Because most of the farmland in Taiwan falls under the jurisdiction of the Taiwan Provincial Government, FCR interviewed Dr. Yu Yu-hsien, then Commissioner of the Taiwan Provincial Department of Agriculture and Forestry, to secure a more detailed view of the government's response to the current dissatisfaction among farmers.
Yu, who received his Ph.D in agricultural economics from Purdue University, served as Commissioner from December 1981 to July 1988, when he was appointed Chairman of the ROC Council of Agriculture. Below are excerpts from his candid discussion about agricultural problems in Taiwan.
FCR: What percentage of Taiwan's population is engaged in agriculture, and what is the Provincial Government's annual budget for this sector of the economy? Also, how many staff members does your department have, and do you think your personnel and budget are sufficient to tackle the job?
Yu: As of the end of 1987, 4.29 million people, which means about 769,000 households, were engaged in agriculture. In my department, there are 442 employees, plus another 4,366 at our various subordinate research institutions. I am proud to say the educational level of my staff here is higher than in most other departments—we have more than 100 people with Ph.D. degrees! Our research institutions require high-level specialists, so strong educational backgrounds are vital.
The Provincial Government's budget for agriculture in fiscal year 1989 is NT$10.8 billion (about US$3.7 million). Though the average annual growth rate of our agricultural budget over the last few years has been 28 percent, which is notably higher than the 10 percent for the Provincial Government's overall budget, it is still not enough. Farmers keep asking for more help, more subsidies, and more public facilities. The same thing is true with our manpower; we need more people.
The total annual output for agriculture now amounts to NT$80 billion. Most of our emphasis has been on crops such as rice, vegetables, fruit, and flowers. We have many specialists in those areas. But structural changes in agricultural development have increased the importance of animal husbandry and aquaculture, and we have a shortage of experts in these fields.
FCR: What are your department's most important projects?
Yu: There are quite a few, but our top priorities are the following:
First, the Six-year Program for Rice Production and Rice Crop Substitution. Rice has been the traditional staple food of the Chinese people, and a chief factor in maintaining secure food supplies as well as economic stability. But Taiwan's increasing national income has reduced per capita rice consumption as people eat more meat, fish, eggs, dairy products, and fruit. Rice yields have grown tremendously, but the result has been over production. The six-year program is intended to ease this situation by crop diversification and by promoting more self-sufficiency in food production for Taiwan.
Second, we are advocating farm mechanization to alleviate labor shortages and increase productivity. Some examples of programs implemented for this purpose include a ten-year plan to promote wider use of power tillers, a four-year program to speed up agricultural mechanization, and another four year measure to encourage the use of paddy dryers.
Third, we are engaged in projects to improve fertilizer use to remedy the depletion of important nutrients in the soil in various over-farmed areas. This effort has been very successful in raising yields.
Fourth, we are encouraging animal husbandry. Currently, Taiwan's annual livestock production generates about NT$75,300 million annually, which is 27.7 percent of the country's agricultural production. It is important to note that animal husbandry requires less than one percent of the farmland on Taiwan, so pursuing this type of agricultural development fits in well with our policy of making the most efficient use of limited space.
Fifth, we selected about 80,000 so-called nucleus farmers, from the more than 800,000 rural families on Taiwan now engaged in agriculture, to undergo extensive training programs in agricultural modernization and development. The program was initiated in 1983, and we expect this nucleus of advanced farmers to act as a sort of "agricultural army" that will lead the way in modernization for the rest of the nation.
Sixth, we are moving to improve the marketing system. In the future, functions like produce collection, grading, and packaging will be upgraded and streamlined. We will also guide farming organizations in cooperative marketing techniques for more efficient operation.
Seventh, we are expanding health insurance programs for farmers. In October 1985 the Provincial Government initiated a health insurance program for members of farmers' associations in selected villages. So far, this move has operated on a trial basis, but the expanded coverage is being extended to all farmers in Taiwan.
FCR: The local newspapers reported that in May you told members of the Taiwan Provincial Assembly that agricultural affairs are handled by so many government agencies that your department is often unable to solve farming problems effectively. Would you elaborate on this?
