Mexican Corn Producers Reject Price Cut, Citing Farmer Impact

Corn producers in Mexico have strongly opposed the federal government’s decision to lower the guaranteed price of corn. Sector representatives argue that production costs continue to rise, while guaranteed prices are decreasing, severely impacting the profitability of small-scale farmers.

Serapio Vargas, National President, Corn Product System, and legislator in the Sinaloa Congress, explained that the guaranteed price per ton for small producers has been reduced by MX$1,070 (US$52.35) compared to the prices set during the previous administration's Nutrition for Well-Being program. 

Vargas emphasized that the measure lacks social, technical, or political justification and jeopardizes the livelihood of thousands of small and medium-sized producers across the country. Additionally, he noted that the farming community is growing increasingly concerned, interpreting this policy shift as a potential threat to social programs established by the previous government. 

Ricardo Hernández, a member of the Corn Product System in Jalisco, highlighted that corn production costs have risen to an average of MX$50,000 per hectare due to high input costs, such as fertilizers. "With a price of MX$6,000 per ton, we cannot cover our costs. The cut in guaranteed prices is suffocating farmers," Hernández stated during a press conference.

Farmers face additional challenges, including the lack of a denomination of origin for Mexican corn, uncertainty in seasonal market dynamics, inadequate storage systems, the absence of a national seed producer, and minimal government consumption of domestic corn.

In response to these challenges, producers have proposed several measures to the federal government. They urge the adoption of policies that regulate both input costs and production prices, similar to strategies in countries like the United States and Colombia. They also suggest that the government purchase 52% of corn designated for human consumption to stabilize prices and protect producers without significant state expenditure.

Producers advocate for the establishment of a denomination of origin for native corn to protect its quality and secure better prices. Vargas emphasized the need for improved hybrid varieties and technological advancements to achieve the government’s food self-sufficiency goals. He warned that delays in implementing this measure could result in other countries claiming a denomination of origin for Mexican corn.

Hernández also called for transparency in decisions affecting farmers, particularly regarding tortilla prices. In this regard, the National Corn and Tortilla Plan, proposed by Claudia Sheinbaum’s administration, aims to ensure fair prices for corn producers while addressing high input costs and market instability. Julio Berdegué, Minister of Agriculture, stated that the government is working on agreements between corn and tortilla producers to achieve equitable outcomes. “We will invite stakeholders in the corn-tortilla chain to dialogue and reach agreements that benefit everyone,” he said during a press conference.

On Nov. 25, more than 200 producers staged a protest outside the Ministry of the Interior (SEGOB) in Mexico City, demanding mediation and dialogue between the MInistries of Economy and Agriculture to analyze production costs and reach mutually beneficial agreements. “We want authorities to provide data to justify their decision to lower the guaranteed price for small producers instead of relying on baseless arguments,” farmers stated.

This dispute comes as Mexico’s corn market faces significant challenges. Two weeks ago, Marcelo Ebrard, Minister of Economy announced that Mexico is likely to lose a USMCA dispute filed by the United States over Mexico's ban on genetically modified corn imports, following a preliminary panel decision.

In response, Sheinbaum proposed a constitutional amendment to ban the genetic modification of domestically grown white corn. “Producers depend on the seed, and with the cultivation of hybrid corn, the genetic diversity of the grain that originated from our communities and has been preserved for generations could be lost. Therefore, we have the primary obligation to ensure that white corn grown in Mexico is not genetically modified, and that will be enshrined in the Constitution,” she stated.