment program. Farmers’ associations will assist in the implementation or contractual production and the sale of feed corn. The subsidy was set at NT$45,000 per hectare per crop.

The trial production involved 149.51 hectares in Yichu Township and 38.95 hectares in Liaojiao Township, both in Chiayi County. The total yield was over 900 tons. Apart from the payment of NT$45,000, the contracted farmers sold their corn at NT$10 per kg. Each hectare/crop yielded a total of NT$50,000, which was far better than the current guaranteed price for feed corn at NT$35,000 or the incentive reward for fallowing at NT$38,000.

This incentive program will improve self-sufficiency in feed corn, lower the production cost of the livestock industry, increase farm income, and enhance land utilization.