Resources grow for Sader, wins the fertilizer program

For 2023, the federal government has proposed an expenditure budget for the Ministry of Agriculture and Rural Development (It fits) of 70,527.9 million pesos, this is 14,739 million pesos more than what was approved last year, although a growth of 26.30% is observed, not all programs had significant increases.

According to the approved budget, Sader has four of the 16 programs that are projected at the federal level as priorities for the budget year, with the fertilizer support program being the one with the largest budget.

The Agricultural Markets Consulting Group (GCMA) has pointed out that the public spending that will be executed in 2023 in rural development has various challenges to face.

“The first challenge we see is a country stagnant in its growth with high levels of inflation; however, the primary sector continues with its growth trajectory prior to the pandemic and the government decisions that had an unfavorable impact on other economic sectors since 2018”, they point out in their Analysis of the Draft Budget of the Special Concurrent Program for Sustainable Rural Development. 2023.

”The second challenge we see is a growth in rural poverty. The third challenge is the country’s vulnerability to the effects of climate change. The fourth challenge we see is political instability at the global level.”

Specialists consider that Sader should be the secretariat of competitiveness that triggers economic growth, however, the main increases in the budget in the competitiveness aspect are destined to the delivery of direct support in programs that have systematically been poorly evaluated as Guarantee Prices for Basic Food Products and the Fertilizer Program. “The latter has not shown to influence the increase in production in the states where the program operates and has a strong increase in resources.”

They also indicate that in the financial aspect since the beginning of this administration it ceased to be a priority, and given the increase in interest rates as a monetary measure to contain inflation, credit -including agriculture- has had an unfavorable impact on production costs which have been impacted on the final consumer.

With regard to risk management programs – weather coverage and insurance – once again they are not contemplated in the executive’s proposal.

They point out that the subsidies for the capitalization of the production units increased slightly, but they are still insufficient to increase the competitiveness of the various productive links.

PEF 2023

Within Sader’s budget, there are several programs that stand out for their significant increase, among them:

• fertilizers. For the year 2023, coverage will be extended to small-scale producers in six more states, for which it is estimated to support around 2.02 million hectares in 15 states of the country; Campeche, Chiapas, Mexico City, Durango, State of Mexico, Guerrero, Morelos, Nayarit, Oaxaca, Puebla, Quintana Roo, Tabasco, Tlaxcala, Veracruz and Zacatecas, benefiting more than 1.26 million small-scale corn producers, beans, rice and vegetables, crops considered as priority in the different states; of which it is estimated that around 4,000 million pesos will be allocated to the support of small-scale women producers of priority crops in the states of attention.
• Production for Well-being. The objective is to increase the productivity of grains (corn, beans, wheat for bread and/or rice, among others), amaranth, chia, coffee, sugar cane, cocoa, honey and milk for small and medium-scale producers. With the support granted, the program will contribute to increasing the yield of basic grains of small and medium-scale producers of corn, beans and wheat by 10%, benefiting approximately 2 million producers, of which 31% correspond to women. ; It also seeks to grant more than 48.5% of the support to producers located in municipalities with an indigenous population and will ensure support for vulnerable groups, as well as serve those located in the areas of influence of the priority and strategic projects of the federal government (Maya Train, Corridor Interoceanic of the Isthmus of Tehuantepec, etc.).
• Guarantee Prices for Basic Food Products. Its objective is to improve the income of small and medium-sized producers of corn, beans, rice, bread and crystalline wheat, and milk at the national level through the acquisition of their production at a guaranteed price and support in the marketing of their products. The foregoing, through the purchase of basic grains and the payment of incentives to producers of basic grains and milk, the program plans to support 117,118 small and medium producers, of which they will be 60,000 of corn, 25,000 of beans, 2,295 of rice, 4,609 of bread wheat and 2,634 of crystalline wheat, 17,580 of corn from medium producers who receive guaranteed prices; as well as the payment of the stimulus to 5,000 small and medium milk producers.

alba.servin@eleconomista.mx