Through a series of economic development plans launched since 1953, Taiwan's economy has been transformed from bemgpredommantly agricultural to having industry as the leadmg sector. Throughout that process, farmers faced more and more uncertamt1es. Instead of an increase m farm size due to the ltm1ted land resource, part-time farming mushroomed and is now a major means of raising farm famtly income. It has enabled Taiwan to solve the most difficult problem of income disparity between farmers and nonfarmers. A dual structure of agnculture wilt probably develop m Taiwan, with a small number of internationally competitive full-time farmers and a large number of part-time farmers. Taiwan's future agricultural pohcies should place more emphasis on the improvement of productivity of part-time farmers rather than the enlargement of farm size and should provide the necessary measures to help the part-time farmers obtain the services needed to maintam their efficiency in farmmg. Agriculture under the small farm system needs firmer and stronger pohc1es to support further development.