Agricultural Policy Monitoring and Evaluation 2025

20. Mexico

Main findings

Support to agriculture

Agricultural support in Mexico, as measured by the Producer Support Estimate (PSE) was equal to 11.9% of gross farm receipts in 2022-24, down from 25.2% in 2000-02 and slightly below the OECD average (13.2% in 2022-24). Market Price Support (MPS), as a percentage of gross farm receipts, decreased over the past 20 years from 17.7% in 2000-02 to 6.9% in 2022-24, mostly due to trade liberalisation and domestic policy reforms. On average, domestic prices are 7% higher than border reference prices. MPS is also the main component of Single Commodity Transfers (SCT), which are highest for sugar, rice, barley, beans and wheat.

In the period 2022-24, payments based on input use (fertilisers and electricity) and land represented 90% of total budgetary transfers to producers and are mostly targeted to small-scale farmers, although the electricity subsidy to pump water reaches all types of farmers. Other payments include land-based support for the production of staple crops by subsistence farmers and the payment scheme based on area for afforestation and agroforestry.

General services expenditures (General Service Support Estimate, GSSE) equalled 1.7% of agriculture’s value of production in 2022-24, less than half the OECD average (3.5%). Most of those expenditures focus on the development and maintenance of infrastructure and agricultural knowledge and innovation. Total support to agriculture in Mexico was 0.7% of Gross Domestic Product (GDP) in 2022-2024.

Key recent policy changes

A new government took power in October 2024, and the National Development Plan (NDP) has been developed for the period 2024-30 (SADER, 2025[1]). The main goal of the NDP is to foster a productive, inclusive, and sustainable agricultural sector. Agricultural policy instruments continue to focus on distributing resources equitably and paying special attention to gender equality, indigenous populations, and vulnerable groups.

In 2025, the Mexican Soil Alliance developed a National Soil Restoration Programme to rehabilitate degraded soils, aiming to restore 25% of the eroded area. Actions by this Soil Alliance include management practices for soil cover and organic matter, as well as practices to reduce soil loss. An app (BioParcela APP) was created in 2025, for technicians and producers to allow agricultural producers to georeference their properties and keep an electronic record of all their productive activities, including actions related to sustainability, such as soil conservation, water management, and use of pesticides, among others; which is intended to be used for reporting (SADER, 2025[1]).

In 2025, SEGALMEX was dismantled, the company oversaw state procurement of staple foods and the price-setting mechanism for small-scale farmers. These functions are now being carried out by DICONSA (SADER, 2025[1]).

Assessment and recommendations

• Mexico has made significant efforts to reorient its budgetary support towards tailored and targeted producer payments for vulnerable populations, in line with previous OECD recommendations. This includes the area-based Production for Wellbeing programme, the Fertiliser for Wellbeing Programme, and the Sowing Life Programme.

• However, more can be done to ensure that these programmes deliver on their sustainability objectives. For example, the Fertiliser for Wellbeing Programme should be complemented with more training on good agricultural practices at the national level and include a systematic analysis of soil characteristics and nutrient requirements before distributing fertilisers.

• Moreover, the government should ensure, by adding environmental conditions, that the Sowing Life Programme does not incentivise farmers to deforest their land to become beneficiaries of the programme, and integrate complementary payments for environmental services to preserve existing forests.

• Developing a zoning system that identifies land use based on agroclimatic zones and soil fertility characteristics can help improve the efficiency of the above-mentioned programmes.

• Supporting producer organisations (e.g. co-operatives) and improving access for small-scale producers to output and input markets (including improved seeds) could help overcome barriers related to scale for smaller farmers.

• Electricity subsidies for water pumping, which incentivise excessive water use, need to be reformed. And water management programmes should be reconsidered to better prepare for the future of sustainable agriculture. Water pricing has been used successfully in many countries to ensure the sustainable use of water; Mexico could draw from this experience.

• Sustainable agricultural practices, for both domestic and international markets, should be encouraged and scaled up the existing ones, for example by continuing to promote (via technical assistance) climate-smart, zero till, crop diversification, reforestation, water management, and soil recovery practices, building on traditional knowledge and taking an outcome-based approach.

