《TAIPEI TIMES》 Farmers’ allowance raised to NT$15,000

Legislative Yuan President Han Guoyu presided over a meeting of the Legislative Yuan in Taipei yesterday. Photo: Chen Yiguan, Taipei Times

Feedback: In addition to the increase from NT$8,110 to NT$15,000, the relaxation of eligibility requirements will make more than 7,000 people newly eligible to receive it.

/ Reporter, Central News Agency

The Legislative Yuan approved the amendment to the law on the third reading yesterday, increasing the monthly subsidy for veteran farmers from NT$8,110 (US$458) to NT$15,000 and relaxing the eligibility requirements. The changes will take effect retroactively from July 1.

The amendment passed the third reading after a vote and also introduced a mechanism to review subsidies every two years. If the Consumer Price Index (CPI) rises by 3%, the subsidy will be adjusted, with the central government bearing the additional costs.

The revised law raises the applicant's annual non-agricultural income threshold from NT$500,000 to NT$600,000, and raises the upper limit of the assessed value of their land and properties from NT$5 million to NT$10.25 million.

The changes are expected to make more than 7,000 new people eligible for the subsidy.

The Executive Yuan approved its own version of the law in January, proposing to increase the monthly allowance to NT$10,000.

However, the Chinese Kuomintang (KMT) and the Taiwan People's Party (TPP) caucus co-sponsored a proposal to increase the subsidy to NT$15,000, arguing that a larger increase is necessary to keep up with inflation.

The Legislative Yuan ultimately approved the opposition version, after approving a joint amendment motion submitted by the two party groups.

Xu Yuzhen, director-general of the Kuomintang caucus, said that this increase is not a charity, but a recognition of farmers' contribution to Taiwan's economy.

She said the changes would improve farmers' retirement security, reduce the financial burden on their children, narrow the urban-rural gap and enhance food security.

Chen Peiyu, deputy director-general of the DPP caucus, defended the NT$10,000 increase proposed by the cabinet, saying it was a more fiscally responsible approach that would also expand eligibility and introduce inflation-based adjustments.

Chen said subsidies represent long-term government spending and must consider funding sources.

She criticized the opposition proposals, saying higher payments would likely require additional borrowing and divert funds away from other public spending.

The Ministry of Agriculture said that increasing the monthly subsidy to NT$15,000 instead of NT$10,000 would require an additional expenditure of NT$32 billion per year.

The Executive Yuan said in a statement yesterday that the additional costs exceeded the government's budgetary capacity and would divert resources from other agricultural projects.

Taiwan launched the Old Farmers Subsidy Program in 1995 to provide monthly payments to farmers who are over 65 years old and have participated in farmers insurance for at least 15 years.

Initially set at NT$3,000, the subsidy was raised to NT$7,000 in 2011 and adjusted to NT$8,110 in 2024 after the four-year CPI basic review.