A Research on the Agriculture Financial System ：Focusing on the Agricultural Finance Law

• Main Authors: Tzu-Hsiung Lin, 林資雄
• Other Authors: Ying-Chin Chen
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/21396761483482887489

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.