• Several of Mexico’s Regional Trade Agreements (RTAs) include environment-related provisions (ERPs). The country could make better use of these provisions by exchanging knowledge and capacity building on sustainable practices, as well as including more of them in other RTAs, to transition to a more sustainable agriculture via the adoption of low-emission technologies.

• Mexico’s agriculture would benefit from larger public investments in general services, including climate-smart infrastructure such as price and weather information systems, and rural and agricultural infrastructure, particularly for water management.

• The national adaptation guidelines for agriculture are aligned with good adaptation practices. However, more detailed and concrete actions embedded in the country’s agricultural policy instruments can be developed to strengthen the resilience of the sector and its adaptation to climate change. Moreover, better climate-change adaptation information at a farm level, such as adaptation actions, could help with assessing the impact of policies.

• Additional actions are needed to achieve the GHG emission reduction target for agriculture, as existing support and financing for increased use of bio-digesters in livestock farms and for conserving and restoring grasslands are insufficient to deliver the needed results.

Development of support to agriculture

Table 20.1. Mexico: Estimates of support to agriculture

Million USD

	1991-93	2000-02	2022-24	2022	2023	2024p
Total value of production (at farm gate)	28 123	31 350	83 329	73 151	87 181	89 654
of which: share of MPS commodities (%)	68.31	66.28	62.39	62.84	62.15	62.20
Total value of consumption (at farm gate)	28 207	34 367	92 339	75 693	126 385	74 939
Producer Support Estimate (PSE)	9 148	8 541	10 335	5 023	11 186	14 796
Support based on commodity output	7 701	6 283	6 043	1 859	6 438	9 831
Market price support¹	7 649	5 969	5 922	1 790	6 337	9 639
Positive market price support	7 696	6 000	6 129	1 790	6 396	10 202
Negative market price support	-47	-32	-207	0	-59	-563
Payments based on output	52	315	121	69	101	192
Payments based on input use	1 444	953	1 647	1 084	1 908	1 950
Based on variable input use	747	350	1 272	746	1 520	1 550
with input constraints	0	0	0	0	0	0
Based on fixed capital formation	545	362	203	192	213	204
with input constraints	0	4	33	37	34	27
Based on on-farm services	152	241	172	145	175	195
with input constraints	0	0	0	0	0	0
Payments based on current A/An/R/I, production required	3	137	0	0	0	0
Based on Receipts / Income	0	59	0	0	0	0
Based on Area planted / Animal numbers	3	78	0	0	0	0
With input constraints	0	0	0	0	0	0
Payments based on non-current A/An/R/I, production required	0	0	747	606	748	888
Payments based on non-current A/An/R/I, production not required	0	1 168	0	0	0	0
With variable payment rates	0	0	0	0	0	0
with commodity exceptions	0	0	0	0	0	0
With fixed payment rates	0	1 168	0	0	0	0
with commodity exceptions	0	0	0	0	0	0
Payments based on non-commodity criteria	0	0	1 898	1 475	2 091	2 127
Based on long-term resource retirement	0	0	1 898	1 475	2 091	2 127
Based on a specific non-commodity output	0	0	0	0	0	0
Based on other non-commodity criteria	0	0	0	0	0	0
Miscellaneous payments	0	0	0	0	0	0
Percentage PSE (%)	30.91	25.22	11.63	6.58	12.15	15.61
Producer NPC (coeff.)	1.41	1.26	1.07	1.03	1.08	1.10
Producer NAC (coeff.)	1.45	1.34	1.13	1.07	1.14	1.18
General Services Support Estimate (GSSE)	1 048	621	1 392	681	1 846	1 650
Agricultural knowledge and innovation system	288	304	430	377	450	464
Inspection and control	0	102	56	51	58	59
Development and maintenance of infrastructure	285	112	906	253	1 338	1 126
Marketing and promotion	83	103	0	0	0	0
Cost of public stockholding	392	0	0	0	0	0
Miscellaneous	0	0	0	0	0	0
Percentage GSSE (% of TSE)	9.49	6.52	11.63	11.59	13.94	9.87
Consumer Support Estimate (CSE)	-7 016	-5 522	-4 558	-1 109	-5 532	-7 035
Transfers to producers from consumers	-7 671	-5 894	-4 849	-1 279	-5 824	-7 442
Other transfers from consumers	-396	-124	-20	-4	-21	-35
Transfers to consumers from taxpayers	853	348	220	175	209	276
Excess feed cost	199	148	90	0	104	167
Percentage CSE (%)	-25.65	-16.27	-4.86	-1.47	-4.38	-9.42
Consumer NPC (coeff.)	1.40	1.21	1.05	1.02	1.05	1.11
Consumer NAC (coeff.)	1.34	1.19	1.05	1.01	1.05	1.10
Total Support Estimate (TSE)	11 048	9 511	11 947	5 879	13 240	16 721
Transfers from consumers	8 067	6 018	4 868	1 283	5 845	7 477
Transfers from taxpayers	3 377	3 617	7 099	4 600	7 416	9 280
Budget revenues	-396	-124	-20	-4	-21	-35
Percentage TSE (% of GDP)	2.47	1.22	0.69	0.40	0.74	0.91
Total Budgetary Support Estimate (TBSE)	3 399	3 542	6 025	4 089	6 903	7 083
Percentage TBSE (% of GDP)	0.76	0.45	0.35	0.28	0.38	0.39
GDP deflator (1991-93 = 100)	100	391	1 184	1 133	1 183	1 234
Exchange rate (national currency per USD)	3.08	9.48	18.73	20.13	17.76	18.30

