Mexico: Less Subsidies, More Incentives
WASHINGTON - Jan 30/14 - SNS -- Mexico's new six-year agriculture development program suggest the country wants to move toward a supply-management model for dry edible beans and other key crops.
There is no overt talk about production, price and import controls. Instead, the country is looking at the creation of a "control Panel" to manage the supply-demand balance for rice, dry beans, corn, wheat, soybeans, and sorghum The ultimate goal is to have domestic production cover 75% of annual demand by 2018, instead of the current average of 58%.
Looking at Mexico's aims, the U.S. agricultural attache for the country said, "A key take-away component . . . . is a push for increased productivity while moving away from subsidies and more toward incentives."
The notion was contained in a December 13, 2013, Decree from the Secretariat of Agriculture, Livestock, Rural Development, Fisheries and Food (SAGARPA). This Program is part of the National Development Plan announced the previous May.
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