Agricultural Policy Monitoring and Evaluation 2025

11. Costa Rica

Main findings

Support to agriculture

In 2022-24, agricultural support for producers (Producer Support Estimate, PSE) in Costa Rica amounted to 3.5% of gross farm receipts, well below the OECD average of 13% and down from 8% in 2000-02. It mainly takes the form of market price support (MPS), potentially one of the most trade- and production-distorting forms of support. MPS is generated through border measures (tariffs), as well as through domestic reference prices, a policy instrument that was in use until 2022. Products with market price support include pig meat, sugar, poultry meat, and rice. On average, border protection and price interventions raised producer prices by 3% relative to international prices in 2022-24.

Budgetary support to producers represented 0.5% of the 2022-24 gross farm receipts. It is provided mainly in the form of credit at preferential rates for the agricultural sector, support for on-farm services, and subsidies for fixed capital formation directed mainly to small-scale farmers. It also covers payments for environmental services and support to organic production.

Spending on general services (General Services Support Estimate, GSSE) relative to the value of agricultural production in 2022-24 was 1.2%, a small increase from 0.9% in 2000-02. Nevertheless, its share remains well below the OECD average of 3.5%. Most GSSE expenditure in 2022-24 was allocated to the agricultural knowledge and innovation system (particularly extension services), inspection and control, and development and maintenance of infrastructure.

Total support to the sector (Total Support Estimate, TSE) relative to Gross Domestic Product (GDP) declined over time, from 1.2% in 2000-02 to 0.4% in 2022-24, close to the OECD average of 0.5%.

Key recent policy changes

The new National System of Individual Identification and Traceability of Cattle started implementation in August 2024. The system requires the identification and registration of each animal through ear tags and electronic transponders, with an associated digital platform to store the registration information and other relevant data.

Two key assistance measures were approved in 2024 following a national emergency after heavy rainfall linked to a hurricane and a tropical storm: a special fund to provide credit at favourable conditions to micro, small and medium enterprises in the affected regions (including agricultural producers) and an investment for the in-kind provision of agricultural inputs to farmers in the affected areas.

First investments were made in 2024 for a large-scale irrigation project in the province of Guanacaste (one of the driest in the country). The new irrigation service is expected to benefit 18 639 ha and 746 agricultural producers, including large, medium, and small-scale farmers.

Two new trade agreements entered into force: the Trade Association Agreement with Ecuador (in October 2024) and the Comprehensive Economic Partnership Agreement on Trade and Investment with the United Arab Emirates (in April 2025).

Assessment and recommendations

• The newly implemented cattle traceability system is an important step to ensure a sector-wide approach to animal health, sanitary standards, and food safety. The system is also expected to enhance competitiveness by ensuring compliance with export market requirements. Strong engagement from farmers will be key to the success of this initiative. Outreach and training efforts should continue to promote sector-wide understanding and participation. Targeted assistance (including financial and technical support) will be essential to facilitate the integration of small farmers into the system and address compliance challenges.

• Costa Rica has made efforts to integrate sustainability considerations into its trade policy and to mitigate the GHG emissions of key export sectors. At the same time, significant agri-environmental challenges remain, with some agri-environmental indicators substantially above the OECD average. Progressing in the implementation of Nationally Appropriate Mitigation Actions (NAMAs) for other agricultural activities, continuing to promote the adoption of good agricultural practices, and promoting an efficient use of water will improve the environmental performance of the sector.

• The last decade saw a decrease in agricultural productivity and only a small increase in agricultural output. Improving the agricultural innovation system can help spur growth. Doing this requires prioritising public interventions in the updated Sectoral Plan 2023-2027, along with adequate monitoring and oversight, which will be key to ensure that resources are allocated effectively and that the policy actions help promote sustainable productivity growth.

• Despite recent increases, support to general services and investments in the innovation system relative to the size of the sector continue to be below the OECD average. Strengthening public investment and creating incentives for private investment in innovation and knowledge transfer will remain essential for improving the sector’s productivity and addressing environmental concerns.

