The small landlord, big tenant farmer program

Establishing a farmers’ retirement program

　Through the small landlord, big tenant farmer program, which allows farmers to lease land to long-term professional operators, the COA hopes to encourage structural changes in agricultural labor to improve the competitiveness of the industry and revitalize farmland. In addition, we have also established a farmers’ retirement program to ensure farmer benefits and improve their quality of life.

　The COA negotiated revisions to the Farmers’ Health Insurance Act with the Ministry of the Interior, ensuring retired farmers receive the benefits they deserve. The revision, announced on November 26, 2008, aims to encourage older farmers to release their land upon retirement and do non-agricultural work in their spare time, while still ensuring their continued eligibility for farmers’ insurance and relevant benefits. Retired farmers will continue to receive monthly NT$6,000 stipends.

　The COA designed a senior farmer retirement system based on the principles of economic and environmental safety, physical and mental health, and community participation to improve the quality of life for elderly farmers. The plan coordinates with the small landlord, big tenant farmer long-term lease program and will include senior farmer financial planning consulting services. To achieve the goals of healthy aging, revitalization of human resources, and preservation of local culture, the COA planned and implemented healthy lifestyle training, while encouraging retired farmers to take part in local cultural and community development organizations.

Assisting big tenant farmers to industrialize operations

　In order to promote the small landlord, big tenant farmer policy and encourage industrialization of agricultural operations, in June 2008, the COA organized an inter-agency task force and a supervising group, which draw up relevant policies and coordination measures. In September of last year, they chose 10 trial areas to implement relevant policies carried out under the guidance of an agricultural work group. By the end of December 2008, the local governments in which the trail areas are located had held upwards of 10 meetings to familiarize farmers with the policy and assist big tenant farmers in renting land. They also held 20 consultation meetings to further assist tenant farmers in renting land and implementing industrialized operations management. Land rented under this trial program measures 140 hectares. The results of this trial will be reviewed for expanding implementation of the plan that will proceed in 2009. In order to assist tenant farmers in securing necessary funds, the COA published an outline of loan essentials on December 30, 2008 detailing the preferential terms on rental and industrialized operation loans available to big tenant farmers.

Enhancing functions of the computerized farmland brokerage system

　In order to promote the distribution and revitalization of farmland, the COA promoted and enhanced farmland brokering services under Article 22-1 of the Agricultural Development Act. A total of 273 farmers’ and 25 fishermen’s associations, representing 87.4% of all such associations, established farmland brokering service centers. Through the end of 2008, the farmland brokering website posted a total of 11,425 farmland listings, which broke down in to 1,112 leases, 3,684 sales, 6,480 court auctions, and 149 plots for sale or rent. There were a total of 1,366 completed transactions (338 successful leases, 139 sales, and 889 court auctions) which involved 422 hectares of farmland, increasing total loans by NT$315.82 million. Using farmland brokering system to implement the small landlord, big tenant farmer policy will better ensure the security of farmland leases. Over the next year, the COA will continue use these tools to enhance farmland brokering services. In addition, a special zone on the website will be created for the small landlord, big tenant farmer zones and set up a regulatory mechanism to ensure the security of leases.

Establishing a farmland grading and classification mechanism

　To ensure that agricultural operations are carried out in the most suitable areas, the COA established a mechanism for farmland grading and classification. In 2008, Taoyuan, Taichung, Chiayi, and Kaohsiung Counties received assistance in performing farmland resource and space planning. By providing such assistance, the COA hopes to adjust agricultural land usage to best suit the needs of each area.

　To deal with farmland at the edges of urban areas or other land unsuitable for farming, the COA requested the Ministry of the Interior and local governments review the regional planning and take the result of the space planning into consideration. These will hasten necessary adjustments to land classification, thereby increasing land-use efficiency. In addition, the COA is now in the process of reviewing relevant laws and feedback mechanisms to reasonably and equitably adjust land usage to concentrate resources in superior agricultural production zones. 

Encouraging Planting on Fallow Land

　In response to recent spikes in international grain prices, the COA has revised fallow land measures to better utilize farmland. Farmers were encouraged to put into production any fields that had been left fallow for two seasons or more to improve grain self-sufficiency, thus ensuring price stability and a sufficient grain supply. Relevant measures are detailed below:

Increasing government procurement prices as an incentive for rice planting

　Beginning with 2008’s first crop of paddy, the price at which the government purchases public paddy was increased by NT$2 to NT$23 per kilogram. The purchase under guidance price was NT$20 per kilo, while surplus grain fetched NT$18.6 per kilo to encourage farmers to grow grain on previously fallow land.

Encouraging feed corn planting

　As the price of feed corn continued to increase around the world, the COA encouraged farmers to plant crops by incentivizing contract farming of feed corn in the 2008 Paddy and Upland Field Adjustment Program. With more farmers growing feed corn, Taiwan can become more self-sufficient and increase the land utilization rate. In 2008, land planted with feed corn under the contract farming scheme reached 3,444 hectares.

Planting ornamental crops

　Coordinating with local governments to promote agricultural development and recreational agriculture, the COA encouraged farmers to plant ornamental crops on fallow land to beautify rural villages and expand the ecological and recreational benefits of the land. In 2008, 4,960 additional hectares of land were planted with ornamental crops.

Ending promotion of biofuel crops

　With the liberalization of biofuel imports under Taiwan’s national energy policy and in view of the fact that biofuel crops are relatively expensive to grow in Taiwan, the COA ceased encouraging farmers to grow biofuel crops during the second growing season of 2008. This step was also aimed to calm misgivings that biofuel crops would compete for lands originally set aside for food crops, thus ensuring the security and price stability of domestic grains.

Fallow land policy revisions

　In order to encourage planting on fallow land, the COA revised relevant policies to increase incentives for crop rotation, planting of marketable crops, and forestation. These new incentives will go into effect in 2009. In addition, new measures were penned to encourage experienced farmers to lease fallow land for paddy rice and forage crop planting to increase production and expand operations, thereby increasing operational efficiency.