Premier Mao Chi-kuo today stated that innovative agriculture must not be confined to resolving the problems of the industry alone; it must also aim to transform traditional agriculture so that young people will get involved in the business. Moreover, solutions must be found for the aging of the farming population, and elderly farmers must be taken care of.
The premier made these remarks at today's Cabinet meeting after a briefing by the Council of Agriculture (COA) on its policy to employ innovative agriculture to chart Taiwan's agricultural development.
Mao enjoined the COA and related agencies to work together to enhance agricultural competitiveness via innovative means. He also expects central and local administrations to thoroughly implement innovative agriculture. In doing so, agriculture will not only help supply food for all citizens; it will also open up the international market for exports.
Traditional agriculture is often impacted by trade liberalization, the premier pointed out. Under the leadership of Minister Chen Bao-ji, the COA is changing traditional means of agriculture by activating fallow lands; implementing the Small Landlords, Big Tenant-farmers policy; and incentivizing farmers to turn to high-value cash crops to raise agricultural competitiveness.
To develop innovative agriculture, emphasis has been placed on incorporating agriculture with local industries. Another focus is adoption of online ordering systems and direct sales to replace the wholesale marketing model that featured multiple layers of exploitation.
Mao emphasized that local agricultural products are better received by the citizenry than those imported from abroad. For example, Taiwanese are far more willing to buy domestically produced rice than imported rice. Hence, domestically produced rice must not be mixed with lower-grade brands; instead, it must carve out a market segment through high quality and price differentiation. Letting the public pay for higher quality will be more effective than subsidizing farmers, Mao said.
The ultimate goal of innovative agriculture is for the agricultural industry to become export-oriented, the premier remarked. For instance, even though Israel is short of water and farmland, its vegetables and fruits are exported to the European Union. Taiwan ought to reorient its agricultural policy promotion and implementation away from the old perspective of agriculture being a disadvantaged industry. Such a policy will help prepare the industry for the inevitable challenges of market opening and trade liberalization.
Agricultural innovation does not merely affect the industry itself, Mao said. When children of farmers return home to take up the family business, they often experience conflicts and a period of adjustment. This goes to show that these young farmers have many innovative ideas, the premier remarked. The ultimate indicator of regeneration of a farming village is when young people return and reorient its industries. He asked the COA to work with local governments to seek out new and innovative models.
Innovative agriculture encompasses innovation in technology, management and individuals alike through incorporating local produce with technological innovation to develop value-added agriculture, Mao said.
Technological innovation includes establishing the Agricultural Technology Research Institute and promoting the industrialization of relevant technology. From 2014 to 2017, an estimated NT$1 billion (US$32.8 million) will be invested in agricultural development. Moreover, some NT$180 million (US$5.9 million) and NT$100 million (US$3.3 million) will be allocated to technology transfers and technological services, respectively. The businesses receiving investment are expected to deliver some NT$4 billion (US$131 million) of annual production value when they are listed on the market, and to make inroads into tropical and subtropical markets.
Reforms to drive management and operational innovation include the promotion of the Small Landlords, Big Tenant-farmers program and designation of special agricultural areas. So far, 15 special areas covering a total of 3,925 hectares of farmland have been established through COA guidance. The council has also facilitated a resource-integration platform for value-added production, the COA pointed out.
To nurture innovative individuals, special programs are implemented to foster young farmers who put learned knowledge into practice. The COA is also using information and communications technology to assist young farmers with creative convergence, matchmaking of business partners, raising capital, and nurturing entrepreneurial abilities. This is intended to raise agriculture's competitiveness and turn it into an emerging industry that attracts young people.