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 Mexico are: barley, garlic, red pepper, Chinese cabbage, rice, soybean, milk, beef and veal, pig meat, poultry and eggs.

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

Policy landscape

Main policy instruments

Since 2019, agricultural policies in Mexico have been delivered mostly via the following programmes:

• Fertiliser for Wellbeing Programme, which physically provides nitrogenous and phosphate fertilisers (up to 600 kg per farmer per year) to small-scale producers. Beneficiaries include producers of maize, beans, rice, or any other crop holding no more than 3 ha and located in highly marginalised and poor communities of the country.

• The Production for Wellbeing Programme provides area-based payments that target small-scale producers. Payment rates decrease with farm size and differ by product. The products covered are maize, rice, beans, wheat, amaranth, chia, sugarcane, coffee, cocoa, nopal-cactus, honey, and milk.

• The Guaranteed Prices Programme for small and medium-sized producers of maize, beans, wheat, milk, and rice. Guaranteed minimum prices address various challenges faced by farmers, such as lack or insufficiency of infrastructure i.e. rural roads, storage facilities, market information, or limited co-operatives. These challenges push farmers to sell their produce to middlemen at prices lower than market prices, the programme therefore sets a minimum price that must be paid to farmers. The programme is operated as 2025 by the state enterprise DICONSA.

• The Programme for the Promotion of Agriculture, Livestock, Fishing and Aquaculture, which provides input subsidies to small-scale farmers. These subsidies help farmers purchase variable inputs (e.g. seeds), improve fixed capital formation (e.g. machinery and equipment), hire services (e.g. technical assistance), etc.

• The Rural Supply Programme (PAR) is under the responsibility of DICONSA, which is a state enterprise that has a network of convenience stores across the country. DICOSA by operating the PAR programme facilitates physical access to staple food products to populations living in localities with high levels of marginalisation and poverty. It has more than 24 500 convenience stores (fixed or mobile) across the country selling at reduced prices 30 products defined as staple food basket. DICONSA has two main functions, first to buy staple products directly from small-scale farmers; then to distribute food across its stores network.

• Domestic milk acquisition and the social milk supply programme under the responsibility of the social milk supply programme (LICONSA). LICONSA is a state enterprise that buys milk from small-scale producers and then collects it in its network of 58 collection centres and processes it in its 10 industrial plants. Once the milk is processed, LICONSA distributes it in stores (some are DICONSA stores) across the country and the milk is sold at reduced prices to low-income populations that are part of the national social programmes. Both DICONSA (created in 1986) and LICONSA (created in 1944) support food actions for vulnerable poor populations.

