Agricultural policy in Colombia is guided by the agricultural and rural components of the National Development Plan (PND, by its Spanish acronym). The PND 2022-2026, “Colombia, world power of life (Colombia, potencia mundial de la vida)” prioritises sustainable rural development by:
formalising land tenure and land reform
strengthening agricultural planning
improving farmers’ access to productive factors such as irrigation, extension, financing, technology and connectivity
encouraging small-scale producers’ associations, inclusion and diversity
strengthening and shortening supply chains
establishing climate smart adaptation strategies for agricultural production.
Preferential interest rates for agricultural credit, covering working capital, marketing and investment, are provided through the Financing Fund for the Agricultural Sector (Fondo para el Financiamiento del Sector Agropecuario, FINAGRO), which acts as the implementing agency of the National Agricultural Credit System (Sistema Nacional de Crédito Agropecuario, SNCA). The National Agricultural Credit Commission (Comisión Nacional de Crédito Agropecuario, CNCA), as the governing body of the SNCA, annually defines the financing policy for the sector, including the terms and conditions of financial instruments. The instruments include special lines of credit and microcredit (LEC/LEM), incentives for rural capitalisation (ICR), the Agricultural Guarantee Fund (Fondo Agropecuario de Garantías, FAG), which provides collateral guarantees for agricultural loans, and the risk management instruments financed through the National Agricultural Risk Fund (Fondo Nacional de Riesgos Agropecuarios, FNRA). The FNRA finances the agricultural insurance incentive (ISA), which subsidises the cost of agricultural insurance premiums at rates set annually by the CNCA and differentiated by type of producer.
Input subsidies are provided to support farm improvements. The Comprehensive Agricultural and Rural Development Projects with a Territorial Approach (Proyectos Integrales de Desarrollo Agropecuario y Rural con Enfoque Territorial, PIDAR), co-financed and implemented by the Rural Development Agency (Agencia de Desarrollo Rural, ADR), provide subsidies for investments related to drainage and on-farm irrigation infrastructure, other fixed capital formation, as well as for technical assistance. The Fund for Agricultural Promotion (Fondo de Fomento Agropecuario) provides co-financing for projects to strengthen technology transfer, research, and modernisation activities, and to improve productive, physical, and social infrastructure in rural areas. The Productive Alliances programme focuses on small-scale farmers and provides subsidies for various inputs, including variable inputs (e.g. seeds and fertilisers), fixed capital investments (e.g. irrigation, drainage, machinery), and on-farm services (e.g. technical assistance). Farmers also benefit from subsidies for animal and plant health control services.
The Andean Price Band System (SAFP) establishes a and ceiling prices for a set of marker agricultural products and their linked and derived products. The system currently covers several products, including cereals, oilseeds, sugar, dairy products and selected livestock products. In some cases, the SAFP may be suspended and replaced by fixed applied tariffs. During 2025 and early 2026, this remained the case for selected products, including rice, powdered milk, white maize and whey.
Price Stabilisation Funds (FEPs) also use reference price bands to stabilise farm income. These funds provide payments to producers when a product’s reference market price falls below a minimum (floor price). When the reference price exceeds an established ceiling price, producers contribute to the funds. FEPs therefore operate as producer-funded stabilisation mechanisms that compensate for differences between domestic and export market conditions and may result in domestic producer prices differing from international reference prices. The ceiling and floor prices are established by councils composed of producer representatives and government officials based on selected international prices for each product, while payments and contributions are calculated using a reference market price. FEPs are financed and administered by producer associations and are currently apply to cotton, cocoa, palm oil, sugar, beef and milk.
Public investments in general services focus on farm restructuring, agricultural research and extension services, as well as inspection and control. Efforts under the framework of the Peace Agreement on the provision of rural public goods and services have increased the amount of land with formal tenure, improved irrigation and drainage, and provided technical assistance. Recent years have seen a significant acceleration in land restitution to victims of dispossession and forced displacement during the armed conflict, contributing to a cumulative total exceeding 3 600 000 hectares (less than 1% of Colombia’s 40.5 million hectares of agricultural area) by the end of 2025.1