Development of support to agriculture

Table 11.1. Costa Rica: Estimates of support to agriculture

Million USD

.	2000-02	2022-24	2022	2023	2024p
Total value of production (at farm gate)	2 205	6 483	5 565	6 745	7 139
of which: share of MPS commodities (%)	79.20	81.93	85.41	80.34	80.02
Total value of consumption (at farm gate)	1 112	2 822	2 379	3 100	2 986
Producer Support Estimate (PSE)	174	235	113	240	354
Support based on commodity output	163	200	88	199	312
Market price support¹	163	200	88	199	312
Positive market price support	163	200	88	199	312
Negative market price support	0	0	0	0	0
Payments based on output	0	0	0	0	0
Payments based on input use	10	34	23	39	40
Based on variable input use	4	16	9	20	20
with input constraints	1	16	9	20	20
Based on fixed capital formation	1	7	6	8	8
with input constraints	0	1	1	1	1
Based on on-farm services	5	11	9	11	12
with input constraints	3	0	0	0	0
Payments based on current A/An/R/I, production required	0	0	0	0	0
Based on Receipts / Income	0	0	0	0	0
Based on Area planted / Animal numbers	0	0	0	0	0
with input constraints	0	0	0	0	0
Payments based on non-current A/An/R/I, production required	0	0	0	0	0
Payments based on non-current A/An/R/I, production not required	0	0	0	0	0
With variable payment rates	0	0	0	0	0
with commodity exceptions	0	0	0	0	0
With fixed payment rates	0	0	0	0	0
with commodity exceptions	0	0	0	0	0
Payments based on non-commodity criteria	1	2	1	2	2
Based on long-term resource retirement	0	2	1	2	2
Based on a specific non-commodity output	0	0	0	0	0
Based on other non-commodity criteria	1	0	0	0	0
Miscellaneous payments	0	0	0	0	0
Percentage PSE (%)	7.90	3.50	2.01	3.54	4.92
Producer NPC (coeff.)	1.08	1.03	1.02	1.03	1.03
Producer NAC (coeff.)	1.09	1.04	1.02	1.04	1.05
General Services Support Estimate (GSSE)	20	79	66	81	90
Agricultural knowledge and innovation system	10	28	25	28	30
Inspection and control	3	25	22	26	28
Development and maintenance of infrastructure	7	25	18	26	31
Marketing and promotion	0	1	1	1	1
Cost of public stockholding	0	0	0	0	0
Miscellaneous	0	0	0	0	0
Percentage GSSE (% of TSE)	10.47	25.68	36.92	25.28	20.31
Consumer Support Estimate (CSE)	-189	-179	-99	-216	-222
Transfers to producers from consumers	-155	-145	-74	-181	-182
Other transfers from consumers	-33	-33	-25	-36	-40
Transfers to consumers from taxpayers	0	0	0	0	0
Excess feed cost	0	0	0	0	0
Percentage CSE (%)	-16.93	-6.21	-4.14	-6.98	-7.42
Consumer NPC (coeff.)	1.20	1.07	1.04	1.08	1.08
Consumer NAC (coeff.)	1.20	1.07	1.04	1.08	1.08
Total Support Estimate (TSE)	195	314	178	321	444
Transfers from consumers	189	179	99	216	222
Transfers from taxpayers	40	169	105	140	262
Budget revenues	-33	-33	-25	-36	-40
Percentage TSE (% of GDP)	1.23	0.37	0.26	0.37	0.47
Total Budgetary Support Estimate (TBSE)	31	115	91	122	132
Percentage TBSE (% of GDP)	0.20	0.14	0.13	0.14	0.14
GDP deflator (2000-02 = 100)	100	385	385	385	384
Exchange rate (national currency per USD)	332.29	568.77	647.14	544.05	515.11

Note: p: provisional. NPC: Nominal Protection Coefficient. NAC: Nominal Assistance Coefficient. A/An/R/I: Area planted/Animal numbers/Receipts/Income. 1. Market Price Support (MPS) is net of producer levies and excess feed cost. MPS commodities for Costa Rica are: rice, sugar, milk, beef and veal, pig meat, poultry, bananas, coffee, palm oil and pineapple.

Source: OECD (2025), “Producer and Consumer Support Estimates”, OECD Agricultural policy monitoring (database), https://data-explorer.oecd.org/.

