The paddy and upland fields utilization adjustment program, similar to commonly known land set aside program, was revised and extended to year 2004 in order to cope with the challenge of rice import as Taiwan becomes a member of WTO.This adjustment program deals mainly with the short term rice price stabilization issue and ignores its detrimental long term consequences. One rationale for not considering alternative approaches might be simply because useful knowledge on the long term gains of alternative programs are lacking. This short article addresses one of the alternative approaches, the tariffication of rice import, in dealing with Taiwan's rice import liberalization issue. The paper discusses the scenario of a series of tariff reductions and evaluates its impacts on rice price government expenditure and tariff revenue. Tariffication will incur substantial income loss to rice farmers and the tax payers are expected to share some of the loss . Therefore, the paper proposes and income compensation scheme which includes direct and indirect subsidies to rice commodity, land subsidy based on resource and environment contribution to the society, and farm wage subsidy based on farmer' s age and ability to adjust. This scheme costs 19.1billion NT dollars in the first year, roughly equals to the amount of current rice programs, and falls subsequently to 10.6 billions after 15 years. The downward adjustments of rice price as well as farm land rent in the processes of tariffication and tariff reductions provide an opportunity for farm consolidation and enlargement, and enhance long term competitiveness of rice producion.