Minimum price purchase of paddy and direct payments have run in parallel nationwide since 2018

To encourage farmers to produce high-quality rice, the Agriculture and Food Agency has fully implemented the dual-track system of guaranteed-price rice purchase and direct payment starting this year. Farmers can freely choose to take part in either the guaranteed-price purchase or the direct payment. For those who apply for the direct payment, the payment amounts for the 1st and 2nd crop seasons are 13,500 and 10,000 yuan per hectare respectively.

Last year in the 50 pilot areas, half of the rice crops chose "direct payment"

Chuang Lao-ta, Deputy Director-General of the Agriculture and Food Agency, pointed out that according to the data, in the 50 townships and city districts currently under the pilot program, last year's 2nd crop season totaled 22,000 hectares, of which 15,000 hectares applied for the direct payment. After the rice harvest was completed, those who actually received the direct payment totaled 11,700 hectares, while the remaining more than 3,300 hectares switched to the guaranteed-price purchase.

The Agriculture and Food Agency stated that it has already piloted 3 crop seasons, and last year's 2nd crop season even reached 50 pilot areas. After reviewing the pilot program, it found that more than 60% of farmers were willing to participate, and in the pilot areas newly joining the rice production-and-marketing contractual farming group production zones, the area under contract with operating entities grew by 120%, which indeed helped improve rice quality. Therefore, this year the dual-track system is being promoted nationwide, and rolling reviews will continue in the future.

This year the nationwide dual-track system runs in parallel, improving rice quality rather than chasing volume

Chuang Lao-ta also said that since the dual-track system was piloted, the response has been very good, with no issues requiring correction, because the guaranteed-price purchase and direct payment run in parallel, and farmers can decide for themselves. Farmers producing high-quality rice are usually more interested. The purpose of the Agriculture and Food Agency is to hope that farmers produce high-quality rice and sell it to the market, rather than making it their goal to hand over the rice they grow as public grain. "Farmers need to know that the rice I grow is not meant to be handed over as public grain." At present, farmers under contract with channel operators all choose the direct payment.

Regarding the concern that farmers who choose the direct payment may worry that their rice will be hard to sell, Chuang Lao-ta responded that rice also has market segmentation. "Farmers need to build their own brands, develop good varieties and high quality, and make consumers enjoy eating their rice more, rather than planting casually and then handing it over as public grain." Moreover, if farmers improve rice quality and increase consumers' willingness to buy, it can also solve the dilemma of the people of Taiwan eating less and less rice year by year.

Chuang Lao-ta: With the public grain price as a support point, the market price will not fall

In addition, for farmers who apply for the rice crop direct payment, if the market price is not ideal, they can also choose to hand over public grain and not receive the payment. Chuang Lao-ta explained that the public grain purchase price is fixed. Once the market price falls below the public grain price, farmers can switch to handing over public grain without receiving the payment. "Farmers will actually do the math. If it is lower than the market price, they will all switch to handing over public grain, so farmers' rights and interests are not affected."

However, the direct payment for rice has many benefits. If all farmers sell their rice to the market, will it cause the market price to fall? Chuang Lao-ta responded, "Such a phenomenon will not occur. The public grain price is a support point." If the market price is in the 20-something range, the public grain price will be set at 23. "The price will be held up there, and it is impossible for it to fall to the teens. This is a support point."

Applications can be filed from now until February 2

Regarding the actual direct payment amounts, the Agriculture and Food Agency pointed out that if a farmer's rice-growing land meets the qualifications for selling public grain rice, and in any year from the 102nd to the 104th year of the Republic of China the farmer declared rice cultivation, had a case under the small landlord, large professional farmer policy lease program, or joined a group production zone and had a case of contractual purchase by an operating entity, they can all apply for the rice crop direct payment. The payment amounts for the 1st and 2nd crop seasons are 13,500 and 10,000 yuan per hectare respectively. In addition, in order to guide farmers to produce rice that meets market demand, farmers under contract with contractual farming group production zones can also receive an additional contractual farming incentive of 1,500 yuan per hectare.

The Agriculture and Food Agency emphasized that to make it convenient for farmers to participate, from now until February 2, farmers can go to the public office or farmers' association in the place of household registration and simultaneously declare the cultivation measures for both crop seasons of the year. The agency called on farmers to actively complete their applications, as applying for the rice crop direct payment has absolute guarantees. In addition, if farmers are under contract with a group production zone, they should proactively inform the public office or farmers' association at the time of application so that the subsequent contractual farming incentive payment can be issued.