Policy landscape

Main policy instruments

General policy direction

The main policy guidance for the sector comes from the Public Policy for the Agricultural Sector 2023‑32. The policy includes actions oriented to increase the sector’s productivity, sustainability, resilience, and adaptation to climate change, to improve the international competitiveness of Costa Rican products, create employment and improve living conditions in rural areas (Ministerio de Agricultura y Ganadería, 2023[1]). It has four major action areas: modernising and strengthening the public institutions governing the sector and improving their co-ordination; improving competitiveness; improving productivity and sustainability; and improving value added and marketing channels.

The current roadmap for the policy’s implementation is provided by the Sectoral Plan of the Public Policy for the Costa Rican Agricultural Sector 2023-27, which outlines specific interventions for the first five-year period of the policy (see below).

The National Plan for Territorial Rural Development 2024-30 was updated in 2024. This plan, while recognising that rural development goes beyond agriculture, includes actions to support the agro-food sector. They include agricultural extension programmes, training in new technologies and sustainable practices, support services for local businesses, and the promotion of family farming.

The National Seed Policy for 2017-30 is implemented by the National Seed Office with the participation of stakeholders from the seed production sector. Actions include developing new seed varieties, promoting the local production and export of seeds and the transfer of knowledge, and ensuring security in the seed supply.

Market and trade policies

Costa Rica uses border measures, including tariffs and sanitary and phytosanitary (SPS) measures, on imports of agricultural goods. The average applied most-favoured-nation (MFN) tariff on agricultural imports in 2024 was 11.5%, above the 4.6% faced by non-agricultural products. Certain sectors face significantly higher MFN average rates, such as dairy (45.6%), animal products (20.8%) and sugars (18.9%) (World Trade Organization, 2024[2]). Relevant reforms took place in 2022 with the elimination of the reference price and the reduction of import tariffs for rice.

Costa Rica has entered into 18 regional trade agreements (RTAs) with 54 trading partners1 across the world. An additional trade agreement was signed in 2024 but is not yet in force. Most of Costa Rica’s trade is conducted under these agreements, and RTA partners are particularly important for agro-food trade. In 2021-23, RTA partners accounted for 95% of Costa Rica’s agro-food exports and 88% of imports, compared with 94% of exports and 86% of imports for all goods (WITS, 2025[3]).

A programme for agricultural export promotion (DESCUBRE) links farmers to export markets and value chains and promotes investments in rural and coastal areas. Its activities include providing seed capital and technical assistance to help small producers become providers of exporting companies in selected agro-food value chains.

Budgetary and financial instruments

Budgetary policy instruments focus on providing general services to agriculture, including extension services, research and development (R&D), and plant and animal health services, with a significant emphasis on agri-environmental commitments. Farmers receive specific payments and subsidies, including implicit subsidies through credit at preferential interest rates, and some subsidies for fixed capital formation mostly directed to small-scale farmers.

The Institutional Supply Program (Programa de Abastecimiento Institucional – PAI), managed by the National Production Council (CNP) procures food from micro, small and medium-sized producers and agribusinesses for consumption in public entities (e.g. school cafeterias, hospitals and prisons).

The National Institute for Innovation and Transfer of Agricultural Technology (INTA) manages agricultural research, development and innovation. Together with the MAG’s National Directorate of Agricultural Extension (DNEA), INTA also operates technology transfer and extension services to farmers. The National Animal and Health Service (SENASA) and the National Phytosanitary Service (SFE) are in charge of animal and plant health services.

Agri-environmental policies

The Payment for Environmental Services programme, managed by the National Forest Financing Fund (FONAFIFO), provides financial compensation to small and medium-sized agricultural or livestock producers who plant trees interspersed with crops or pastures. This helps to maintain, recover, and develop forest ecosystems, increase carbon sequestration, improve the rural landscape and the environmental conditions of cattle farms, and generate additional economic resources through the sale of wood from the trees planted.

The Recognition of Benefits for Good Agricultural and Livestock Practices programme grants a monetary incentive to agricultural producers, covering 20% to 30% of investments with a positive environmental effect, such as hedgerows, fodder banks, biodigesters, or organic waste-treatment systems. The Recognition of Organic Environmental Benefits programme provides direct payments to producers that are certified organic or in transition, provided as a base amount per year for a maximum of three years. These programmes are managed by the MAG.

