202511/06
To benefit the mountain village economy through forest ecosystem services, the Forestry and Nature Conservation Agency (FANCA) has been actively promoting under-forest economy policies since 2019, creating a sustainable green forest industry for mountain villages and tribal communities, with a cumulative output value of over NT$150 million to date. To help consumers identify under-forest economy products, the FANCA launched a certification label for under-forest economy products since 2024. At present, 28 forest owners across Taiwan have passed the audit. The FANCA held a “Certification and Results Presentation Conference for Under-forest Economy Products” today (11/6) to commend forest owners’ efforts towards coexistence and prosperity with nature. It was also announced that farmers who pass the certification will receive an annual subsidy of NT$30,000 per hectare for three years. The FANCA will be working together with forest owners to create an under-forest economy industry that supports the forest ecosystem services.
Multiple Benefits of the Under-forest Economy
Director General Lin, Hwa-Ching of the FANCA said that traditional forest management is mainly based on timber production. From planting saplings to the final harvest, forest owners need to wait for as long as 20 to 30 years. As a result, they not only generate no profit during this period but also incur significant labor and forest management costs. Under the trend of sustainable and resilient development, in addition to increasing Taiwan’s timber self-sufficiency rate, it is also necessary to introduce diversified forestry management models to create income for forest owners. The under-forest economy can serve as one such model. To date, the under-forest economy has cumulatively enhanced the green economic output value of mountain villages by over NT$150 million. Products include: log-cultivated shiitake mushrooms, wood ear mushrooms, Taiwan jewel orchid, forest bee products, Taiwan wild tea, Assam indigo, Formosan figs, bamboo mushrooms, Taiwan ground orchid, and five-leaf ginseng. Greater green economic benefits can be created through developing the under-forest economy based on land type.
Promoting the under-forest economy allows forest owners to earn short-term income while managing the timber forests. At the same time, by leveraging the high-quality environmental conditions of forest land, it creates added value to forest products, thereby increasing the overall income of forest owners. This approach ensures that forest land remains for forest use, as well as prevents land over-exploitation or conversion to non-forestry purposes such as agriculture or tourism, thus enhancing the shared benefits of forest ecosystem services. Sufficient local industry revenue is necessary to increase employment opportunities and encourage the youth to return to their hometowns to care for the land and the elderly. For example, Liao, Jin-Yi, a young farmer from Wutai Township, runs an under-forest beekeeping business and grows Taiwan jewel orchids. He was also recognized as one of the “Top 100 Young Farmers” in 2024. Mudan Township also turned its focus to the under-forest economy for placemaking and local revitalization, driving the overall development of its industries. In addition, endevors in other places such as Miaoli’s Saisiyat tribal community, Sanxia’s Assam indigo dyeing, Nantou’s Lienhuachih under-forest beekeeping, and Taichung’s Dasyueshan log-cultivated shiitake mushrooms showcase the efforts of the youth who returned to their hometowns, creating a vibrant environment where the happy chatter of young and old living together can be heard once again.
Product Certification System and Certification Label Design
To ensure food safety for consumers and maintain the market value of under-forest economy products, the FANCA commissioned the Tse-Xin Organic Agriculture Foundation to develop and implement relevant standards for the certification of under-forest economy products. Su, Muh-Rong, CEO of the Tse-Xin Organic Agriculture Foundation, stated that the primary purpose of under-forest economy management is to “adopt production methods that have a lower impact on forest resources and the environment in order to reduce the risk of ecosystem degradation.” Therefore, forest owners are prohibited from using harmful substances such as pesticides and chemical fertilizers to maintain biodiversity and ensure the quality and safety of products. The certification system covers all aspects of production, processing, packaging, and distribution. The certification process includes on-site audits and product sampling. Samples are tested for “pesticide residues,” “heavy metals,” and “ingredient composition.” Only those that pass the tests are awarded the “Under-forest Economy Product” label.
The FANCA explained that the design of the under-forest economy label is in line with key principles: operations must avoid damaging forest vegetation, and prohibit the use of herbicides, insecticides, or chemical fertilizers. The imagery represents the gathering of trees into forests, the expansion of groves into forests, carbon sequestration and reduction, and symbiosis and mutual prosperity. The green label indicates products produced on forestry land. The blue-green label represents products from the broader under-forest economy. Currently, the following items have been accepted for certification: log-cultivated shiitake mushrooms, wood ear mushrooms, Taiwan jewel orchids, forest bee products, Taiwan wild tea, and Assam indigo. Forest owners are welcome to apply for the certification for other items once products are produced. The FANCA stated that any products produced in accordance with the principles of the under-forest economy are eligible to apply for voluntary under-forest economy product certification as long as a complete canopy layer is maintained, whether it is on forestry land, agricultural or pastoral land around the forest, or indigenous reserved land.
Supporting the Under-forest Economy Industry, Certified Forest Owners to Receive Incentive Subsidies
Professor Chen, Mei-Hui of the National Pingtung University of Science and Technology, who has long been stationed in indigenous communities with funding and support from the FANCA, said that the expansion of the under-forest economy, from an increase in products to the scope of certification, offers more concrete advancement in terms of sustainable management of forests and the care for mountain villages and tribal communities. SheHe also mentioned that it has also enhanced the partnership between mountain villages, tribal communities and the FANCA, highlighting that in addition to boosting the income of mountain villages, the under-forest economy also effectively protects forest ecosystems, maintains biodiversity, and promotes the co-prosperity between nature and economy.
Lin, Hwa-Ching said that while the under-forest economy may not generate substantial output in the short term, its long-term production characteristics bring predictable income to forest owners, making it well-suited for residents of mountain villages and tribal communities. However, due to the small scale of many under-forest economy operations and their location in mountainous areas, it is difficult to organize production and marketing teams as forest owners are too widely scattered. This means that they are prevented from applying for agricultural product certification subsidies or incentives. To support the steady development of the under-forest economy industry, forest owners who obtain the ”Under-forest Economy Product Certification Label” will be eligible for an annual subsidy of NT$30,000 per hectare for three years, following the same guidelines for organic agriculture incentives and environmentally-friendly farming subsidies.
The FANCA emphasized that by improving the certification system, it hopes to enhance consumer and distributor awareness on “under-forest economy” products and to support environmentally-friendly production models that contribute to forest ecosystem conservation. It also hopes that more forest owners will join in so that the under-forest economy can become the top option to achieving a win-win situation for Taiwan’s forestry and conservation.