Mexico to Invest Over MX$80 Billion in Small-Scale Farming

The Mexican government, through the Ministry of Agriculture and Rural Development (SADER), will invest over MX$80 billion by 2030 to strengthen small and medium-scale agricultural production and ensure food security for the Mexican population.

Julio Berdegué, Minister, SADER, highlighted that as part of Plan México, the goal is to improve the well-being of small and medium producers in both rural and coastal areas and increase food production to guarantee the right to nutritious, sufficient, and high-quality food. In 2025, investment will amount to MX$53.9 billion and will increase each year to reach MX$83.7 billion by 2030, aiming to serve a total of 750,000 producers across 1,184 municipalities.

This initiative encompasses different stages of the value chain through the Well-Being Programs. Leonel Cota, Deputy Minister of Agriculture and Rural Development, stated that this year, the Production for Well-Being and Fertilizers for Well-Being programs will receive investments of MX$16.8 billion and MX$17.5 billion, respectively, to support 2.01 million and 2.06 million producers. By 2030, those amounts will increase to MX$19.4 billion and MX$22.1 billion to reach 2.5 million farmers each.

Berdegué emphasized that these efforts aim to increase white corn production from 21.3Mt to 25Mt, focusing on Chiapas, Veracruz, Campeche, Oaxaca, Guerrero, Tabasco, Yucatan, and Morelos. These states were strategically selected due to their water availability, fertile land, and high number of farmers. A similar approach will be taken with bean production, which is expected to grow from 730,000t to 1.2Mt, with initial advances in Zacatecas, Durango, and Nayarit, and continued efforts next year in Chiapas, Chihuahua, Puebla, Veracruz, San Luis Potosi, and Guerrero.

Additionally, rice production is projected to increase from 221,500t to 450,000t, and milk from 13 billion L to 15 billion L. Similarly, Milk for Wellbeing (formerly LICONSA) will increase its purchases from 687 million L to 1.3 billion L by 2030. In later stages of the productive chain, Berdegué mentioned that the new program Harvesting Sovereignty will provide support for commercialization and value-adding to primary products.

President Claudia Sheinbaum emphasized the importance of commercialization and value-adding. “Intermediation is a problem that affects the vast majority of small and medium-scale producers,” she said. She explained that part of the support will come through Food for Well-Being and Milk for Well-Being, but that most of the sales should be carried out through Direct Marketing Agreements between producers and companies, such as those in the corn flour and nixtamal and tortilla industries.

Berdegué pointed out that through Harvesting Sovereignty and with support from FIRA (Trust Funds for Agriculture), small and medium-scale producers of corn, beans, rice, wheat, and coffee, as well as those involved in milk production or fishing, will be able to access loans of up to MX$1.3 billion at an 8.5% interest rate. They will also have insurance in case their harvest is lost due to climate events, pests, or diseases, and price coverage insurance to ensure a guaranteed minimum price.

Another key component of the project is to strengthen the connection between scientific and technological research and small and medium agriculture, and to reinforce plant and animal health programs in priority regions. In this regard, SADER recently signed a collaboration agreement with the National Technological Institute (TecNM) to join efforts in promoting food self-sufficiency and sovereignty through academic, scientific, cultural, research, innovation, and technological initiatives.

Maria Luisa Albores, Director General of Food for Well-Being, said that through this program, eight processing and packaging plants will be built for coffee, cocoa, corn, beans, and honey produced by small and medium-scale farmers. She also noted that by the end of 2030, there will be 30,000 Well-Being Stores covering 100% of municipalities, helping contribute to national food self-sufficiency and nutrition for all Mexicans.

In addition to supporting rural areas, another objective of the federal administration is to ensure food supply and reduce dependence on imports, with the aim of reclaiming key ingredients like corn and beans that are central to Mexico’s cultural and culinary identity. This will boost the gastronomic industry, retail trade, and national food security. By 2030, it is projected that at least 10% of the value of products sold in supermarkets and department stores will come from domestic inputs. "We aim to reclaim self-sufficiency in essential foods that are part of our history and our taste," declared President Claudia Sheinbaum.