Mexico Agrees to Create National Strategic Grain Reserve

Agricultural producers and federal authorities agreed to create a national strategic reserve of staple grains. This initiative will lay the groundwork for a new agricultural model beginning in 2026. Following a series of dialogue sessions between representatives of the National Front for the Rescue of the Mexican Countryside (FNRCM) and government officials, a consensus was reached on Dec. 17 to establish a strategic food reserve. The proposal was put forward by the FNRCM as an alternative measure aimed at stabilizing prices for staple grains.

Eraclio Yako Rodríguez, Leader, FNRCM, noted that although an agreement on guaranteed prices was not achieved, this mechanism will make it possible to immediately address the liquidity shortage currently affecting the sector. “This struggle took place on multiple fronts: in the streets, on the highways, in offices, and at the negotiating table. Everyone from their own position, but with a shared objective. Today we can say there has been progress,” he said.

The most recent arrangement regarding corn prices was reached in October with farmers from the Bajio region. On that occasion, the government agreed to pay MX$950/mt in addition to a fixed base of MX$5,200, resulting in a guaranteed base price of MX$6,150/mt. However, producers from other regions were not satisfied with this agreement and decided to continue protesting.

The new project envisions a joint investment of MX$100 billion (US$5.5 billion) by the federal government and the private sector. It includes the purchase and storage of staple grains such as corn, beans, wheat, and sorghum, as well as other products from the Mexican countryside, with the goal of strengthening food security and providing certainty for producers in the sale of their goods.

Under this scheme, producers will be able to access financing using their harvests as collateral, without losing ownership of the grains and without assuming financial or storage costs. These costs will be absorbed by the Federal Government, either directly or in coordination with state governments, granting producers up to six additional months to market their harvests under better market conditions.

Rodríguez emphasized that the funds obtained through this mechanism will be an advance against the value of the harvest, allowing producers to meet immediate obligations, such as purchasing fertilizers, seeds, agrochemicals, or servicing bank loans, without being forced to sell their products at distressed prices.

He also highlighted that the federal government committed to convening the main grain-consuming companies in order to encourage the purchase of domestic products and improve the prices paid to producers. This process is to be formalized through purchase agreements with the agri-food industry, with the state acting as guarantor.

In addition, an interinstitutional committee will be created to maintain precise control over the national food inventory. “We will know exactly how much food we have, who has it, where it is located, and what it is worth,” Rodríguez stated. Finally, the agreement includes the establishment of working groups with the Ministries of Economy, Interior, and Agriculture (SADER) to review the Free Trade Agreement and advance toward a new agricultural model.

The FNRCM leader reported that this agreement will have nationwide scope, benefiting producers in all states across the country without distinction, and that its implementation will begin once technical and operational details are finalized. He added that the only remaining item is to define the official name under which this strategic reserve will be known, in order to avoid confusion and ensure clarity in its application. “We want a nationalist agriculture, with national prices and national costs,” Rodríguez concluded.

Key aspects of the agreement remain pending, including the volume of grains to be stockpiled, storage locations, purchase prices, and the companies or storage operators that will participate in forming these reserves. In this regard, a new meeting is planned for mid-January 2026 to begin discussions on the new agricultural model for Mexico.

As a result of this agreement, a halt to protests and highway blockades during the December holiday season was agreed upon, betting on compliance with what was assumed and on the continuation of institutional dialogue, agricultural movement leaders noted. At the same time, the role of transport operators stands out, as they held security-related meetings and reached their own agreements, forming a key alliance with farmers to achieve the objectives sought by both sectors.