Mexican Farm Output Declines as Insecurity and Costs Escalate

Mexico’s agricultural sector is facing rising operational risks as 20% of the country’s farmland is no longer being planted, according to the National Agricultural Council (CNA). Sector leaders warn that insecurity, extortion, migration, limited credit access and increasing production costs have become structural pressures for producers and are beginning to affect national food supply.

“The 20% of the parcels are no longer being planted. The reasons are organized crime, increase in prices, lack of water and migration,” said Jorge Esteve, President, CNA. He noted that in many regions, most active farmers are older adults, and younger generations are leaving rural areas due to low returns and security risks.

CNA reports that organized crime has expanded across several regions and has diversified its methods of extortion. Beyond charging extortion fees, criminal groups in some areas now demand payments per hectare or per ton produced and force producers to purchase inputs from specific suppliers. “There is a gigantic extortion, a sophisticated extortion. When you go to irrigation districts, they already include the quotas of organized crime,” Esteve said. 

These pressures are contributing to food price increases. According to Esteve, extortion-related costs have raised consumer prices between 10% and 20%, depending on the product and region.

Luis Fernando Haro, Director General, CNA, said producers and agribusinesses have had to invest more in security, from surveillance systems to escorts for transport trucks. Insurance costs have also increased, reaching up to 25% of a vehicle’s value in some cases, and several insurers have stopped covering trucks altogether.

Despite these challenges, Esteve said he remains cautiously optimistic because the federal government has begun addressing security issues. However, he emphasized that insecurity is only one of several structural problems affecting the sector. He highlighted that the lack of subsidies, financing, labor and water continues to constrain production. Only eight out of every 100 Mexican farmers have access to credit, compared with nearly full access globally. Interest rates highlight the disparity: 3.5% to 4% in the United States versus 18% to 20% in Mexico.

Esteve called for a national plan to modernize and strengthen the agricultural sector, restore subsidies and price coverage tools, and invest in technology to ensure long-term food security. “It has to be done for the security and the food of all Mexicans,” he said. He warned that without coordinated action between the government and industry, the profession of farming in Mexico could continue to decline. 

“We are being put to compete in a very disadvantageous way,” he said, adding that insecurity has become an unavoidable part of the cost structure. “Grains and food products are starting to reach the Mexican consumer between 10% and 20% more expensive,” he noted.