Taiwan is facing new challenges arising from globalization, including the internationalization of e - commerce, environmentalism and “green” thinking, the rise of emerging economies, cross-disciplinary technological innovation and the need for improved resource management. Coping with these challenges, the agricultural sector must display creative thinking and construct new agricultural value chains.

　　The core values of the policies adopted by the Council of Agriculture (COA) are “healthfulness, efficiency, and sustainability.” These are complemented by the current main policy axis known as “G olden Decade: Agriculture of Healthfulness and Sustainability.” We are actively promoting industrialization of agricultural science and technology, developing the rural leisure industry, reforming the system of welfare allowances (pensions) for elderly farmers, strengthening management of feed oils and rice sold on the market, revitalizing fallow lands, and enhancing the multi-functional values of the agricultural sector. In 2014, the total value of agricultural production was NT$521 billion, an increase of 8.0% compared to 2013, while the value of agricultural exports was US$5.27 billion, and trade in agro-products with mainland China had a surplus of US$31.29 million. Major policy accomplishments in 2014 included the following:

Promoting industrialization of agro-technology, converting research results into commercial products

　　A main goal of the COA is to promote applications of innovative agricultural R&D and use these directly or convert them into commercial products. Toward this goal, on January 1 of 2014, the COA formally opened the Agricultural Technology Research Institute (ATRI), with its two core missions being“to develop agro-technology into an innovative industry” and “expedite collaboration between agribusiness and farmers to create a new form of national agriculture.” In 2014, 33 cases of intellectual property rights of the COA were recognized, and the proceeds from technology transfers exceeded NT$100 million, an increase of 20% over 2013.

Adjusting the welfare allowance (pension) system for elderly farmers, assuring the well-being of farmers

　　The system of giving a welfare allowance (also called “pension”) to elderly farmers, in place since 1995, faced two main problems. First, it only required individuals to have been participants in the farmers’ health insurance program for a mere six months in order to qualify for a pension after age 65, allowing many people who were not genuine career farmers to qualify. Second, it allowed people who had not lived in Taiwan for a long time to collect a pension. Therefore, on July 16, 2014, the COA announced amendments to the Provisional Act Governing the Welfare Allowance for Elderly Farmers to change the required participation in the farmers’ health insurance program from six months to 15 years to qualify for the pension. (Anyone who had already qualified under the old rules remained unaffected by the change.) It is estimated that this change will save NT$46 billion over 15 years, money which will be applied to tasks such as (a) assisting working farmers to construct facilities and get equipment for production and marketing of their products, (b) ensuring the production of safe agro-products, and (c) assisting young farmers in modern agricultural operations.

Strengthening regulation of rice and of oils for animal feed, increasing citizens’ confidence in the safety of food

　　To protect the rights and interests of consumers, the COA promulgated “Procedures for Sampling, Inspection and Announcement of Results for Rice for Human Consumption Sold on the Open Market, "to strengthen sampling and control of such rice. We also amended the Food Administration Act to raise fines for illegal mixing of different types of rice from the previous maximum of NT$200, 000 to NT$15 million, in order to deter unlawful behavior. In addition, in response to the incidents in which oils and fats not for human consumption were sold as being for human consumption, the COA has initiated a separate track for imports of oils and fats for use in animal feed and strengthened controls at the points of origin. We have also created a registration and record system for domestic factories, begun monitoring the supply chain of oils and fats, and amended the Feed Control Act to prevent unethical firms from circulating or using illegal products.

Promoting international agricultural cooperation, participating in international organizations, keeping pace with international developments

　　In 2014, for the first time ever, Taiwan signed agricultural cooperation documents with three different countries. These included the “Memorandum of Understanding on Agricultural Cooperation between the Council of Agriculture, Taiwan and the Ministry of Agriculture and Irrigation, the Republic of the Union of Myanmar”; the “Memorandum of Understanding on Cooperation in the Field of Agriculture between the Taipei Representative Office in Hungary and the Hungarian Trade Office in Taipei”; and the “France-Taiwan Agricultural Cooperation Convent ion. ” T hes e c ooper at ion agreements increase substantive relations and are helpful to developing new markets. Also, at the 3rd Ministerial Meeting on Food Security of the Asia-Pacific Economic Cooperation (APEC) forum, representatives of member economies approved Taiwan’s proposal for “Strengthening Public-Private Partnership to Reduce Food Losses in the Supply Chain,” and it was incorporated into the Beijing Declaration on APEC Food Security.

Coping with Porcine Epidemic Diarrhea, launching market adjustment mechanisms, upholding the interests of both farmers and consumers

　　The spread of Porcine Epidemic Diarrhea (PED) reached its peak early in 2014. Though it moderated by April, the epidemic caused the supply of hogs to fall by 757,000 head (8.7%) compared to 2013, resulting in shortages in the production of pork. The COA convened a special committee to stabilize pork prices by adjusting supply and demand: increasing the supply of substitutes, allowing imports on a case-by- case basis, and increasing and adjusting the days on which auction markets were closed. These measures ensured that there would be no worries for consumers about buying pork for daily use, while simultaneously protecting farmers’ incomes and profits.

Bringing fallow farmland back into production, cultivating import substitution crops, raising food self-sufficiency

　　The COA has continually been encouraging farmers to reactivate fallow land, especially for cultivating import substitution crops, crops with export potential, and unique local products. The total area of land left fallow for both growing seasons in 2014 was 100,000 hectares, a decline of 50% from the 200,000 hectares of 2011. Of this, farmland revitalization under contract to grow specific target crops was 125,000 hectares, an increase of 53,000 hectares, or 73%, over 2011. By promoting our policy of “adjusting the cropping system and revitalizing fallow land,” the COA has created overall effective production value of NT$18.4 billion in agriculture and peripheral industries. The former policy of paying subsidies for passively leaving land fallow has been transformed into proactive agricultural production.

Building a responsible fishing industry, reaching growth targets for grouper production ahead of schedule

　　Grouper aquaculture in Taiwan enjoys important competitive advantages, including control of reproductive and culturing technology and the proximity to major markets. In 2014, the value of production of grouper reached NT$8.45 billion. This means that our original goal of doubling the total value of production to NT$7.6 billion has been surpassed ahead of schedule. In addition, in order to strengthen the international competitiveness of Taiwan’s squid/saury fishing fleet (boats that fish for squid during one season and for Pacific saury in the alternate season), the COA has adopted a number of measures including a new policy regarding the renewal of the squid fishing fleet and simplifying procedures for bringing catch back to Taiwan and marketing it. In 2014, total catch volume surpassed 200,000 metric tons for the first time, once again reaching a higher level than Japan and allowing Taiwan to remain number one in the world.

Future challenges: Attracting young people into agriculture, innovating value chains, marketing Taiwan agro-products and agro-technology to the world

　　Taiwan faces the aging of its agricultural population and a decline in the agricultural labor force. The COA thus faces problems of (a) attracting young people to enter agricultural production, (b) ensuring the well-being of elderly farmers, and (c) creating an environment of high competitiveness and stable incomes to make agriculture an attractive profession, all the while ensuring a steady supply of safe and healthy agricultural products to consumers. These are major challenges. In the future, the COA will strengthen cooperation with local governments and relevant industries to jointly innovate and expand agricultural value chains in order to deal with various challenges. In addition, we will more proactively promote industrial policies of import substitution and export expansion. We will endeavor to broaden international cooperation and participation in international organizations, keep abreast of developments in the market for agricultural products at the regional and global level, and market Taiwan’s agro-technology and agro-products to the world.