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Chapter 4: Promoting farmland reform and expanding the scale of farming

(1)The small landlord, big tenant farmer program

This policy was officially launched on May 27, 2009. By the end of that year, a total of 2,580 hectares of land had been leased, already exceeding our goal of 2,500 hectares. The policy’s main measures are discussed below:

1. Establishing a farmers’ retirement program

Prior to implementation of the small landlord, big tenant farmer program, the COA ensured that elderly farmers would remain eligible for farmers’ insurance and relevant benefits even after renting out their farmland. Twenty farmers’ associations were chosen to provide financial planning consulting services to elderly farmers. A total of 12 model households were chosen to implement environmental improvement plans and the COA provided related training programs to 157 retired farmers and encouraged them to pass on their skills and experience to a new generation of farmers. Through the end of 2009, there were over 1,500 small landlords renting out their farmland as part of this program.

2. Assisting big tenant farmers to industrialize operations

The COA established beneficial interest terms for rental and operating cost loans, while providing incentives to those leasing fields that have been fallow since 2006 or 2007. The big tenant farmers were provided with financial assistance for basic property improvements and marketing equipment. We also provided operations management consulting and specialized training, while assisting those farmers seeking to pass safe produce certifications.

3. Enhancing the computerized farmland brokerage system

Through the end of 2009, a total of 322 farmers’ and fishermen’s associations (87.4% of such associations) established farmland brokering service centers. A total of 13,721 farmland listings have been posted on the farmland brokering website and the total completed transactions involved 648 hectares of land. The system has added new features, including an area dedicated to the small landlord, big tenant farmer program. The COA educated 430 people about the system during 24 training sessions.

(2) Establishing a farmland grading and classification mechanism

1. To ensure that agricultural operations are carried out in the most suitable areas, the COA established a mechanism for farmland grading and classification. In 2009, the COA continued to assist Yunlin and Pingtung Counties to implement county-level farmland resource and space planning, while 15 other counties have already begun this process. The COA also assisted Fuhsing and seven other townships in Taoyuan County to perform township-level planning. Through implementing these planning schemes, we hope to encourage the effective use and management of resources.

2. To deal with farmland at the edges of urban areas or other land unsuitable for farming, the COA requested the Ministry of the Interior and local governments to take the results of agricultural resource and space classification into consideration when drawing up comprehensive regional plans. By hastening necessary adjustments to classification, we can quickly increase land-use efficiency.

3. The COA also researched the management of land classification and grading, establishing a procedure to classify superior farmland. The results of this research were incorporated into how the COA manages the classification of farmland, enabling us to concentrate resources and guidance on those areas with superior production and marketing capabilities.

(3) Utilization of fallow land

1. Following Taiwan’s accession to the World Trade Organization (WTO), the COA began to implement the Paddy and Upland Field Adjustment Program. Under this program, we work to adjust the production of rice, coarse grain, and contract sugarcane for sale to the government at guaranteed prices, while also helping farmers to adopt crop rotations schemes or leave their land fallow. In 2009, the actual area planted with price-guaranteed rice and grain was 255,000 hectares and 2,965 hectares respectively, reflecting the phased-in production adjustments to such crops.

2. In order to maintain the ecology of farmland and protect farmer income, counseled farmers to plant crops with stable production and marketing demand, providing incentives of NT$24,000 per hectare per season. Incentives for planting green manure, ornamental crops, and reforestation amounted to NT$45,000 per hectare per season, while NT$34,000 was given for implementing environmental protection measures. Growers were given NT$35,000 per hectare per season for growing contract grass or corn silage. Also, in order to utilize fallow farmland, in coordination with the small landlord big tenant farmer program, the COA promoted incentive measures to encourage the leasing out of land continuously kept fallow since 2006 and 2007. In 2009, 260,413 hectares of land was rotated to fallow land, while farmers were paid NT$10.75 billion in incentives to perform crop rotations and keep land fallow.