Agriculture is the foundation of national development, the daily lives of citizens, and ecological conservation. Agricultural development involves not just production and marketing, but also such aspects as food security, rural employment, social stability, sustainability of resources, and environmental conservation. Every country needs agriculture, and every country places importance on agriculture. Moving with the changing times, the role of agriculture has also been redefined, but its multiple values in the economy, in society, and in the environment are still irreplaceable. The year 2017 marked the launch of a new government, and it was also a year of abundant results for the agricultural sector. Compared to 2016, 2017 saw a more favorable climate, less natural disasters, and therefore a greater production volume. It was a bumper harvest year. Although early in 2017 Taiwan suffered a blow from an outbreak of highly pathogenic avian influenza, the government soon adopted multiple effective epidemic prevention measures which successfully halted the spread of the disease. In terms of the promotion of “New Agriculture,” over this past year, thanks to the wholehearted cooperation and efforts of all our colleagues at the Council of Agriculture (COA), whether it was in terms of giving shape to agricultural models, establishment of safety systems, or development of sales channels, in all these areas there were preliminary successes and quite a number of breakthrough developments. We also made structural and systemic adjustments. Of these, several of the most important are as follows:

Expanding “direct payments on farmland” and the Big Granary Project, stabilizing the supply of staple foods

　　To induce farmers to produce premium quality rice, in conformance with World Trade Organization (WTO) regulations, the COA transformed the “guaranteed price purchasing” and “fallow land subsidies” systems into “direct payments on farmland.” We matched this with the concept of “cumulative payments,” to promote measures such as incentives for certain crops or cultivation systems, or subsidies for eco-friendly cultivation. We launched a “two-track” system (with farmers given the choice between “direct payments on farmland” and “guaranteed price purchasing”) in the second crop season of 2016, expanded trial implementation to 20 townships in the first crop season of 2017, and expanded trial implementation to 50 townships in the second crop season of 2017. The proportion of farmland reported as receiving direct payments as a percentage of the total area farmed with rice in areas with the two-track system in place rose from 39% to 51%, indicating preliminary reduction of farmers’ dependence on the guaranteed price purchasing system. This has also been helpful to (a) adjusting the structure of the rice industry, (b) encouraging farmers to move towards producing import substitution, main-point development, and eco-friendly-cultivation crops, and (c) stabilizing the supply of staple food. 

　　Taiwan’s self-sufficiency rate for mixed staple crops (MSCs) such as wheat, feed corn, and soybeans is low, and we mainly rely on imports for these. The COA has promoted the Big Granary Project to increase production of MSCs. In 2017 we increased the land area cultivated with MSCs by 6,266 hectares; established eight post-harvest handling centers; guided collective production zones in 34 places; established 36 MSC contracting operators; mediated enterprises to purchase domestically produced MSCs and raw materials for oils, increasing farmers’ end-user sales channels; guided the development of domestically produced MSC processed goods, thereby increasing consumption choices for citizens; and rebuilt the MSC industrial chain. In these ways we raised the self-sufficiency rate for domestically produced MSCs.

Strengthening guidance of farmers and completing an inventory of farmland resources, building a favorable environment for practicing agriculture

　　The COA pro-actively trains young farmers, by encouraging high school students to engage in agriculture, offering publicly-funded courses to university students, promoting farm internships, selecting the “Top 100 Young Farmers,” and guiding local young farmers. In 2017 we provided training to nearly 3,400 young farmers, giving them specialized technology or techniques coupled with consultations and also marketing guidance, and also provided preferential treatment in capital loans and land acquisition, to advance their farming capabilities. Starting in 2018 the COA will pro-actively assist genuine tillers of the land to join the farmers’ insurance program and will make plans for Occupational Injury and Disease Insurance for farmers, so that farming will have even more protections.

　　To make up for the shortage of labor in agriculture, in 2017 the COA formed 37 custom farming teams, recruited 842 agricultural personnel, and provided service to farms a total of 4,145 farm-times, totaling 71,217 working days. In 2018 we will introduce mechanized cultivation teams with farm machinery and automated equipment. We anticipate that this will create much greater capabilities to make up for the shortage of labor than in 2017.

　　To ensure food security and gain a firm grasp of the situation with regard to the use of, and the area of, farmland, at the end of September of 2017 the COA completed and publicly announced the results of a national inventory of farmland and other agricultural resources. Through participation and oversight by citizens, we strengthened control mechanisms over farmland use in the nation. Following this, we will coordinate with the delineation of agricultural development zones in the National Land Use Planning Act, and guide the investment of greater resources into high-quality agricultural production areas, while accelerating manpower and structural adjustments.

The use of the “Four Labels and One QR Code” in school lunches, expanding organic and eco-friendly agriculture

　　In response to the great attention placed by parents on the quality of ingredients in school lunches, we set out plans for middle and primary schools to use local agriproducts meeting the “Four Labels and One QR Code” standard in school lunches. This was introduced on a trial basis in six cities and counties in March, 2017, and in September was expanded to 20 cities and counties. At present, agriproducts that meet the “Four Labels and One QR Code” standard account for 44% of ingredients in school lunches, benefiting 3,506 schools and 1.86 million schoolchildren. In this way consumption is driving greater production of safe agriproducts, and we can also expand food and agriculture education as well as promote approval of and support for domestic agriproducts among citizens.