Irrigation policies are managed by the National Groundwater, Irrigation and Drainage Service (SENARA), which builds and manages irrigation infrastructure. This agency carries out construction works for drainage and flood control in the regions with the highest levels of rainfall, manages groundwater resources, generates information on the availability, quantity, quality, and vulnerability of water in Costa Rica’s aquifers, and provides training and assistance to producers for the proper use of water resources.

The Ecological Blue Flag (Bandera Azul) for the agricultural sector is a voluntary programme that recognises farmers who implement practices in areas such as water management, soil conservation, consumption of agricultural inputs, fossil fuels and electricity, and actions to improve climate adaptation and resilience.

Climate change mitigation and adaptation

Costa Rica has committed to a decarbonised economy with net-zero emissions in 2050 and established a goal for reducing greenhouse gas (GHG) emissions. The overall goal has two sub-targets: (1) maximum 9.11 MtCO₂eq net emissions by 2030; and (2) maximum net emissions budget of 106.53 MtCO₂eq in the period 2021-30.2 While agriculture contributes almost 21% to overall GHG emissions, nearly twice the OECD average, the country does not have an agriculture-specific target.

Nationally Appropriate Mitigation Actions (NAMAs) for agriculture have been developed in collaboration with public institutions, producer organisations, the private sector and academia, supported by international co-operation funds. These public-private partnerships seek to implement actions along the production chains of key agricultural products to reduce GHG emissions and promote sustainable practices. Currently, two agricultural NAMAs are in the scale-up phase for coffee and livestock. Costa Rica registered three additional NAMAs the United Nations Framework Convention on Climate Change (UNFCCC) for sugarcane, musaceae (e.g. bananas and plantain), and rice. The NAMA for sugarcane is at the start of its pilot phase, while the latter two are at the pre-pilot phase. Their scaling up is dependent on the availability of international co-operation funding.

A Plan for Adapting the Agricultural and Rural Sector to Climate Change (PASAR) 2022-26 entered the final stage of preparation in 2025. The PASAR is part of the National Climate Change Adaptation Plan 2022-26 and is a commitment in Costa Rica's Nationally Determined Contribution (NDC) 2020. Adaptation actions are also implemented through the existing institutions and programmes in areas such as water management and the development of seed varieties.

Policies for trade and sustainability in agro-food markets

Costa Rica has an environmental co-operation provision with explicit linkages to agriculture in its Free Trade Agreement with the People’s Republic of China (in force since 2011). The agreement’s article on agricultural co-operation (Article 123) provides that both parties shall co-operate to develop technologies for agriculture and livestock production of higher quality and lower environmental impact, promote risk management in the agribusiness chains aiming to incorporate measures for climate change adaptation and mitigation, and transfer knowledge, technology and information for sustainable soil management, among other areas (Frezal and Deuss, 2025[4]).

More recently, Costa Rica signed the Agreement on Climate Change, Trade and Sustainability (ACCTS) in November 2024 along with New Zealand, Iceland, and Switzerland. The ACCTS is a new type of agreement that uses legally binding trade rules to promote the contribution of trade to address climate change and other environmental challenges. It includes provisions for the liberalisation of trade in a list of environmental goods and services − including some services related to sustainable agriculture − disciplines on fossil fuel subsidies, and non-binding guidelines to strengthen the quality and comparability of voluntary ecolabels for goods and services.

At the World Trade Organization, Costa Rica is a co-convener (with Canada) of the Trade and Environmental Sustainability Structured Discussions (TESSD), an initiative launched in November 2020 to advance discussions at the intersection of trade and the environment. These discussions have covered sustainable food and agriculture, among other topics (Frezal and Deuss, 2025[4]).

Given the importance of agro-food exports for Costa Rica, domestic actions to mitigate agricultural GHG emissions are often linked to efforts to promote trade, particularly to meet the sustainability requirements of trading partners and improve access to international markets. In this context, public-private partnerships such as the NAMAs for coffee and livestock consider this trade and market access dimension. Improving access for Costa Rican products in global markets has been an important driver for producers to push their sectors to innovate and become more sustainable (Roosendaal et al., 2021[5]), leading the private sector to work in partnership with the government. Costa Rica is also preparing a broader country strategy for sustainable agro-landscapes with the aim of developing a national standard and country brand to differentiate carbon-neutral and zero deforestation agricultural products in international markets.