• The Sowing for Life Programme supports agroforestry projects implemented by small-scale farmers located in poor municipalities. The programme provides direct payments, in-kind support (e.g. plants, seeds, sowing tools and nurseries) and technical support. The programme is under the responsibility of the Ministry of Wellbeing.

• Water pumping subsidy via reduced electricity rates, (Ley de Energía para el Campo, LEC-2002). Indirect subsidies are provided to farmers by reduced electricity rates for water pumping to irrigate land, this programme benefits all types of farmers, but mostly medium and large scale.

Investments in general services for the sector predominantly include agricultural knowledge and innovation system, hydrological infrastructure and animal and plant health. SENASICA, the agency in charge of implementing sanitary measures in the agro-food chain, implements sanitary and phytosanitary campaigns and measures for early detection of pests and diseases. This programme supports inspection and monitoring projects of sanitary risks, control and prevention of pests and diseases, inspection of goods that are transported in the country, implementation of systems for reducing contamination risks in production units and promotion of good sanitary practices.

Besides these key policy instruments, the country also implements different initiatives related to innovation, sustainability, climate change, soil recovery, value-added, and financing, such as 1) Acquisition of Genetic Material and Inputs. This programme aims to increase the area planted with certified bean seeds in regions with low productivity, to contribute to the recovery of varietal identity, genetic vigour, and resilience and productivity; 2) Added Value and Markets. Some sub-sectors are provided with technical assistance to promote value addition, with a focus on the circular bioeconomy and on agricultural market connections; 3) Agricultural Bioeconomy Sector Strategy. Technical assistance measures that aim at eliminating waste and pollution; circulating products and materials; and regenerating nature. It seeks to increase the productivity of natural resources, emphasising conservation and regeneration.

The Ministry of Agriculture, in coordination with other federal government agencies implements rural development actions in priority territories via the Special Concurrent Programme for Sustainable Rural Development. The programme has several initiatives related to agriculture, such as:

• Subsidies for strategic projects to strengthen staple food production (e.g. beans, native maize, forage cactus) in priority poor rural areas.

• Technical support for beneficiaries of the Sowing Life Programme (reforestation programme).

• Technical support and advice for projects for timber harvesting and management of non-timber forest resources, and forest management certification.

To address limited access to credit by small-scale farmers, a Strategy to Promote Access to Finance for beneficiaries of the Production for Wellbeing Programme (direct payments) was created in 2023. Under this strategy, small-scale farmers who are beneficiaries of the Programme get a financial supplement via credit. This credit is used for the acquisition of productive capital goods, harvesting, post-harvest, value-added activities, and marketing. These credits are tailored to the needs and characteristics of smallholders. Credit is provided based on borrowing capacity aligned with production cycles, appropriate requirements and procedures, and at preferential interest rates. The Strategy is implemented through the National Guarantee Fund for the Agricultural, Forestry, Fisheries, and Rural Sectors (FONAGA), with resources from the Agricultural Trusts FIRA, a second-tier bank.

In terms of climate change mitigation, agriculture contributes around 13% of GHG emissions in Mexico. The country’s pledge to the Paris Climate Conference in December 2015 includes unconditional and conditional targets. Under the 2020 update of its Nationally Determined Contribution (NDC), Mexico committed to unconditionally lower GHG emissions by 22% and black carbon emissions by 51% relative to BAU by 2030. Agriculture GHG emissions reduction targets are -8%. Depending on international support, this could increase to 36% of total emissions and to 70% of black carbon emissions.

To achieve these targets, the agricultural sector strategy promotes agricultural practices adapted to climatic and environmental conditions such as soil conservation and reduced burning of residues considering community and scientific knowledge; and adopting agroforestry, agroecology and biodigesters on livestock farms. A key programme on mitigation is No Fires in my Parcel (Mi parcela no se quema), created in 2021. The programme is a campaign that provides alternatives to the use of fire in productive systems and the regulations associated with this activity. It uses an application on smartphones to warn of agricultural fires as well as forest fires.

