Policy prospects for the development of basic grain agriculture

Abstract

In Mexico, the approach to public policies in economic matters is integrated into the National Development Plan (PND, in Spanish). In the case of the primary sector, its strategic importance in relation to its general macroeconomic position and the application of countercyclical policies have allowed this sector to respond quickly, a situation that has been induced by the State when proposing policies, strategies and programs to strengthen such activity and generate welfare for producers in this sector. However, in Mexico the primary sector, particularly the agriculture of basic grain crops in rainfed areas, presents great difficulties since this productive subsector depends to a large extent on the annual volume of rainfall. ECLAC, FAO and IICA (2010) agree that a key to improving well-being in the agricultural sector must be integrated into international and local economies, with productive linkages with other economic sectors. With an integrated vision of the rural environment and agriculture, development and production promotion policies will have a favorable socioeconomic impact to contribute to economic recovery and promote development.

            This document integrates scenarios derived from the agricultural policy implemented by the Federal Government from the 2019-2024 period; policy that proposes to grant economic incentives to the segment of traditional producers of basic grains. In order to generate some perspectives and conclusions derived from agricultural policies, it was considered necessary to carry out a diagnosis of the situation of agricultural activity in Mexico, where the policies and strategies that have been proposed in the primary sector program that has been prepared were integrated. by the Ministry of Agriculture and Rural Development (SADER) for the period 2019-2024 to achieve well-being and food self-sufficiency with the contribution of the basic grain production subsector

            The methodology used is of an analytical nature, the behavior of the National Gross Domestic Product (GDP) and the contribution made by the primary sector to this macroeconomic indicator are examined. In addition, the relationship between what the primary sector contributes to the national GDP and what the Federal Government returns as an allocation to carry out support programs is analyzed, emphasizing the resources destined for basic grain agriculture. Likewise, scenarios are proposed in relation to the projection of the support granted to this type of producer, which allows determining the prospects of economic benefits to sustain production levels and the well-being of the rural population.