1. The International Agricultural Situation

　　The area of land used for agriculture has shrunk, owing to factors like climate change, economic and trade liberalization, and urbanization. There is no country or major international organization that does not pay attention to maintaining food security, and try to ensure the sustainability and diversified development of agriculture, in the hopes of reducing the number of rural poor and meeting the nutritional needs of citizens.

　　The 11th Ministerial Conference of the World Trade Organization (WTO) was held in December of 2016 in the capital of Argentina, Buenos Aires, but the results of the meeting were not as good as had been anticipated. Therefore all countries, in order to maintain trade energy, have felt the need to pro-actively promote bilateral and regional economic and trade integration.

　　US President Donald Trump announced the withdrawal of the US from the Trans-Pacific Partnership (TPP) in January of 2017, though the remaining 11 countries, with Japan in the lead, reached a new consensus in November of 2017, renaming the agreement the “Comprehensive and Progressive Agreement for Trans-Pacific Partnership.” Meanwhile, the negotiations of the Transatlantic Trade and Investment Partnership, the North American Free Trade Agreement, and the US-Korea Free Trade Agreement are ongoing
or being revived.

2. The Domestic Agricultural Situation

　　The preliminary estimate of total agricultural production value in Taiwan in 2017 was NT$528 billion, an increase of 2.41% over 2016. Within this figure, the ratio of farming, forestry, fisheries, and animal husbandry were, respectively, 51.16%, 0.05%, 16.96%, and 31.84%. The preliminary estimate for the agricultural production index was 93.51 (using 2011 as the base year). Due to the stable climate compared to 2016, total production volume increased by 2.39%. The most obvious increase was in farm crops, for which the rate of growth reached 4.98%. On the other hand, production volume in fisheries and animal husbandry fell, respectively, by 2.36% and 5.10%.

　　In terms of agriproduct prices, in 2017 the wholesale price index for farm, forestry, fisheries, and animal husbandry products fell by 4.30% compared to 2016. Within this reduction, the price of farm products fell by 8.03%, forestry products rose by 3.22%, fisheries products rose by 1.82%, and animal husbandry products fell by 1.92%.

　　In terms of agriproduct trade, in 2017, the value of imported agriproducts was US$15.19 billion, an increase of 6.8% compared to the previous year. Main imported agriproducts included corn, wheat and other grains and products manufactured from these, soybeans and other oilseeds and powders, and frozen meat. The value of exported agriproducts was US$4.981 billion, an increase of 6.6% compared to the previous year. The main exported agriproducts included Phalaenopsis orchids, edamame (aka vegetable soybean or green soybean), and fish and products manufactured from fish.

3. Agricultural Policy Goals for 2017

• Bring into play the multifunctional values of agriculture, including its roles in ensuring food security, maintaining the environment, supporting rural development, and enhancing the health of citizens; through the construction of agricultural models, build a food safety system and upgrade the marketing capabilities of agriculture; create a new structure of Agriculture of the Whole People on the basis of innovation, employment, and equitable distribution.
   
• Adjust the cultivation system, revitalize fallow land, and steadily promote “direct payments on farmland,” to encourage the planting of import-substitution crops on farmland and expand the use of eco-friendly production methods; construct relief and insurance systems for natural disasters that affect agriculture, effectively cope with the impact of climate change, and upgrade capabilities in the area of natural-disaster risk management.
   
• Improve the environment for the livestock industry, advance sanitation management for the slaughtering of animals, strengthen the effectiveness of inspection and quarantine, and reduce the transmission of animal diseases; increase the livability rate of hogs; strengthen the reuse of livestock waste, and promote green energy and methane gas electricity generation from livestock buildings.
   
• Actively participate in international fisheries organizations, strengthen management of Taiwan’s distant-water fisheries to conform to international norms, implement management of fisheries resources, and conserve fisheries resources in coastal waters; optimize the operational environment, and maintain the rights of workers in the fisheries industry; improve public facilities for the fisheries industry, promote sustainable aquaculture operations, and provide safe and high-quality fisheries products. 
   
• Utilize forward-looking technology and techniques, develop “smart technology” agricultural production and digital services, upgrade management effectiveness, and broaden value-added applications for rural industries; combine facilities agriculture and the green energy economy, and promote a win-win situation for agriculture and power generation. 
   
• Create incentives for the use of local ingredients in nutritional lunches for middle and elementary schools, promote food and agriculture education, and encourage “local production, local consumption”; establish regional agricultural processing centers, and upgrade value-added for agriproducts; encourage young farmers to join the ranks of agricultural production and marketing groups; optimize the tourist-service capabilities of recreational farms, develop the international and domestic tourism markets, and inject life into local economies. 
   
• Promote transformation of the system of farmers’ and fishermen’s organizations, and upgrade the operational capabilities of irrigation associations; strengthen oversight of credit departments of farmers’ and fishermen’s associations and the mechanism for agricultural credit guarantees, promote policy-oriented special agricultural loans, utilize the common platform for financial information for agricultural and fisheries industries, and upgrade operational performance and the effectiveness of services; improve welfare measures for farmers, and promote the well-being of farmers.
   
• Strengthen the food security system, promote the production of non-genetically-modified mixed staple crops; strengthen prevention and quarantine of animal and plant diseases, strengthen the safe use and management of veterinary drugs, construct safe production of agriproducts from the source, upgrade the quality and inspection frequency of agricultural products, and promote labeling systems which consumers can trust.
   
• Participate actively in international economic and trade consultations and negotiations, break through trade barriers and strengthen international marketing of agriproducts, and consolidate existing markets while expanding into new ones; build diversified sales channels for agriproducts, bolster small farmers while helping the development of agricultural enterprises, and increase farmers’ incomes. 
   
• Refine and improve Rural Regeneration, and combine it with the development of unique local industries to raise the quality of life in rural areas; attract young farmers to dedicate themselves to agriculture, and upgrade the quality and quantity of agricultural manpower; strengthen construction of rural irrigation canals, and raise the efficiency of the use of water in agriculture; in coordination with the National Land Use Plan, construct a system for categorization and grading of farmland, and promote economies of scale and concentrated cultivation of the most suitable crops for each area.
   
• Strengthen animal protection, ensure owners’ responsibility and source management, and enhance animal welfare.