Analysis of agricultural policy in Mexico: profitability, competitiveness and food self-sufficiency in basic grains.
DOI:
https://doi.org/10.22231/asyd.v22i1.1693Keywords:
comparative advantages, policy Analysis Matrix, private and social prices, public policiesAbstract
Mexico’s entry into the Free Trade Agreement led to the application of contingency measures in the agricultural sector, such as the Direct Support Program for the Countryside (PROCAMPO). This program was designed to promote profitability, competitiveness, and comparative advantages for basic crops. In this regard, this study focused on analyzing the impact of PROCAMPO on rice, bean, maize, and wheat crops in Mexico in 2018, by applying a Policy Analysis Matrix (PAM). Our hypothesis was that PROCAMPO did not generate sufficient comparative advantages; competitiveness and profitability were not promoted to adequately maintain or increase food self-sufficiency in basic grains. In order to corroborate this hypothesis, we applied the PAM; a microeconomic analysis tool that reveals comparative advantages, competitiveness, profitability, and the impact of policies, in terms of market failures related to social and private prices. Results indicate that comparative advantages, competitiveness and profitability exist for crops under irrigation schemes, but in the case of rainfed crops, profitability and competitiveness remained very low and comparative advantages were minimal. We thus conclude that PROCAMPO did not contribute significantly to food self-sufficiency and comparative advantages, although it did prevent farmers from abandoning the production of basic grains. This study highlights the need for more effective policies to improve competitiveness and comparative advantages, especially in the case of rainfed crops.
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