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Mexico Strikes Maize Pact With Bajío Farmers as Many Blockades Lift, Others Persist

The move responds to a global price slump that left many producers selling below costs.

Overview

  • The federal government and Guanajuato, Jalisco and Michoacán producers signed a targeted support of 950 pesos per tonne, with 800 pesos from the federation and 150 from state governments.
  • Roughly 90,000 Bajío farmers with up to 20 hectares will be eligible, with a cap of 200 tonnes per producer, and payments are scheduled to begin next week.
  • Authorities expanded the Cosechando Soberanía program to offer 8.5% annual credit and agro-insurance to borrowers to cover droughts, floods and pests.
  • A new Mexican Market-Ordering and Maize Commercialization System is being created to set reference prices and foster direct sales to industry, with its legal framework still under review.
  • Many Bajío roadblocks were lifted, but closures remained in Sinaloa and parts of Querétaro, Guanajuato, Hidalgo and the State of Mexico as some groups rejected the deal and warned of renewed blockades; industry groups estimate about 2,300 million pesos in losses.