Battlefield

Nearly 100 years passed in different acronyms; with intense activity to be accredited as the main financial support for rural, agricultural, forestry and fishing programs. Today, with a stroke of the pen and with a suspicious vote of the legislators, the financial lender in these branches has succumbed to the “austericide” to which the Mexican state has submitted. In addition to the previous action in favor of Franciscan poverty, the argument of looting that oscillates in accusations from one side to the other is added; as if the rapacious robbery of one side or the other were enough to surrender the market and leave without coverage a huge number of small producers who have depended heavily on the financing granted through the channel that is now extinguished.

But the extinction action has consequences that are not yet visible even when the credit from the Financial ceased to be granted since last December 2022. The field, underlined, finds a suffocating scenario; Primary activities or transformation activities must now find economic support for their operation in some alternative way. With this, small and medium producers are already forced, at present, to seek some private financing that generally falls into usury, fraud and coyote. As time goes by, many rural producers will find themselves trapped in insolvency and many others will give up their jobs to end the work that could have sustained the lives of several of their generations.

Even though from the highest circle of federal power, this situation has been taken lightly, in a scenario of labor and economic astringency, “direct support” is not an effective way to support productivity due to its selectivity and periodicity . In addition, it has been announced that a complementary measure in favor of the economy of rural producers will be the establishment of a price control system that will add positively to the peasant, it has also proven that it is not an effective way in the face of the failure they found a couple of attempts announced within this same six-year term, on the occasion of stopping the inflationary phenomenon.

The truth is that something has gone terribly wrong in the stretch from 2018 to date. Only in that period, the overdue portfolio of the Financial increased by 67%, going from 4,900 million pesos to a little more than 8,200. Likewise, the delinquency rate jumped from 7.9% to 25.9% and the financial company’s total assets fell from 39,000 million to nearly 30,000 million pesos. Faced with a scenario like this, where for whatever reason said entity has become unviable, what alternative, real and favorable path do those who depended entirely on financing to subsist producing have? Let’s remove political dogmas and appeal to strict reasoning; Is there such a way?

Twitter: @gdeloya