| Summary: | 碩士 === 中原大學 === 財經法律研究所 === 97 === The first farmers’ association in Taiwan was founded as early as the Japanese
colonial period, since more than 100 years ago. Beside the widely known credit/loan
activities that the farmers’ associations engage in, the FA actually contains four
departments: supply/sales, insurance, promotions, and credit department. Due to the
changes in economic structure such as globalization and open developments, the
environment had grown increasingly unfavorable towards FA, causing the FA problems
in operation and competiveness. Furthermore, with the growing rate of uncollectible
debts, the FA suffered from falling profits and net worth. It was inevitable that, before
laws on agricultural finance were established, the FA’s credit department would remain
the most problematic and corrupt financial organization in Taiwan.
To resolve the problems encountered by the farmers’ and fishermen’s associations,
the Legislative Yuan of Taiwan passed the “Law on Agricultural Finance,” which did
answer to some of the troubles of the FA. However, to distinguish the agricultural
finances from the regular finances in the current dual financial system and to solidify
the agricultural finances, it is nevertheless necessary for a thorough review and reform.
This paper discusses in the second section, the backgrounds upon which Laws on
Agricultural Finance is established and explores the reasons to a needed reform. The
third section looks into Japanese laws on agricultural finance and compares/contrasts
the Japanese system to Taiwan’s. The fourth section of the paper provides an in-depth
examination of the financial system prior to the laws, and focuses on four of the most
important areas regarding the FA: the structure of agricultural finance, nation-wide
agricultural banks, the financial monitoring system, and the savings-backing insurance
system. Finally, the fifth section discusses the short-sighted adaptation of Banking
Law due to the limited time frame, and the sixth section presents an analysis and
solutions to the legal issues incited from the FA’s credit department.
In summary, this paper provides an account of the current conditions of the FA, and
presents suggestions for amendments. It is this paper’s hope that future farmers’
associations will not only adhere to government policies for agricultural finances, but
also operate smoothly as an impeccable finance system.
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