The NAMA-livestock is part of a national project that implements the policy actions defined in the National Strategy for Low Carbon Livestock. The NAMA-livestock, like the other NAMAs registered at the UNFCCC, has a Measuring, Reporting and Verification (MRV) methodology for monitoring and quantifying GHG emissions and carbon sequestration on livestock farms, in place since 2019. The estimates cover the farms registered in the system that apply mitigation technologies. In 2024, 2 700 farms, or about 10% of all livestock farms in Costa Rica, were registered in the NAMA. Of these, 356 farms reported information to the MRV system (FAO, 2024[6]).

Recent policy developments

Domestic policy developments in 2024-25

Regulatory and sector management developments

The Sectoral Plan 2023-2027 was updated in October 2024. It guides the operation of the Public Policy for the Costa Rican Agricultural Sector 2023-32 in its first five years of implementation. The plan contains 55 public interventions that will be monitored through a list of 111 indicators. The estimated five-year budget for the policy interventions to be implemented by the different institutions governing the sector is CRC 313 billion (USD 608 million) (Secretaría Ejecutiva de Planificación Sectorial Agropecuaria, 2024[7]).

The National System of Individual Identification and Traceability of Cattle was launched in January and began implementation in August 2024 (OECD, 2024[8]). It requires each animal to be registered and identified through visual and electronic means (ear tags and electronic transponders) on an associated digital platform (Trazar-Agro) which stores the registration information and other relevant data. Implementation efforts in 2024 included training about the use of the system to producers and to staff of the National Training Institute (INA), in charge of vocational education.

Agriculture in Costa Rica relies heavily on migrant workers. Two measures were launched in May 2024 to facilitate their employment and protect their labour rights. The General Protocol for the attention of labour migration during the agricultural harvest season simplifies procedures for entry, stay and return of temporary migrants from Nicaragua and Panama. An exceptional regime (Special Category) was also established to help some temporary agricultural workers regularise their situation, giving them the right to remain in the country for two years (Ministerio de Agricultura y Ganadería, 2024[9]).

Support to producers

Two key assistance measures were approved following a declaration of national emergency after heavy rainfall linked to a hurricane and a tropical storm in 2024 saturated soils and caused floods and landslides in many regions. A special fund of CRC 5 billion (USD 10 million) was opened through the Development Banking System (SBD) to provide credit at favourable conditions to micro, small and medium enterprises in the affected regions, including agricultural producers. In addition, an investment plan of CRC 5.5 billion (USD 11 million) was prepared for the in-kind provision of agricultural inputs (such as feeds and fertilisers) to crop and livestock farmers in the affected areas.

In the framework of the Institutional Supply Program (PAI), the National Production Council (CNP) provided training and workshops to 256 women to become suppliers of agro-food products for this public procurement programme.

Animal and plant health and food safety

A new measure on maximum levels of chemical contaminants allowed in products of animal origin for human consumption has been in force since June 2024. It includes additional reference standards that can be applied in absence of national regulation. That is, if no national regulation exists, the National Animal Health Service (SENASA) will apply the maximum limits of chemical contaminants established by other agencies, in the following order: the Codex Alimentarius, the United States Food and Drug Administration (FDA), the US Environmental Protection Agency (EPA) and the European Union (EU).

SENASA also improved its public health and veterinary health surveillance and control processes and doubled the budget for laboratory tests and trials from CRC 7 million to CRC 15 million (USD 29 000). This investment allows for the use of improved testing techniques for the detection of antimicrobial resistance in healthy pigs. These tests help SENASA carry out joint actions with producers to guarantee the safety of pork products, improve the use and administration of antimicrobials, and register new products.

A new SENASA resolution sets out labelling requirements for products, by-products or animal derivatives intended for human or animal consumption. It requires that the packaging material of these products includes information that identifies the establishment of origin or, if more than one establishment was involved, the last establishment that participated in the processing or packaging of the product. This measure is in force since April 2024.

Policies to mitigate emissions and facilitate climate change adaptation in agriculture

A total of 408 “NAMA farms” (287 in livestock and 121 in coffee production) received financial support, technical assistance and training in 2024. The amount of mitigation achieved by both Nationally Appropriate Mitigation Actions (NAMAs) in 2024 was 42 221 tCO₂eq. Support to the NAMA farms also included the in-kind provision of inputs such as electric fencing systems, water pumping and distribution systems, and fertigation systems to promote technological change in livestock farms (Ministerio de Agricultura y Ganadería, 2025[10]).

