In order to encourage rice farmers to produce high-quality rice, from the second crop season of 2016 through the second crop season of 2017 we initiated, on a trial basis, a two-track system of “the policy of guaranteed prices purchasing” and “the policy of direct payments on farmland.” In the districts where this approach was tried, farmers could freely choose between selling their rice to the government or receiving direct payments. Farmers who chose direct payments could, at harvest time, go back to the policy of guaranteed prices purchasing.

　　The amounts of direct payments in the first and second crop seasons of 2017 were, respectively, NT$13,500 per hectare and NT$10,000 per hectare. In addition, for farmers participating in Specialized Rice Production and Marketing Zones, the additional incentive of NT$1,500 per hectare for contract production could be added. The results of trial implementation in 2017 were as follows:

1. In the first crop season: The trial program was extended to 20 areas, and the total number of people signing up for either direct payments or guaranteed prices purchasing was 28,498, covering an area of 17,447 hectares. Of these, 15,115 signed up for direct payments, covering 11,027 hectares. A total of 9,549 people actually ended up collecting the direct payments, covering an area of 6,802 hectares (accounting for 39% of the total growing area for which people signed up). 
2. In the second crop season: The trial program was extended to 50 areas, and the total number of people signing up for either direct payments or guaranteed prices purchasing was 34,047, covering an area of 23,028 hectares. Of these, 19,670 signed up for direct payments, covering 15,325 hectares. A total of 14,335 people actually ended up collecting the direct payments, covering an area of 11,727 hectares (accounting for 51% of the total growing area for which people signed up).

　　Looking at other results for the first crop season of 2017, in the trial implementation areas there were a total of 1,352 hectares of land in Specialized Rice Production and Marketing Zones, of which 737 hectares had newly joined such Zones. This marked an increase of 120% over the period preceding trial implementation, showing that the new system can definitely attract farmers into joining Specialized Rice Production and Marketing Zones. Besides assisting contracting operators to expand land area devoted to contract production and to raise the quality of domestically produced rice on the market, it is also possible, through contract purchasing, to ensure the incomes of rice farmers.

　　In order to adjust the structure of the rice industry and raise the supply of domestically produced mixed staple crops, starting in 2018 the COA will begin promoting the “Plan for Direct Payments on Farmland.” Through incentives we will encourage planting of competitive contract products such as import-substitution, major export-oriented, and main-point development crops. We will also continue to implement a two-track system of “the policy of guaranteed prices purchasing” and “the policy of direct payments on farmland,” and will combine this with measures that include subsidies for organic and eco-friendly farming, to guide farmers to plant the right crop for the appropriate location and promote the sustainable development of agriculture.