In terms of adaptation to climate change, the Agrifood Technical Workshops (MTA) facilitate a space for discussion between producers, technicians and academics on the expected changes in rainfall and temperature in their region and how these changes may affect their crops. At these workshops climate forecasts are discussed and based on scientific and traditional knowledge. Producers determine the management that seems most appropriate (species, varieties, planting times, types of fertilisation, pest incidence forecasts, etc.) and as a result, an agro-climatic bulletin is prepared that summarises the climate forecasts analysed and generates recommendations and adaptive measures for each type of crop. The National Strategy on Soil for Sustainable Agriculture (ENASAS) developed in 2022, is an instrument that aims to promote, strengthen, and co-ordinate actions to promote sustainable management of agricultural soils in the country. Besides the ENASAS the country also has the Soil Doctor Programme, which its objective is to train and certify farmers on sustainable soil management (SADER, 2025[1]).

Policies for trade and sustainability in agro-food markets

Mexico has several trade-related measures linked to the environmental sustainability of agriculture. A key one is the side agreement of the Environmental Cooperation Agreement (ECA) between Mexico, the United States, and Canada under the USMCA trade agreement. This ECA entered into force on 1 July 2020 and aims to enhance trilateral co-operation, including supporting the implementation of environmental commitments within the USMCA. Under the ECA, these countries co-operate to reduce pollution, strengthen environmental governance, conserve biological diversity, and sustainably manage natural resources (Frezal and Deuss, 2025[2]). The ECA modernises and enhances trilateral co-operation, including by supporting the implementation of the environmental commitments in the USMCA (EPA, 2024[3]; Frezal and Deuss, 2025[2]).

Mexico also has Regional Trade Agreements that incorporate Environment-Related Provisions (ERPs). One with the European Union, with an article on co-operation in agriculture and the rural sector (in application since 2000). This ERP targets co-operation on the harmonisation of environmental standards in the agricultural sector to facilitate trade. The other ERP that Mexico has is with Japan with an article on co-operation in the field of agriculture (in application since 2005) (Frezal and Deuss, 2025[2])

Another policy related to trade and sustainability is the Sowing for Life Programme (Sembrando vida), which aims to reforest degraded areas of the country by converting back to forest as well as the use of agro-forestry practices, in which export-oriented crops are located, as well as many other initiatives that are related to sustainability and indirectly related to trade (SADER, 2025[1]).

In 2025, the initiative to achieve zero deforestation caused by agricultural activities was implemented. It consists of fostering collaboration between the government and producers by promoting agricultural products in idle areas. The Ministry of Agriculture works with other institutions to limit the agricultural frontier and prevent deforestation attributed to livestock, avocado, agave, soybeans, and oil palm in the nine most affected states. Environmental financial compensation is provided to small and medium-sized producers who stop deforestation (SADER, 2025[1]).

Recent policy developments

Domestic policy developments in 2024-25

A new government took power in October 2024, and the National Development Plan (NDP) has been developed for the period 2024-30. Within this NDP, a Sectoral Programme for Agriculture and Rural Development was designed, which defines agricultural policy objectives and is implemented mainly by the Secretariat (Ministry) of Agriculture and Rural Development (SADER, 2025[1]).

Key objectives of the Sectoral Programme include: 1) improve agricultural productivity for food self-sufficiency; 2) reduce poverty rates in rural areas; 3) increase the income of small-scale agricultural producers; 4) develop an inclusive, sustainable, healthy, and nutritional agri-food system; 5) promote sustainable use of soil and water. These objectives are structured around four axes: 1) governance with justice and citizen participation; 2) development with wellbeing and humanism; 3) moral economy and jobs; and 4) sustainable development; and around three cross-cutting approaches: 1) women’s rights and equality; 2) innovation and technology development; and 3) protection of Indigenous and Afro-Mexican rights.

Agricultural policy instruments or programmes remain largely unchanged from the previous years, with minor adjustments that do not affect their fundamental purpose. They continue to focus on distributing resources equitably and paying special attention to gender equality, indigenous populations, and vulnerable groups. The goal is to foster a productive, inclusive, and sustainable agricultural sector.

The Fertiliser for Wellbeing programme in 2024 benefited 2.06 million farmers and reached 3 million ha. For 2025, the programme aims to reach 850 000 women farmers out of the 2 million beneficiaries. The total amount of fertiliser varies depending on the crop and soil characteristics, with a maximum of 300 kg per hectare and up to 600 kg per farmer.