First investments were made in the new Water Supply System for the Middle Basin of the Tempisque River and Coastal Communities (PAACUME) in 2024. This large-scale project aims to guarantee water for human consumption and irrigation in the province of Guanacaste, one of the driest in the country. It includes irrigation canals, water treatment and distribution, groundwater monitoring, automating the Arenal Tempisque Irrigation District (DRAT) system, and environmental management. The irrigation service is estimated to benefit 18 639 ha and 746 agricultural producers, including large, medium, and small-scale farmers.

The INTA continues to work on the search for genetic material that adapts to climatic variations. To this end, it intensified the evaluation of a variety of genetic materials in areas of the country with different climates. In collaboration with the University of Costa Rica (UCR) and the International Center for Tropical Agriculture (CIAT), INTA also developed a new variety of red bean named Quiribrí, which was introduced in December 2024. The Quiribrí variety is resistant to several diseases affecting the crop, such as the bean golden mosaic virus.

Trade policy developments in 2024-25

Two new trade agreements entered into force: the Trade Association Agreement between Costa Rica and Ecuador (in October) and the Comprehensive Economic Partnership Agreement on Trade and Investment with the United Arab Emirates (in April 2025), Costa Rica’s first trade agreement with a Middle East country. In addition, the Agreement on Climate Change, Trade and Sustainability (ACCTS) with New Zealand, Iceland, and Switzerland, was signed in November 2024.

A temporary tariff reduction for a staple food was approved in 2024. This allowed for the duty-free import of 6 260 tonnes of black and red beans between October 2024 and January 2025 to prevent their shortage in the domestic market.

Policy context

Key economic and agricultural statistics

Costa Rica is a small country with a population of 5.1 million. Its long democratic tradition and political stability have underpinned its economic progress and the development of its agricultural sector. Agriculture still plays a relatively important role in the economy, contributing 10% to employment. While the share of agriculture in GDP is slightly above the average of all countries covered in this report (“all countries”), it has more than halved since 2000, reflecting the diversification of the economy. Costa Rica’s GDP per capita more than tripled between 2000 and 2023 and is close to the average across all countries (Table 11.2).

Table 11.2. Costa Rica: Contextual indicators

	Costa Rica		International comparison
	2000*	2023*	2000*	2023*
Economic context			Share in total of all countries
GDP (billion USD in PPPs)	32	144	0.08%	0.09%
Population (million)	4	5	0.09%	0.10%
Land area (thousand km2)	51	51	0.06%	0.06%
Agricultural area (AA) (thousand ha)	1 840	1 769	0.06%	0.06%
			All countries1
Population density (inhabitants/km2)	77	100	52	64
GDP per capita (USD in PPPs)	7 879	28 112	9 368	29 013
Trade as % of GDP	38.2	23.5	12.3	14.9
Agriculture in the economy			All countries1
Agriculture in GDP (%)	10.2	4.1	2.9	3.5
Agriculture share in employment (%)	16.6	10.5	-	-
Agro-food exports (% of total exports)	31.0	33.1	6.4	8.1
Agro-food imports (% of total imports)	7.6	13.3	5.8	7.3
Characteristics of the agricultural sector			All countries1
Crop in total agricultural production (%)	76.2	73.6	-	-
Livestock in total agricultural production (%)	23.8	26.4	-	-
Share of arable land in AA (%)	11.4	11.0	31.8	33.3

Note: *or closest available year.

1. Average of all countries covered in this report.

Sources: OECD statistical databases; International Labour Organisation (ILO); UN Comtrade; World Bank, WDI; FAO database and national data.

After a marked recovery in 2021 from the economic contraction associated with the COVID-19 pandemic, real GDP growth stabilised at 4–5% over 2022-24, slightly above the rates observed in the pre-pandemic period. Unemployment has declined continually since peaking in 2020 and, at 7% in 2024, is now around its pre-COVID-19 levels. While inflation significantly increased to reach 8% in 2022, it sharply receded in 2023 and became negative in 2024 (Figure 11.4). Drivers of this rapid fall in inflation include a strong appreciation of the exchange rate to the US dollar, a reduction in imported commodity prices and modest domestic inflationary pressures (OECD, 2023[11]).

