The recent promotion of solar power as part of the renewable energy agenda has largely excluded discussion of its impacts on farmland uses. This chapter places farmland transition from conventional farming to solar panel siting in the context of misallocating land resources. This line of investigation highlights the essential but often neglected issue of optimal land use. Using Taiwan as one example of newly industrialized economy, we highlight the observed yawning rent gap between farmers and power companies, together with the prevalence of scattered small-sized establishments of solar panels. The abovementioned phenomena are mainly due to the government subsidy to power companies in purchasing their electricity and the peculiar rule of treating small-scale solar development to be compatible with conventional farming. In the context of farmland, the functions of zoning regulations have evolved from reducing adverse externality to preserving farmland and finally to accommodating renewable energy siting such as solar panels. It is believed that the numerous sets of evidence demonstrated in this chapter are at least suggestive of the presence of misallocation of farmland uses in Taiwan if not serving as direct proof. We are also confident that the findings and arguments presented here are equally applicable to many other countries or regions where farmland is scarce in supply and small in size and rent for farming tends to be low.