In the land reform in Taiwan Province Province, a win-win policy of "farmers get land and landlords benefit" is implemented, and a peaceful and gradual approach is adopted. First, the cultivated land outside the landlord's private plots will be collected and released to farmers, and then the government will lend it to farmers by agreement, allowing farmers to buy land within the landlord's private plots, so as to achieve the goal of land to the tiller.
When the Kuomintang defeated Taiwan Province Province, a large number of gold, silver and dollar jewels were shipped from the mainland. At the same time, Chiang Kai-shek took various measures to refund money, which could compensate many landlords who lost their land in the land reform and prevent possible social unrest and intensification of contradictions.
Although the land reform in Taiwan Province Province played a fundamental role in the economic take-off of Taiwan Province Province in 1950s, and achieved great success and historic contribution, there were still some shortcomings and limitations. Because the limited land is distributed to many cultivators, the land division is narrow, fragmented and scattered, which is not conducive to agricultural intensive management and also affects the improvement of agricultural mechanization and modernization. According to statistics, the average cultivated land area per household in Taiwan Province Province is less than 1 hectare, of which about 40-50% is less than 0.5 hectare.
Since the late 1960s, this small-scale and decentralized agricultural land management has shown signs of hindering the further development of agriculture. In view of this, at the end of1970s, Taiwan Province Province began to carry out the second land reform with the main contents of expanding the scale of agricultural land management, implementing agricultural land adjustment and improving agricultural production environment.