The Production for Wellbeing programme is an income deficiency programme given to small-scale farmers of staple foods such as maize, beans, wheat, rice, amaranth, chia, sugar cane, coffee, cocoa, cactus leaves and honey. Subsidies are given to farmers with no more than 20 ha, and no beneficiary will receive less than MXN 6 000 (USD 330) but no more than MXN 24 000 (USD 1 300) (SADER, 2025[1]).

The Sowing for Life Programme reached 438 300 producers in 2024. The programme supports agroforestry projects implemented by small-scale farmers located in poor municipalities. The programme provides direct payments per hectare, trees to be planted and technical assistance in different areas.

The Guaranteed Prices programme by DICONSA, which buys food from producers and sells the food via Wellbeing stores to marginalised populations, established, for 2025, maize prices at MXN 5 840 (USD 319), for small-scale producers with 5 ha of rainfed land, who may sell up to 35 tonnes. These farmers will also receive MNX 160 (USD 9) per tonne for transporting their harvest to the collection centre. Bean farmers with up to 30 ha of rainfed land or up to 5 ha of irrigated land, will be able to access a guaranteed price of MXN 27 000 per tonne (USD 1 475) for 15 tonnes maximum. In 2025, milk producers will receive MXN 11.5 per litre (USD 0.63), and each producer may sell up to 30 litres per cow per day. Rice prices were set to MXN 8 230 (USD 451) for medium-sized producers, with a maximum volume of 300 tonnes, and MXN 9 080 (USD 496) for small producers, with a maximum volume of 80 tonnes. Wheat prices were established at MNX 7 050 per tonne (USD 385) for a maximum of 300 tonnes. For small-scale producers, prices were set at MXN 7 600 (USD 415), for a maximum of 50 tonnes (SADER, 2025[1]).

In 2024, the Rural Supply Programme (PAR) under the responsibility of DICONSA a network of convenience stores owned by the state, reached 22.7 million people with its 24 500 stores, now called Wellbeing stores. The budget of this programme was USD 140 million for 2025. At the same time, the domestic milk acquisition and the social milk supply programme under the responsibility of the social milk supply programme (LICONSA), benefited 6.4 million people, distributing 800 million litres of milk. The budget for 2025 was USD 81 million (SADER, 2025[1]).

In 2025, SEGALMEX was dismantled, the company oversaw state procurement of staple foods and the price-setting mechanism for small-scale farmers. These functions are now being carried out by DICONSA (SADER, 2025[1]).

In 2025, the Mexican Soil Alliance, developed a National Soil Restoration Programme to rehabilitate degraded soils. The programme aims to restore 25% of the eroded area through management practices that improve soil cover and organic matter, as well as practices to reduce soil loss. An app (BioParcela APP) was created in 2025, for technicians and producers to allow agricultural producers to georeference their properties and keep an electronic record of all their productive activities, including actions related to sustainability, such as soil conservation, water management, and use of pesticides, among others (SADER, 2025[1]).

Trade policy developments in 2024-25

The average applied most-favoured-nation (MFN) tariff on agricultural imports in 2023 was 11.9%, above the 6% faced by non-agricultural products. Certain sectors face significantly higher rates, such as sugars (29.5% on average), coffee, tea, and cocoa (16.2%) (WTO, 2025[4]).

In December 2024, a panel of the United States-Mexico-Canada Agreement (USMCA) ruled against Mexico on the import ban on genetically modified (GM) maize that Mexico imposed in January of 2023. As a result, Mexico lifted the ban on GM maize imports in February 2025. In March 2025, a decree was published that forbade the production of transgenic maize inside the country. This decree recognises maize as an element of national identity and establishes that it must be free of genetic modifications; although GM maize was marginally or not produced at all in the country (SADER, 2025[1]).

Policy context

Key economic and agricultural statistics

In 2023, Mexico had a population of 129 million and was the 12^th largest world economy. Agriculture’s contribution to GDP has increased from 3.2% in 2000 to 3.8% in 2023. Despite the decline over the past two decades, agriculture’s share of total employment remains relatively high at 11.2% in 2023. Trade is an important driver of Mexico’s economy; in 2023, it represented 33.2% of GDP. Agro-food trade is an important fraction of total trade, both in terms of exports and imports, representing 7.1% and 5.1% respectively (Table 20.2).

