According to the statistics aggregated by each district office in Taichung City, there are 2080 cases of the 37.5% arable rent contracts, involving 4157 parcels of farmland covering an area of 718 hectares, as of July 31, 2015. For a landlord and a tenant to terminate a lease agreement, except for violation of the provisions of the lease agreement, the landlord usually wants the tenant to pay cash as compensation, but to prepare for such a big amount of money in a short time is really a great financial burden to the tenant.
Currently there is another way to solve the 37.5% arable rent contract problem. According to the Agricultural Development Act, whose subparagraph 5, paragraph 1, Article 16 stipulates that the land governed by the 37.5% Arable Land Rental Reduction Act may be divided and owned separately by the leaser and the lessee, provided both parties agree to terminate the lease agreement through land division. In other words, the leaser and the lessee can now choose either monetary compensation or land division as a way to terminate the lease agreement. The size of the arable land divided according to this provision shall not be restricted by the lower limit of 0.25 hectares for land division but the number of subdivided lands shall not exceed the total number of leasers and lessees.
Thus, the leaser can recover part of the land for farming while the lessee can have his/her own farming land. It is indeed a win-win situation for both parties.