Costa Rica is a net exporter of agro-food products, which accounted for 33% of the 2023 value of its total exports of goods. Forty-four per cent of Costa Rica’s agricultural exports are primary crops for final consumption, such as bananas and pineapples, while 35% of exports are processed products for final consumption. Products for final consumption covered 56% of agro-food imports (Figure 11.5B).

The estimated agricultural Total Factor Productivity (TFP) decreased by 1.4% per year during 2013-22. The output growth of 0.2% p.a. between 2013 and 2022 resulted from the increasing use of primary factors (capital, labour and land) and, to a lesser extent, variable inputs (Figure 11.6). The factors contributing to this TFP decline include area expansion into less productive land, ongoing farm fragmentation, and limited financial and physical infrastructure.

In the last two decades, there have been improvements in some of Costa Rica’s agri-environmental indicators such as the sector’s share in total energy use and its contribution to GHG emissions (Table 11.3). However, agricultural emissions still account for 20% of the country’s total GHG emissions, over twice the OECD average. Moreover, the phosphorus balance is almost eight times the OECD average. Agriculture is the main user of water resources, accounting for almost two-thirds of total freshwater abstractions, also well above average.

Table 11.3. Costa Rica: Productivity and environmental indicators

	Costa Rica		International comparison
	1991-2000	2013-2022	1991-2000	2013-2022
			World
TFP annual growth rate (%)	1.1%	-1.4%	1.7%	0.8%
			OECD average
Environmental indicators	2000*	2023*	2000*	2023*
Nitrogen balance, kg/ha	..	27.1	32.0	29.7
Phosphorus balance, kg/ha	..	19.2	3.3	2.5
Agriculture share of total energy use (%)	6.6	2.5	1.7	2.0
Agriculture share of GHG emissions (%)	29.2	20.5	8.7	10.1
Share of irrigated land in AA (%)	5.6	8.8	-	-
Share of agriculture in water abstractions (%)	32.5	63.2	47.0	49.5
Water stress indicator	..	3.7	8.7	..

Note: * or closest available year.

Sources: USDA Economic Research Service, Agricultural Productivity database; OECD statistical databases; FAO database and national data.

Historical trends in agricultural policies

Costa Rica’s agricultural policy has developed in three phases (Table 11.4). Up to the 1980s, the country pursued import substitution, supported by government market interventions and capitalising on its natural comparative advantages through the export of traditional products such as coffee, bananas, sugar, and bovine meat.

Between the mid-1980s and the mid-2000s, Costa Rica followed an outward-oriented growth strategy, which influenced the development of agricultural support policies. Market intervention decreased significantly, combined with continued domestic reforms and trade liberalisation, marked by Costa Rica’s accession to the General Agreement on Tariffs and Trade (GATT) in 1990 and, subsequently, to the World Trade Organization (WTO) in 1995. Price controls were eliminated (except for rice), export taxes removed and import tariffs lowered. Costa Rica entered into free trade agreements that granted duty-free treatment for imports from many trading partners, although relatively high tariffs still apply to some agricultural products.

The food price crisis of 2007-08 fuelled food security concerns, leading to the establishment of programmes seeking to increase productivity of staple foods, particularly through extension services targeting small-scale farmers. The administered price for rice that had been maintained for decades was reformed in 2015 and converted to a minimum reference price, which was eliminated in 2022 as part of a policy reform package that also included tariff reductions on rice imports. Costa Rica’s policies continue to emphasise export-oriented agriculture, which has resulted in asymmetries between exporters and producers oriented to the local market. At the same time, greater policy focus is now directed at promoting sustainable productivity with an emphasis on small-scale farmers.