Table 20.2. Mexico: Contextual indicators

	Mexico		International comparison
	2000*	2023*	2000*	2023*
Economic context			Share in total of all countries
GDP (billion USD in PPPs)	1 154	3 222	2.9%	2.1%
Population (million)	101	129	2.4%	2.4%
Land area (thousand km2)	1 944	1 944	2.4%	2.4%
Agricultural area (AA) (thousand ha)	106 330	96 023	3.5%	3.3%
			All countries1
Population density (inhabitants/km2)	52	65	52	64
GDP per capita (USD in PPPs)	11 441	24 912	9 368	29 013
Trade as % of GDP	23.3	33.2	12.3	14.9
Agriculture in the economy			All countries1
Agriculture in GDP (%)	3.2	3.8	2.9	3.5
Agriculture share in employment (%)	17.3	11.2	-	-
Agro-food exports (% of total exports)	4.6	7.1	6.4	8.1
Agro-food imports (% of total imports)	5.5	5.1	5.8	7.3
Characteristics of the agricultural sector			All countries1
Crop in total agricultural production (%)	57.0	59.5	-	-
Livestock in total agricultural production (%)	43.0	40.5	-	-
Share of arable land in AA (%)	21.5	19.8	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 an 8.3% contraction due to the COVID-19 pandemic, the economy grew more quickly with a rebound by 6% in 2021 and continued growth above the pre-pandemic levels, reaching 3.3% in 2023; however, in 2024, the country’s economy only grew 1.38%. Inflation has declined to 5.5% in 2023 after registering a peak of 7.9% in 2022, while the unemployment rate fell to 2.9% in 2024, the lowest level in more than two decades (Figure 20.4).

Since 2015, Mexico has registered a positive and growing net agro-food trade balance reaching a USD 11.5 billion surplus in 2023. This is due to key products such as avocado, lemon, and berries, among others. While most agro-food exports, 93%, are for final consumption (either primary or processed), more than half (52%) of agro-food imports are intermediate products for further processing, and 48% are primary and processed for consumption (Figures 20.5A and 20.5B).

Mexico’s agricultural output growth of 2.55%, during the period 2013-22. This growth was due predominantly to the increased use of primary factors, notably capital, and due to total factor productivity (TFP) which grew by 1.09% per year between 2013-22, faster than the world average (0.78%). Increased use of intermediate inputs, contributed less to the output growth (Figure 20.6).

Nutrient balances in Mexico have increased in the last decade and reached nearly 33.9 kg/ha for nitrogen and 3.7 kg/ha of phosphorus in 2023, both above the OECD average (29.7% and 2.5% respectively). In 2023, agricultural GHG emissions represent 19.1% of the country’s total, which is higher than the OECD average (10.1%) and above its relative contribution to the country’s economy (3.8% in 2023). Water stress for 2023 is 19.9, well above the one observed in 2000 (15.6). Agriculture is partly responsible for this pressure due to its high share of total water abstractions (74%) (Table 20.3).

Table 20.3. Mexico: Productivity and environmental indicators

	Mexico		International comparison
	1991-2000	2013-2022	1991-2000	2013-2022
			World
TFP annual growth rate (%)	2.9%	1.1%	1.7%	0.8%
			OECD average
Environmental indicators	2000*	2023*	2000*	2023*
Nitrogen balance, kg/ha	26.4	33.9	32.0	29.7
Phosphorus balance, kg/ha	1.9	3.7	3.3	2.5
Agriculture share of total energy use (%)	3.0	3.9	1.7	2.0
Agriculture share of GHG emissions (%)	19.1	19.1	8.7	10.1
Share of irrigated land in AA (%)	4.5	6.2	-	-
Share of agriculture in water abstractions (%)	82.0	74.0	47.0	49.5
Water stress indicator	15.6	19.9	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

Starting in the 1980s, reforms to price support reduced its prominence in the policy mix. In 1988‑89, guaranteed prices for wheat, sorghum, barley, rice and oilseeds were eliminated. After the enactment of the North American Free Trade Agreement (NAFTA) in 1994, guaranteed prices for maize and beans were phased out and the government withdrew from procurement and marketing except for beans and maize, for which government involvement was reduced but not eliminated (Anderson, K. and Valdes, A., 2007[5]; OECD, 2006[6]).

