This study investigated the agriculture risks and opportunities in a fragile watershed, the Lanyang River Watershed (LRW) in Northeastern Taiwan, under the current situation of climate change. Agriculture in the LRW is a traditional sector, highly vulnerable to climate change, and is a declining economic sector due to the trend of trade liberalization of agriculture. At present, the government of Taiwan encourages local farmers to transform towards recreational farm types. Leisure agriculture operators have successfully transitioned their tilling to a business model of recreational farming. A telephone survey of leisure agriculture operators was applied with a three-stage approach to obtain their opinions. The results showed that climate change may entail risks for agriculture in watersheds. Transformation to leisure agriculture can enhance farm adaptation and increase farm income. The long-term implementation of slope- and geology-based land classification and land use planning can protect the watershed, especially from extreme weather, while enhancing water and soil conservation efforts, and bolstering climate resilience. Innovative agricultural practices offer viable solutions, including greenhouse farming for high-economic-value crops, leisure agriculture, organic farming, and ecotourism. These strategies can rejuvenate the LRW’s agriculture industry, foster ecological tourism, and provide opportunities for traditional farmers to thrive in this highly climate-fragile area. The implications of this case study are that appropriate responses can improve local climate resilience, and that correspondingly well-designed adaptation measures can transform threats and risks into new opportunities.