Table 11.4. Costa Rica: Agricultural policy trends

Period	Framework	Changes in agricultural policies
Prior to 1980s	Closed economy	Import substitution approach; price interventions on agricultural products, particular emphasis on guaranteed price for rice; high tariffs on agricultural imports Creation of the National Production Council (CNP) in the 1940s to promote agricultural and industrial production, control agricultural prices and own public infrastructure for the collection, storage, transport and distribution of grains
1980s-2007/08	Gradual shifts to open the economy	Dismantling price interventions (but minimum price for rice continued) Reduction of trade barriers (import and export tariffs) Reforms to CNP end most functions, keeping only the Institutional Supply Programme (PAI), which purchases food from small and medium farms for consumption in public institutions Strengthening agricultural exports via product diversification and development of destination markets; several FTAs signed; incentives (including in agriculture) to domestic and foreign companies to attract FDI, such as the Free Trade Zone Regime (FTZ) providing tax benefits and preferential port rates Creation of agricultural institutions for animal health (SENASA), plant health (SFE), agricultural innovation (INTA) Creation of the Rural Development Institute (IDA/INDER)
Since 2008	Open economy with a focus on sustainability and small-scale farmers	Emphasis on extension services for small-scale farms; promotion of good agricultural practices Small payments to farmers for environmental services Import tariffs persist for some agricultural products Major rice policy reforms in 2022: elimination of the reference price and lower tariffs

Producer support has fluctuated between 2% and 11% of gross farm receipts since 1995, with a peak reached in 2011. This volatility can be partly explained by fluctuations in export and import unit values or in the international reference prices for some MPS commodities. Over 80% of Costa Rica’s PSE consists of market price support (MPS). Traditionally, MPS concentrated on rice, poultry, pig meat and sugar, but the share of rice in total MPS has decreased in recent years. In contrast, budgetary support to producers is limited and has changed little over time (Figure 11.7). Around 70% of total budgetary allocations are in the form of general services to the sector. Agricultural research and development (R&D), extension services, inspection and control, and rural infrastructure account for most of these expenditures. Costa Rica does not provide budgetary transfers to consumers.

References

[6] FAO (2024), Revisión del sistema de medición, notificación y verificación: Apoyar las medidas de mitigación apropiadas para la ganadería en Costa Rica. Resumen técnico., FAO, https://doi.org/10.4060/cd0958es.

[4] Frezal, C. and A. Deuss (2025), “Trade-related measures linked to the environmental sustainability of agriculture: A stocktake and typology”, OECD Food, Agriculture and Fisheries Papers, No. 216, OECD Publishing, Paris, https://doi.org/10.1787/ebfdca09-en.

[10] Ministerio de Agricultura y Ganadería (2025), Impulso a la NAMA Ganadería: MAG entrega insumos destinados a impulsar el cambio tecnológico en fincas ganaderas del país (press release), https://prensamag.blogspot.com/2025/01/impulso-la-nama-ganaderia-mag-entrega.html.

[9] Ministerio de Agricultura y Ganadería (2024), Trámites simplificados y beneficios extendidos: La apuesta del Gobierno para impulsar el trabajo migrante en el Sector Agro (press release), https://prensamag.blogspot.com/2024/05/tramites-simplificados-y-beneficios.html.

[1] Ministerio de Agricultura y Ganadería (2023), Política pública para el sector agropecuario costarricense, http://www.mag.go.cr/bibliotecavirtual/E14-11132.pdf.

[8] OECD (2024), Agricultural Policy Monitoring and Evaluation 2024: Innovation for Sustainable Productivity Growth, OECD Publishing, Paris, https://doi.org/10.1787/74da57ed-en.

[11] OECD (2023), OECD Economic Outlook, Volume 2023 Issue 2, OECD Publishing, Paris, https://doi.org/10.1787/7a5f73ce-en.

[5] Roosendaal, L. et al. (2021), Costa Rica’s journey towards sustainable food systems, FAO, https://doi.org/10.4060/cb5997en.

[7] Secretaría Ejecutiva de Planificación Sectorial Agropecuaria (2024), Plan Sectorial de la Política Pública para el Sector Agropecuario Costarricense 2023-2032 I Quinquenio (2023-2027), https://faolex.fao.org/docs/pdf/cos232173.pdf.

[3] WITS (2025), UN Comtrade by country period [database].

[2] World Trade Organization (2024), World Tariff Profiles 2024: Costa Rica, https://www.wto.org/english/res_e/statis_e/daily_update_e/tariff_profiles/CR_E.pdf.

Notes

← 1.  Members of the trading blocs that have entered into RTAs with Costa Rica − the European Union, the European Free Trade Area (EFTA), and the Caribbean Community (CARICOM) − are considered individually. The number includes only the five CARICOM member states for which the trade agreement is in force.

← 2.  Costa Rica's contribution does not consider a comparative benchmark. Therefore, the target is not relative to a starting or reference year.