Land is one of the primary inputs in an agricultural economy, forwhich crops compete. In the Japanese colonial period, rice andsugar were the two most important products in Taiwan. The socalled "Rice-Sugar Rivalry" problem is to study how Japanese sugarmanufacturers successfully induced farmers to plant sugar-cane inTaiwan, where the land had been mainly rice-fields. This paperdevelops a market equilibrium model to re-examine the problem.