　　In order to demonstrate the government’s determination to promote organic agriculture, in 2017 the COA completed drafting of the Organic Agriculture Promotion Act and sent it to the Legislative Yuan to be reviewed. We also increased subsidies for costs of certification as “organic” to 90%, began to undertake cultivation subsidies for organic and eco-friendly agriculture, and subsidized eco-friendly fertilizer materials, so that by the end of 2017 the area covered by organic and eco-friendly agriculture nationwide reached 8,098 hectares. Through promotion of organic and eco-friendly agriculture, it is estimated that we reduced the use of chemical pesticides by 103 metric tons and of chemical fertilizers by 10,770 metric tons.

Upgrading the competitiveness of the poultry and livestock industries, sending out notification that highly pathogenic avian influenza was at an end

　　Faced with competition from pork imported from abroad, the COA promoted measures including the use of traceability systems for fresh pork at traditional markets, sales of temperature-controlled fresh pork, and eradication of foot-and-mouth disease, in order to raise the competitiveness of the industry. In addition, we utilized livestock waste to reduce carbon emissions, by coordinating with the promotion of methane-gas electric power generation. In 2017, there were already 43 hog farms (with 373,000 head) generating electricity from methane gas, and it is estimated that carbon dioxide emissions were reduced by over 400,000 metric tons.

　　To prevent the spread of highly pathogenic avian influenza (HPAI), in February of 2017 the COA established a crisis response team and a disaster response center, and moreover initiated numerous epidemic prevention measures, successfully halting the H5N6 epidemic and effectively investigating and culling poultry farms that had been infected by the H5N2 and H5N8 sub-types. In July of 2017 and January of 2018, we notified the World Organisation for Animal Health (OIE) that the H5N6 and H5N8 epidemics, respectively, were at an end in Taiwan. Compared to China and Southeast Asian countries, where there were continual outbreaks of avian influenza subtypes, Taiwan had great success with epidemic prevention, though this required a great deal of hard work.

Promoting sustainable fishing with habitat protection, promoting the use of domestic wood

　　Fishery resources are steadily declining across the globe. In order to get the “Yellow Card” issued to Taiwan by the European Union rescinded as early as possible, the COA formulated and amended legal provisions related to our distant-water fisheries. In January of 2017, 15 implementing regulations and five notices entered into force. We also established a 24-hour Fisheries Monitoring Center to monitor and control our fishing vessels, implemented measures for cultivation and management of fisheries resources, promoted the work of banning gill-net fishing within three nautical miles of the coast, released fish fry, and established areas for aquaculture, in order to maintain the environment of marine habitats and develop sustainable use of resources. Also, in order to revitalize Taiwan’s forestry industry, through increasing market demand for domestically produced wood the COA drove production and supply of wood and boosted the economy in mountain communities. In November of 2017 we announced that we were launching traceability management for wood and bamboo as well as a labeling system for domestically produced materials, in order to promote woodland use of woodland areas.

Promoting “pro-active” agriculture, deploying into global markets

　　Taiwan’s trade and overseas investment in agriproducts are excessively concentrated in mainland China. In order to spread risk, the COA has been pro-actively promoting the agricultural aspects of the New Southbound Policy, developing markets in Southeast Asian and South Asian countries, and moving in the direction of “pro-active” agriculture. In 2017 the value of trade in agriproducts with New Southbound Policy partner countries was US$5.76 billion, an increase of 9.3% over 2016. In 2017, sales of fertilizer, pesticides, and agricultural equipment to New Southbound Policy partner countries increased by 33% compared to 2016, with growth being highest for Vietnam and Thailand.

　　Since taking charge of the administration of Taiwan agriculture in 2017, I have been deeply moved by the concerted efforts of all involved in agriculture. Many farmers have brought into play creativity and practical skills to greatly enhance agricultural competitiveness. Each time they encounter a problem, they can always once again rise up with vigor and make breakthroughs, demonstrating the innovativeness and resiliency of Taiwan agriculture. In the future, besides continuing to listen to what farmers need and responding to these needs, I will scrupulously follow the President’s three principles of “innovation, employment, and equitable distribution”; implement the New Agriculture policy; strengthen inventories of resources, intersectoral matching, and crossdisciplinary cooperation for agriculture; and hopefully use innovative
management methods to replace the past passive thinking of relying on subsidies with the new policy of agricultural restructuring.

　　In order to embody the expectations that all sectors in society have toward the reform of Taiwan agriculture, the COA plans to convene a national agriculture conference in the second half of 2018. Through a bottom-up method for convening the conference, we hope to form a consensus among citizens, and collectively plan the blueprint for development of this country’s agriculture. At that time the COA will invite everyone to participate and give advice.

　　Looking back over the past year and hoping for the best in years to come, I hope that through this Annual Report we can advance citizens’ understanding of agricultural administration, and I also hope that citizens will provide agricultural agencies with more encouragement, support, and advice, to urge them to constantly improve and take things to the next level, so that hand-in-hand we can collectively usher in a modern New Agriculture of well-being for all.
 

Lin, Tsung-Hsien        

Minister,                     
Council of Agriculture
March, 2018