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This paper reviews the constraints and challenges of paddy farming in Taiwan. Based on those evidences, a set of eco-friendly rice farming practices raised by SRI principles are proposed from exploratory SRI trials conducted in Taiwan. The trials show that even with less exact leveling in the SRI field than is ideally provided, the average yield for SRI was higher than for CP; with an aerobic soil situation, the combination of biocontrol agent application and SRI management was seen to give better rice blast control; and the highest paddy yield was obtained from single-seedling transplants from potted nursery trays which protect the young seedlings’ roots from shock or twisting, compared with the planting of more numerous seedlings grown on flat nursery trays by a mechanical rice transplanter. In conclusion, a conceptual framework for eco-friendly paddy farming is formulated to encourage farmers to practice SRI principles. Among the participants in this collaboration, a co-operating group of SRI farmers is organized under investor sponsorship to guarantee the quality and safety of food, integrating an inspection service and food-source traceability from field to market with the production process. It is seen that in Taiwan, SRI principles can be adopted by local farmers without need for additional premiums through eco-friendly collaboration that can raise simultaneously the productivity of land, capital, and irrigation water. In addition, this collaboration can take advantage of increasing consumer demand for safe food with fewer chemicals and for supporting a greater level of biodiversity.