The old system of market support was replaced by a new one of direct income support payments (Procampo) based on the historic cultivated crop area, which was given to all farm sizes. During this period of trade liberalisation, subsidies for financial instruments to reduce financial risks (price hedge instruments) were also put in place. Input subsidies for seeds, fertiliser, pesticides, machinery and diesel fuel were reduced in the 1990s, but the input subsidy for electricity to pump groundwater was maintained (Anderson, K. and Valdes, A., 2007[5]; OECD, 2006[6]).

In 2018 direct payments were redirected to target small and medium-scale farmers located in poor regions of the country. Minimum guaranteed prices for staple crops were reinstated in the form of government purchases of crops from a limited number of farmers, targeted to smallholders, at a minimum price. Crops purchased under this intervention were then distributed to poor households at subsidised prices in both rural and urban areas. The Procampo programme (direct payments based on land) was renamed “Production for Wellbeing” and reformed to provide support only to small-scale farmers, with particular focus on those located in poor communities. Furthermore, subsidies for large farms and food processors to encourage price hedging were dismantled. A fertiliser programme targeted to smallholders was created as well as the programme Sowing for life programme that subsidises agroforestry activities carried out by smallholders.

Table 20.4. Mexico: Agricultural policy trends

Period	Broader framework	Changes in agricultural policies
Prior to 1990s	Import substitution model	Agricultural tariffs and import quotas Minimum prices for staple food (maize, rice, beans, wheat, etc.) State food marketing enterprise (CONASUPO) Subsidies for inputs (fertilisers, seeds, electricity for water pumps) Preferential agricultural credit
1990-2018	Trade liberalisation	Dismantling of tariffs on agricultural products (except sugar) Dismantling of state marketing enterprise Elimination of input subsidies, except electricity for water pumps Elimination of minimum prices Reforms to land tenure NAFTA and other FTAs signed Preferential agricultural credit Creation of direct payment to farmers (PROCAMPO) Insurance and price hedge subsidies
2018- present	Reforms to target and tailor direct payments to smallholders	Guaranteed minimum prices on staples (maize, beans, wheat, rice and milk) are targeted at smallholders and limited to a certain amount of production volume. PROCAMPO was renamed “Production for Wellbeing” and reformed to provide payments to only small-scale producers living in poverty conditions across the country. The fertiliser for wellbeing programme was created to target only small-scale farmers and is limited to only 600kg per year per farmer. The Sowing Life programme was created to support agroforestry projects implemented by small-scale farmers. Electricity subsidy for water pumping continues. Preferential agricultural credit continues at a lower rate, while financial institutions have been reformed or dismantled. SEGALMEX was dismantled and it functions were transferred to DICONSA

Mexico provides relatively low levels of support to its agricultural sector, and this has decreased over the years. However, for the years 2023 and 2024, an important increase in support has been seen due to an increase in MPS. The Mexican Producer Support Estimate (PSE) was mostly comprised of market price support until the end of the 1990s. After this period, the share of market price support declined while that of budgetary support grew, until 2016 when market price support and input-based support again became the largest components of producer support (Figure 20.7)

References

[5] Anderson, K. and Valdes, A. (2007), Distortions to Agricultural Incentives in Latin America, World Bank Group, Washington, DC,, http://documents.worldbank.org/curated/en/518211468170062688/Distortions-to-agricultural-incentives-in-Latin-America.

[3] EPA (2024), Agreement on Enviromental Cooperation among the Governments of the United States of America, The United Mexican States, and Canada.

[2] 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.

[6] OECD (2006), Agricultural and Fisheries Policies in Mexico: Recent Achievements, Continuing the Reform Agenda, OECD Publishing, Paris, https://doi.org/10.1787/9789264030251-en.

[1] SADER (2025), Inputs for the OECD Agricultural Monitoring and Evaluation.

[4] WTO (2025), Tariff profiles.