This paper focuses on the savings behavior of Taiwan's farm households in theJapanese Colonial Period. We find that APS of farm households during the period of 1918-1934 was 18, while APS of rice farmers in 191 S-1937 was 14.Compared with APS in 1976, these races are not low. As for rhe determinants offarm households' savings, we obtain three main empirical results. (1) Disposableincome was the most important and significant determinant of saving, while thearea of land occupied by farmers had a negative and significant effect on saving,ceteris paribus. (2) The family size had negative impact on saving. (3) Otherthings being equal, the savings level of rice farmers was significantly less thanthat of sugar cane farmers, and the savings level of owner-cultivators or semiowner@cultivators was higher than chat of tenants'.