970730-Guidelines of Agricultural Policies in Taiwan

8/6/2019 970730-Guidelines of Agricultural Policies in Taiwan

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Guidelines of the New Agricultural Policies

Establish a Healthy, Efficient and Sustainable

Agriculture

for All the Citizens

Council of Agriculture, Executive Yuan

July 2008


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Table of Contents

1. Review of Taiwans Past Agricultural Developments

Policies

2. Current Economic Environment and the Irreversible

Trends

3. Basic Guidelines for the New Agricultural Policies

4. Six Pillars for Future Agricultural Development

Policies

5. Key Programs for Short, Medium and Long Term6. Conclusions


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Review of Taiwans Past Agricultural

Developments Policies

During the Japanese Occupation, the policy was Agriculturaldevelopment in Taiwan; Industry development in Japan.

After Taiwan was reclaimed from Japan, the policy was DevelopIndustries based on Agriculture, and Assisted AgricultureDevelopment by Industries.

With the contributions in food, labour, capital and markets fromfarming industry, the Taiwan economy took off and entered into atransition period in the 1960s.

Agriculture accounted for more than 30% of GDP in the 1950s but falonly to 1.45% in 2007. However, the contribution was 11% if therelated primary, secondary and tertiary industries are included. Thisshows that agriculture remains an important sector in the Taiwansoverall economy.


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Review of Taiwans Agricultural

Developments Policies (Cont)

The agriculture population was over 50% before the 1960s, but droppedto 5.4% in 2007.

Agriculture trade deficits began in the 1970s. The deficits totaled US$7

billion in 2007.

Income per capital in agriculture is roughly 68%-80% of the income percapital in non-agriculture sectors. The income from agricultural activities

of farmers dropped from 40% in the early 1970s to 20% in 2006.

Agriculture has shifted its role as the supplier of food in the past to the

current multi-function role in food security, rural village development and

ecosystem conservation.


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Statistics of Agriculture in Taiwan over Past Decade

Year 1997 2001 2002 2003 2004 2005 2006 200

Production Value NT$100

million 3,790 3,527 3,505 3,579 3,865 3,824 3,770 3,88

Farmland Area 10,000 hectares

Index,

86.5

(125.0)

84.9

(105.4)

84.7

(100.4)

84.4

(91.1)

83.6

(81.6)

83.3

(86.4)

83.0

(85.3)

82.

(83.

Working Population (1,000 People)

% of total working population

878

(9.6)

708

(7.5)

709

(7.5)

696

(7.3)

642

(6.6)

591

(5.9)

555

(5.5)

54

(5.4

Farm Labor Productivity

NT$10,000 per capital 43.2 50.0 49.4 51.4 60.2 64.5 67.9 71.

Farmers Income per Capital

NT$10,00020.7 22.4 21.7 22.2 23.0 23.2 24.6 NA

Average Income per Farm

Household

% compared to non-agriculture

sectors

90.7

(80.78)

88.1

(77.56)

86.1

(75.50)

87.4

(76.91)

89.3

(78.08)

87.3

(75.43)

94.1

(80.43)NA

Farm trade Deficits

US$100 million59.4 38.2 39.3 45.4 53.1 57.7 61.3 70.

Food Self-Supply Rate

(Price Index, %)79.4 81.9 81.5 78.0 75.7 74.2 74.4 NA


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Current Economic Environment andIrreversible Trends

Doha Round Negotiations, a new round negotiation of the WTO, began in 2001.The farm products market will be even more further liberalized.

Integration and competition of agriculture between Taiwan and Mainland China. Tokyo Protocol took effect in February 2005. Taiwan will take on its responsibility

in energy conservation and carbon reductions by reducing the emissions of

greenhouse gases.

High energy prices and tightened supply of commodities cause ongoing rises offood prices.

Increasing concerns over the safety of agricultural products in both Taiwan andoverseas members.


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Basic Guidelines for the NewAgricultural Policies

Establish a Healthy, Efficient

and Sustainable Agriculturefor All the Citizens


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Three Main Visions

1. Establishing Taiwan as a Poison-Free Agricultural Island

within 50 years;

2. Increasing per agricultural household income to over NT

million within 4 years;

3. Building 4,000 beautiful rural communities within 10 yea


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The Five Main Objectives of thePeoples Agriculture

For farmers profits, efficiency and welfare;

For consumers freshness, quality and healthy food

For the environment landscape, energy-saving, sustainability

For future generations clean environment, markets and high

technology

For the world responsibility, harmony and high green energy


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Six Pillars for National Agriculture

1. Establish a responsible agriculture industry to ensure sustainability;2. Develop a competitive, market-oriented agriculture industry with the

support of advanced technologies;

3. Improve farmers welfare and encourage retirement of old farmers;

4. Implement the third-stage farmland reform program and build newand beautiful rural communities;5. Enhance exports of agricultural products by promoting overseas trade

activities and cooperating with Mainland Chinas agriculturalindustries.

