Farmers' organizations in Taiwan had made significant contributions to agricultural development and rural construction in the past few decades, but they confront great pressure and problems in the process of promoting the agricultural development process at the present time. These pressure and problems are mainly caused by the great changes in the environmental conditions. Shortcomings and problems of farmers' organization exist not only in structural aspect, but also in institutional, functional, and role performing dimensions. These problems and shortcoming needs policy adjustment. There have been many studies on farmers' organizations in Taiwan, but the study on the impact of environmental changes of these organizations or the study on the policy choice for adjustment on structure, institution, function, and role of these organizations is lacking. This study attempted to achieve these goals: (1) to delineate important effects of environmental factors on farmers' organizations, (2) to analyze the maladjustment and other problems of farmers' organizations due to the impact of environmental changes, (3) to reveal proper choices for adjusting policies to improve the structure, institution, function, and role of farmers' organizations. Science the farmers' associations are the most important farmers' organizations in Taiwan, and their history is much longer than other types of farmers' organizations, this study selected only such kind of farmers' organization for analysis. On the aspects of the change and environmental factors and the impact, this study found that social, economic, political, legal, international, and natural environmental factors have apparently changed in the past decades and these changes have had a great effect on maladjustment problems of most farmers' associations. Important problems are: (1) There is inconsistency between local farmers' associations and higher level farmers' associations, (2) There is an institutional problem about the election process for the leaderships, the term and duration of general manager and the distribution of profits, (3) There are functional problems about administrating, supply and marketing, credit, extension, and insurance business, (4) There are role performance problems regarding to the protection of farmers' right, the advancement of farmers' knowledge and technology, the promotion of household modernization, the improvement of farmers' productivity, the betterment of farmers' living condition, and the development of rural economy. After investigating the impact of various factors on farmers' associations, through measuring the opinions of 448 sampled local extension agents and local administrative officers, this study suggested the following policy choices for adjustment: (a) on the aspect of organizational restructuring important policy choices should include (1) to exclude sponsored members and to open farmers’ associations only to real farmer members, (2) to promote horizontal cooperation among local farmers' associations without combining associations, (3) to maintain a three level system, but the vertical relationship among them should be improved, (4) to keep the credit division in the structure of the local association. (b) on the aspect of institutional improvement, important policy choices should include: (1) to implement a direct election system for associations’ leaders, (2) to limit the maximum position duration of general manager, (3) to share bonuses with all associations’ members. (c) on the aspect of functional advancement, important policy choices should cover (1) to decrease the general managers’ authority and improve associations’ financial conditions to improve the associations’ management function, (2) to offer reasonable prices, to increase necessary service, to provide good quality commodities, to supervise the correct uses of agricultural chemicals, and to implement cooperative system for farmers. (3) to strengthen the credit functions through good management, (4) to improve extension agents knowledge, to stabilize their positions, and to improve their service attitude and behavior, (5) to expand business to take care of farmers’ health and crop insurance. On the aspect of role adjustment, important policy choices may include: (1) to protect farmers’ rights, (2) to improve farmers’ knowledge and technology, (3) to promote modernizing farm households, (4) to increase farmers’ profits, (5) to improve farm households’ standard of living, and (6) to develop the rural economy. In each aspect of policy choices on role advancement, more detailed suggestions have been made.