The Adjustment of Taiwan’s Rice Policy: An Economic Analysis
Date Issued
2007
Date
2007
Author(s)
Chen, Ya-Hui
DOI
zh-TW
Abstract
Suffering from slow structural adjustment, small farm size, and aging farmers, agricultural policy reform is indispensable. The purpose of this research is to set up various hypothetical schemes of direct payment policy and to examine their feasibilities in which from the farmers’ income and government financial burden are my primal interests.
Searching through the experiences of developed countries, direct payment program is either of income support or of ecological concern. The former includes unrestricted rice direct payment (case A), rice direct payment with restrictions on acreage, rice quality, subsidy cap and age (case B); the later consists of set aside payment with acreage restriction (case C), ecological and landscape payment (case D), and payment for environmentally friendly farming (case E).
My conclusion suggests that either type of direct payments can be the candidates to replace the rice price support program. Under the unrestricted case A, the average farmer’s income can be intact even if the current rice price drops up to 15 %. The government budget will be significantly relieved because only 18 % of the average farmer’s income comes from the direct payment compared to 42.09 % of that comes from the current rice price support program. When more restricted case B is introduced, the government’s contribution to the farmer’s income can be lessened to only 16 % in the most restricted case without scarifying the farmer’s income.
Instead, if the government adopts the environmentally friendly type of direct payment like case C, case D and case E in our hypothetical setting, the most optimistic estimation tells that the government can save up to 33.02% of its current NT$9.4 billion outlays on current set aside program.
Subjects
直接給付
與生產分離直接給付
稻米產業
經濟分析
Direct payment
Decoupled direct payment
Rice industry
Agricultural subsidy
Economic analysis
Agricultural policy reform
Type
thesis
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