6. Improve the agricultural administration system and farmersassociations services


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Establish a responsible agricultureindustry to ensure sustainability

In order to curb global warming, large areas will be dedicated to tree planting. Atotal of 60,000 hectares on plains are planned for the planting in the next 8 years.

Direct subsidies is NT$120,000 for each hectare. Absorption of 2.2 million tons

of CO2 is expected each year, i.e. a reduction of 1% CO2 emission. (Taiwan is

the 14th largest emitter of CO2.)

To protect the health of consumers, efforts will be made to ensure all rice,vegetable, fish and livestock products are in compliance with CAS (Certified

Agricultural Standards) in 4 years. Expansion in outputs of organic agricultural

products is planned. Gradual promotion of the records system of selected

products production and marketing is promoted intending to make Taiwan a

poison-free Island in 50 years.


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Develop a competitive, market-oriented

agriculture industry with the support of

advanced technologies With the same dedications shown in agriculture science parks, Taiwanis to establish itself into a world-class flower island with promoting a

specialized production farming areas to upgrade the traditional flower

industry technology.

It is planned to set up specialized areas for premier rice production,Global Centre of Sub-Tropical Fruits and Asia Pacific Centre for

Seedling, Fishery and Livestock Breeding.

High value agricultural products are to be developed to sell to the

international markets.


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Improve farmers welfare and

encourage retirement of old farmers The guaranteed price for rice should be increased. Or,

direct income subsidies should be granted to improve

incomes of rice farmers.

A retirement mechanism should be established for old

farmers. The allowance for old farmers will be continued.

Laws should be amended to protect the farmers insurance

right.


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Implement the third-stage farmland

reform program and build new and

beautiful rural communities To encourage old farmers to retire early and to implement

Small Land-owners & Big Land-renters Program.

To implement Farming Village Rebirth Program withNT$150 billion Farming Village Rebirth Fund to take care

of 4,000 rural villages and 600,000 farm households.


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Enhance exports of agricultural products by promoting trad

activities overseas and promoting Integration and cooperatinagricultural industries with Mainland China

To develop international channels for agricultural products fromTaiwan by establishing long-term marketing networks; to establish

strategic alliances with international corporations and multinationals

to expand the international markets;

To start negotiations for the fishery industries cooperation withMainland China; to deploy a mechanism for intellectual properties

and trademarks between Taiwan and mainland China; to trade and

cooperate with the agricultural industry with China to seek mutua

benefits, e.g. imports of corns and animal feeds from Mainland China

and exports of fruits and pork from Taiwan to Mainland China.

Improve the agricultural


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Improve the agricultural

administration system and farmers

associations services To strengthen the administrative system for the agricultural

development by setting up the Ministry of Agriculture so that it can

perform the function of integrating agriculture, forestry, fishery and

livestock industries sectors together;

To unite fishermens and farmers associations of all levels toconstruct a nationwide marketing network for agricultural productsand to further develop this network into an international trade

company;

To assist Taiwan Joint Irrigation Association to fully utilize theresources to develop the industries with leisure agriculture, tourismand water usage so that it can create new financial resources for the

association.


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Key Programs for Short, Medium andLong Term

Short TermUntil the End of 2008

Medium TermUntil the End of 2009

Long TermFrom 2009 to 2012


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Short Term (Until the End of 2008)1.Inspections on agricultural produces will be improved to protect the health of consumers. CAS

(Certified Agricultural Standard), once suspended, will be resumed. By the end of 2008, it is

targeted to have organized 1,100 classes for CAS production and marketing. The certificate

systems for CAS organic produces, good produces and production and marketing records of

produces will be implemented so as to construct a robust production and marketing system for

healthy and safe agricultural products.

2. To promote and implement a smart and reasonable use of fertilizers by establishing 100 locations

to demonstrate the concept. The goal is to reduce chemical fertilizers by 5% by the end of 2008.

3. To adjust the set-aside policies by stopping the support in the production of biomass crops; to

encourage the growing of corns and animal feeds; to activate the use of idle lands so as tomaintain the food security of Taiwan.

4. To establish a retirement system for old farmers, the Peasant Health Insurance Act should be

amended so that old farmers can lend out their lands for retirement but get to retain their farmer

insurance. This will protect the farmers insurance rights for retired old farmers (Led by the

Ministry of the Interior/Assisted by The Council of Agriculture

5. To expand the scale of farms so as to enhance their production efficiency. Small Land-owners &Big Land-renters Project will run a trial program in 10 chosen locations.


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Short Term (Until the End of 2008)(Cond)6. To stabilize the production and marketing of the livestock products, an industry-based adjustment

system will be established. Some articles of the Animal Husbandry Act will be modified in orderto promote the management of the production quantity and the offering of development funds to

the industry.7. To develop multi-function fishing harbors in a systematic approach and conduct dredging

engineering in 36 fishing harbors to ensure the operational safety of fishermen.

