SADER Reaches Agreement With Bajio Corn Producers

The Mexican government has reached an agreement with corn producers from the Bajio region. The agreement includes direct financial support of MX$950/t, preferential-rate loans, and crop insurance coverage.

In the early hours of Wednesday, Julio Berdegué, Minister of Agriculture and Rural Development (SADER), announced that the government had reached a deal with local corn producers’ representatives from Jalisco, Guanajuato, and Michoacan. Among the key commitments is a direct payment of MX$950/t (US$51.63/t) of corn, of which the federal government will contribute MX$800 and the states will provide the remaining MX$150. This means that farmers will receive MX$950/t in addition to whatever price they negotiate for selling their product.

During President Claudia Sheinbaum's morning press conference, Berdegué stated that the agreement was formalized in a signed memorandum supported by most agricultural representatives in the region. The measure follows producers’ rejection of a floor price of MX$6,050/t, which had been announced by SADER yesterday. Under the new arrangement, the guaranteed base price will be MX$6,150/t (a fixed base of MX$5,200 plus the MX$950 support).

Following the agreement’s acceptance, highways in the region, recently blocked by farmers protesting the initial proposal, are expected to reopen during the day. On Tuesday, producers had already announced the partial reopening of one lane to allow essential vehicles such as ambulances and those carrying elderly people and children. The move was described by farmers as a “gesture of goodwill” after negotiations with senators who listened to their concerns and expressed willingness to continue dialogue.

However, protests are expected to continue in other regions, such as Sinaloa, where demonstrators have threatened to extend their movement to the US border crossings to draw international attention. They disagree with the terms reached between Bajío producers and federal authorities.

The benefits under the new agreement will be directed to 90,000 producers with plots of up to 20 ha, representing about 98% of all producers in the Bajio region. The program will cover up to 200 t per farmer. Berdegué explained that the international corn price currently hovers around MX$3,400/t, and once logistics costs are added, it reaches roughly MX$4,850—levels that “do not cover the production costs for many Mexican farmers,” he said.

Other measures include the expansion of the Cosechando Soberanías (Harvesting Sovereignty) program, which will provide loans with an annual interest rate of 8.5%, about half the rate charged by commercial banks. Additionally, crop insurance will be offered for the 2025 spring-summer cycle of white corn, covering potential losses due to droughts, floods, or pests.

Berdegué also highlighted that, under President Sheinbaum’s instruction, work has begun on designing a national corn marketing and management system with a legal institutional framework. The initiative aims to establish reference prices, promote direct agreements between producers and the industry, and define clear rules to bring transparency to the marketing chain. 

President Sheinbaum emphasized that all support will go directly to producers without intermediaries. She also noted that major corn flour companies had already agreed months ago to purchase corn at prices above international market levels following negotiations led by SADER.

Finally, the president announced that in 2026, the government will launch an additional support program for producers cultivating native corn, particularly in the southern and southeastern regions. “We want to preserve native corn because it represents Mexico’s biodiversity and cultural richness,” she stated.