Reports on the first crop of rice indicate a good harvest this year. When the first crop is harvested in August, according to Taiwan Provincial Food Bureau, the estimated rice production will be more than 1,350,000 metric tons, the highest record for the first crop. The good harvest is the result of the government's policy and various effective improvement measures. They include appropriating large sums of money for agricultural assistance, establishing a special food equalization fund, setting the minimum purchase price for rice, government rice purchases, insuring the farmers' benefits, providing interest-free loans for rice production and reducing production costs. Thus the farmers became much more interested in growing rice, and the acreage of rice production increased markedly.
Taiwan needs 2,440,000 metric tons of rice for annual consumption. The production goal must exceed this amount. The government has been actively promoting the increase of rice production under four principles: 1. maintaining a reasonable price for rice; 2. increasing the acreage of rice paddies; 3. raising the unit production of the second crop; and 4. improving the concept of the system of agricultural administration and management. The first principle is particularly important in inducing a good harvest. To maintain a reasonable price for rice, the government first, sets a guaranteed price, then appropriates funds to purchase rice without limit. As the farmers now are able to obtain reasonable profit, their interest in growing rice has increased sharply. And the acreage of rice paddies and rice production also has increased steadily.