8. To draft the Regulations Governing Rebirth of Farming Villages and to conduct a trial rebirthprogram in 7 farming and fishery communities and develop human resources in 210 communitie

9. To implement forestation programs on the plains with an initial phase of 600 hectares; to complete

the planning of one large-scale forest recreation park on the plains so as to serve as a vehicle forbetter education in nature and environment.

10. The Organization Guidelines of the Irrigation Association should be amended so as to fully utilizthe resources of irrigation associations to develop the industries related to water resourcesutilization.


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Medium Term (Until the End of 2009)1. To take care of all the consumers and farmers, it is intended to promote the CAS system, organic

agriculture, and quality produces through a variety of methods. The system to record theproduction and distribution of agricultural products will be established in order to build a

comprehensive certification, production and distribution system for healthy and safe farm product2. To adjust the set-aside policies into one phase for all idle lands within a year; to expand the scope o

incentives for the production of corns, pasture and forage corns.

3. To establish a retirement system for old farmers with Small Land-owners & Big Land-rentersProject; to promote the utilization of old farmers experience and assist them to pass down theirpractics; to assist business management of Big Land-renters.

4. To enhance the R&D of new varieties and the protection of new variety rights; to establish aproduction and certification system for quality seedling and animal breeding, i.e. Asia PacificCentre for Seedling, Fishery and Animal breeding.

5. To establish dedicated regions for flower growing; to promote the high-quality and high-efficiencyproduction system; to set up a security management system for fruits production; to select thefruits for which Taiwan has technical knowhow and variety advantages; to expand export marketsto make Taiwan Global Centre of Sub-Tropical Fruits

6. To establish strategic alliances with large corporations that have international marketing capacity; tbuild up a stable marketing channel for the exports of the Taiwans agricultural products.


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Medium Term (Until the End of 2009)(cond)7. To grasp the business opportunities with the arrival of tourists from Mainland China by

establishing showcase shopping centers of the best of agricultural products of mainland Taiwanand promoting a mechanism for order taking in Taiwan and pick up the delivery in Mainland

China.8. To extend the scope of businesses for credit development of farmers and fishermens association

so as to increase their incomes; to relax the restrictions in capital utilization so as to providefinancing to farmers and fishermen in production and marketing.

9. To promote Farming Village Rebirth Program by implementing it to revamp 90 farming andfishery villages/communities and develop human resources in 170 communities, in order toestablish new and beautiful farming and fishery rural villages.

10. To encourage the reclaims along the coast and to revitalize the functions of fishery harbors byinstalling facilities required for leisure and sightseeing so as to enable these harbors to servemultiple functions.

11. To implement the policies to reduce energy consumption and carbon emissions, to expand treeplanting, to reduce the number of fishing boats, to encourage a reasonable use of fertilizers, topromote the re-use of wastes.

12. To drive the projects of tree planting with 4,250 hectares of forest developing on the plains andmanage 47,500 hectares of forest lands. To organize an international bidding for the plan of alarge forest recreation parks on the plains choose the appropriate location and provide theresources needed.


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Long Term (2009-2012)1. To promote the CAS certificate system; to encourage the organic products production.

2. To encourage old farmers to retire early and to implement Small Land-owners & Big Land-renteProgram.

3. To explore the possibility of direct subsidy instead of the current purchase system with guaranteedprices for rice.

4. To promote Agricultural & Biological Technology Development Projects

5. To improve the irrigation systems for key production areas to important horticulture plantsproduction, in order to reduce the losses due to drought and floods.

6. To establish a world-class Flower Island and Subtropical Fruits Center.

7. To build up dedicated areas for larvae breeding for both edible fish and ornamental fish.8. To participate international fishery organizations in order to assume Taiwans responsibility as amajor deep water fishery country.

9. To develop export markets for agricultural products by establishing marketing channels and brandimages.


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Long Term (2009-2012)(cond)10. To unite fishermens and farmers associations of all levels to establish a nationwide marketing

network for agricultural products and to further develop this network into an international tradecompany;

11.To strengthen eradication measures to free Taiwan from Foot-Mouth Disease.

12.To implement a differentiation management system for credit department of farmers andfishermens associations in order to better their asset quality; to integrate channel resources of althe farmers and fishermens associations throughout Taiwan in order to expand the business baof their credit department.

13. Implement Farming Village Rebirth Program to build new and beautiful farming villages;

14. To promote reclaims along the coast in order to establish a high-quality environment for fishing.15.To reduce the number of fishing boats and conserve the marine resources in order to maintain the

ecosystem of Taiwans marine environment.

16.To promote energy-saving and carbon reductions so as to improve the effectiveness of productionand marketing of agriculture.

17.To grow more forests so that they can absorb more carbon, preserve water resources and proect thenvironment.

18.To promote a holistic approach in mountain preservation and disaster prevention in order to ensurthe security of the national lands.


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ConclusionsTake Root Now;

Care for the Future;

Make efforts over all the World;Lead the Taiwan Agricultural Industry

into a New Era.

970730-Guidelines of Agricultural Policies in Taiwan

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