Rice Direct Payment Expands to Cover 18 Townships in 1st Crop of 2017

In encouragement of farmers to produce paddy crops of superior quality and achieve competitiveness for Taiwanese rice, in the 2nd crop of 2016, Council of Agriculture, Executive Yuan implemented a dual-track program for rice support that incorporated direct payment and price guarantee purchase in 6 townships (cities, or districts). From the 1st crop of 2017, not only its coverage will expand to 18 townships (cities, or districts), but the payment rate will also increase reaching up to NTD 15,000/hectare. It is anticipated that this move would lead rice farmers to produce with an aim of enhancing quality to supply the general market instead of seeking government procurement.

Government to Enlarge Participation in Contractual Production Clusters

To further promote the cultivation of superior paddy that has genuine market appeals, Agriculture and Food Agency raises the base payment rate for the 1st crop of 2017 to NTD 13,500/hectare. In addition to the spread between the government procurement rate and the general market rate, the benefits of paddy production to its adjacent environment have also been taken into account when determining the rate. Furthermore, the farmers who participate in Rice Production Clusters will receive an additional NTD 1,500/hectare in direct payment as the contractual farming bonus, amounting to a total of NTD 15,000/hectare.

Expanded Pilot Run in 18 Selected Townships in the 1st Crop of 2017

The AFA states that, beside the six townships where the pilot run of direct payment was enacted in the 2nd Crop of 2016, namely, Yangmei, Hsiupu, Longjing, Fuxing, Puzih, and Liouying, 12 additional townships (cities, districts), Bade, Cyonglin, Tongluo, Wufeng, Tsaotun, Chutang, Siluo, Dalin, Xinying, Daliao, Shinyuang, and Dongshan, will be added into the mix, resulting in a total of 18 townships where the direct payment works in parallel with the price guarantee procurement. Farmers whose farmlands are located within the above-listed pilot areas who have registered paddy production from 2013 through 2015 or who participate in Production Clusters are eligible for the direct payment application. It requires that the farmers visit their local township offices or farmers’ associations between Jan. 3, 2017 and Feb. 10, 2017 to submit their application. The documentation requirement is identical to the application for the public rice procurement.

Direct Payment: Attaining Income Flexibility while Staying Fully Secured

If farmers who practice non-contractual farming in the direct payment program face difficulty in marketing their rice on the market, they may still opt for the public procurement. The contractually bound farmers are equally secured in their income if not more so, as the total return through contract prices plus the direct payment would be higher than the payout from the government procurement.
The AFA emphasizes that, since the direct payment provides income flexibility without additional risks, farmers located in the selected areas should definitely consider taking advantages of this program. Please visit your local township offices or farmers’ associations between Jan. 3, 2017 and Feb. 10, 2017 to apply.

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Rice Direct Payment Expands to Cover 18 Townships in 1st Crop of 2017