Nantou's economy is based on agriculture. To cope with developments since joining the WTO, agriculture in Nantou has become more intensive and technologically advanced. Farmers account for 33.92% of the population (end of 2005). Nantou's farm produce is well known both domestically and internationally. The produce is of high quality and has become an important feature of Nantou.

Dongding Oolong Tea of Lugu, Songbo Evergreen Tea of Mingjian, Assam Tea of Yuchih and the high mountain tea of Sinyi and Ren-ai are favorites of tea lovers. The teas of Nantou are well-known around the world due to intensive marketing over the past few years.
In addition to delicately made bamboo handicrafts, bamboo growers of Jhushan have developed value-added products such as the popular bamboo charcoal. The objective is for one agricultural/fishing garden in each township to integrate local scenery and cultural features into it. In this way, tourists may visit the burgeoning agricultural areas and sample the produce or even pick it themselves. The 2006 Nantou Flower Carnival was intended to promote Nantou's specialty, flowers, on a global stage.

Agriculture may be a declining industry in other places; however it has been reborn and is leading the way for all industries in Nantou.