The COA, aiming to raise the food self-sufficiency rate and maintain the production environment, launched a new program in 2013 entitled “Adjust the Cultivation System, Revitalize the Use of Farmland.” Farmers who previously left their land continuously fallow may now leave their land fallow for one growing season, and then receive a subsidy for the other growing season to encourage them to cultivate any of the following: (a) import substitution crops; (b) crops with export potential; (c) organic crops; (d) special local crops. Under this program, farmers can receive a subsidy of between NT$15,000 and NT$45,000 per hectare per growing season, depending upon the crops. (The subsidy schedule is detailed in the chart.) In this way, subsidies that had previously been given to farmers to encourage them leave land fallow will instead now subsidize alternative or contract crops (i.e. types (a) through (d) above), thereby revitalizing unused farmland. Farmers will also earn more real income under this scheme than they would by leaving their land fallow. Concrete measures promoted in 2013 are summarized here:

New incentives for cultivation of previously fallow farmland

1. Land can remain fallow for one crop season each year; subsidies will be provided to cultivate alternative or contract crops during the other crop season, in order to encourage the owners of fallow land to bring it back under cultivation or to rent it to someone who will.

2. The two years 2013-2014 are to be considered a transitional period. Where an application has been made to rent out fallow land but no one has yet rented this land, then the owner can receive a subsidy of NT$20,000 per hectare for the purposes of plowing the land in preparation for resumed cultivation by a future renter.

3. For land designated as “ecological conservation land” (such as protected terraced rice paddies) or land designated as especially difficult to cultivate, subsidies of NT$34,000 per hectare will be available each growing season for two seasons per year

4. Under this program there are also subsides of NT$45,000 per hectare for cultivation of “green fertilizer” and NT$34,000 per hectare for plowing these into the land.

Incentives for the cultivation of alternative or contract crops

1. The following table shows what alternative or contract crops are eligible for subsidies, as well as the subsidy amounts.

Unit: NT dollars, per hectare, per crop season

Note: Subsidies for organic crops are targeted at encouraging the development of the organic farming industry. Such subsidies are, however, limited to a three-year period from the date that the organic farm applies for certification as having met the prescribed criteria for the transitional period. The certification process for organic crops planted on fallow land brought back under cultivation is the same as that for the normal organic certification process, with farms receiving “transitional period” certification, full organic certification, and so on. Farmers use the certifications to apply for subsidies.

2. The following remarks apply only to “special local products” as determined and listed by local governments: (a) In theory, the central government provides a subsidy of NT$20,000 per hectare per growing season; remaining funds must come from the local government. However, because in 2013 local governments did not have adequate funds in their budgets, the central government paid the full subsidy (which was in fact NT$24,000). (b) If an imbalance between supply and demand occurs, the local government must bear responsibility for 30% of the costs of covering the imbalance.

Assistance measures for Big Tenant Farmers

1. The COA has expanded the scope of rental land. Originally it was defined as land that had been left continually fallow in 2006 or 2007, but there are cases where the base year can be extended to include 1994 through 2003.

2. In addition to the subsidies to be given for the planting of alternative or contract crops (based on the standards listed in the chart above), BTFs also receive an additional NT$10,000 per hectare as a rental subsidy.

3. A subsidy of NT$10,000 per hectare for land improvement was given to BTFs who rented land that was continually fallow in 2011. This was a one-time only subsidy.

4. The COA continues to make available to BTFs the following: (i) equipment and facilities subsidies, (ii) interest-free loans for renting land, (iii) loans for operating capital at the low interest rate of 1%, and (iv) special-case disaster-relief payments.

5. Guidance measures for rice cultivation by BTFs are as follows:

Incentive measures for landowners

To reward elderly farmers who retire from farming and rent their land to BTFs, such landowners, if they are 65 or over and have qualified for the “farmers’ health insurance” program for a minimum of five years, can receive a retirement bonus of NT$2,000 per hectare per month, up to three hectares, which is to say payments of a maximum of NT$72,000 per year.

Effects of the policy in 2013

1. In 2013, the area of land for which landowners applied to leave the land fallow for both growing seasons was 112,000 hectares, a drop of 88,000 hectares compared to 2011. The area of land for which landowners applied to cultivate alternative or contract was 125,000 hectares, an increase of 53,000 hectares compared to 2011. The policy has, overall, been very effective.

2. The various crops raised on fallow land brought back under cultivation increased the total value of agricultural production by NT$17.84 billion. This figure breaks down as follows: (a) The increase in value of new farm production was NT$12.48 billion. (b) The increase in value for support businesses such as seedling suppliers and plowing firms was NT$2.25 billion. (c) The increase in value for industries like raw materials, transportation, and materials for processing was NT$3.11 billion.