Yu: Ideally, the Council of Agriculture (COA) under the Executive Yuan should be the highest organ in charge of agricultural affairs. But in reality, under the current system, there are quite a few other government agencies that deal with agricultural issues. For example, the Ministry of the Interior is in charge of opening up farmland to other uses, as well as health insurance programs for farmers; the Ministry of Economic Affairs is responsible for transactions involving agricultural products, plus commodity inspection and quarantine; and the Ministry of Finance handles credit and banking services for the farmers' and fishermen's associations. In addition, the Ministry of Education, the Environmental Protection Administration, and the Department of Health are also involved in certain agricultural issues. This is also the case for the Provincial Government. As a result, it is not only difficult for the COA to handle agriculture-related affairs, but also for provincial-level agencies such as mine when it comes to coordinating programs.
Fortunately, the government has appointed a task force to draft a revision of the Organic Law of the Executive Yuan. The preliminary decision is to upgrade the COA to the Ministry of Agricultural Affairs. This is good news for both our farmers and our country. But, when the new ministry is set up, its functions and authority will have to be expanded so it has the power to centralize the agricultural affairs of the nation effectively.
FCR: Recently you proposed that the government set up an ad hoc Agriculture Reformatory Committee to cope with current problems. What prompted that decision, what do you expect from the committee?
Yu: The Executive Yuan has announced that the COA is preparing to convene a national agricultural conference several months from now. The conference could produce some break-throughs in the current agricultural situation, and it will no doubt offer a good opportunity to discuss various problems. But for real solutions, a three-day conference is hardly adequate. And besides, the COA has to contend with quite a few government agencies, all of which have a hand in agricultural matters. The COA is not empowered to deal with agricultural affairs on its own, and coordinating with other agencies on various issues takes time.
That is why I suggested that an agricultural reform committee be set up before the Ministry of Agricultural Affairs is installed. The committee members should include high-level officials in the governmental agencies concerned, representatives of the farmers, agriculture experts and academicians, as well as related members of the Legislative and Control Yuans.
The main function of this ad hoc committee would be not only to tackle current problems, but also make long-term, policy-level plans and clearly point the way for our future development, even after the year 2000. For example, they would consider which projects should take priority over others, what our policy should be on import and export of agricultural products, and what proportions of our future agricultural industry should be devoted to crops, forestry, fishing, or animal husbandry.
Both the government and farmers ought to know where we are heading. Otherwise, officials might make the wrong decisions, causing loss and suffering. Policies must be sound for follow-up programs to be sound. Good programs will in turn build confidence among farmers and fishermen, and show them that the government knows clearly what it is doing and that it can be trusted.
FCR: Since last December, there have been at least six street demonstrations by farmers in protest of the government's agricultural policies and measures. On May 20, a protest in Taipei even turned violent. What are they asking for, and can the government solve their problems?
Yu: I understand that the May 20 demonstration was organized by the Yunlin County Farmers Rights Association, and that it demanded a comprehensive agricultural reform program. They proposed that the government elevate the Council of Agriculture to an agricultural ministry, reduce tariffs on fertilizers to lower production costs, adopt a health insurance program for farmers, set up an equilibrium fund or guarantee a pricing system to protect farmers, improve marketing to avoid exploitation, and restrict imports.
In fact, some of their suggestions have already been implemented by the government, and some are scheduled for action. But some of the farmers' demands derive from simple misunderstanding. We have communicated with farmers in various ways to brief them on our plans, and the government does have an obligation and the sincerity to take care of their problems.
But helping the farmers does not mean accepting all their demands. It is more appropriate to analyze their suggestions, figure out the problems, and find a rational approach to solve them. In the case of misunderstandings, the situation must be explained to the farmers.
FCR: What are your views on the future of Taiwan's agricultural development?
Yu: Agriculture is the foundation of any nation, and it helps maintain social stability. The EC has recently been advocating the idea that agriculture is a matter of ecology, environment, and man's basic needs. I agree. We must take a long-term view of our agricultural development. It is an industry that should be treasured not only by the government but by all the people.
With limited arable land, Taiwan must develop "quality" farming. Our goal is that the future agricultural labor force in this country will consist of young professionals who have received modern training and can cultivate high-quality products. Technology will also play an ever more important role in our development. I am personally optimistic about the future, and confidently believe we will create a second "agricultural spring" in Taiwan.