Agricultural Policy Monitoring and Evaluation 2026

10. Costa Rica

Main findings

Support to agriculture

In 2023-25, Costa Rica’s Producer Support Estimate (PSE) amounted to 3.7% of gross farm receipts, well below the OECD average and down from 8% in 2000-02. Most producer support is market price support (MPS) – among the potentially most production- and trade-distorting forms of support – and arising mainly from border measures, such as tariffs. Products with market price support include pig meat, poultry meat, sugar, and rice. On average, border protection raised producer prices by 3% relative to international prices in 2023-25.

Budgetary support to producers is comparatively small and represented 0.6% of gross farm receipts in 2023-25. 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.

General services expenditure (General Services Support Estimate, GSSE) in 2023-25 averaged 1.3% of the value of agricultural production, an increase from 0.9% in 2000-02 but still less than half the OECD average. Most GSSE expenditure is allocated to the development and maintenance of infrastructure, the agricultural knowledge and innovation system (particularly extension services), and to inspection and control services.

Total support to the sector (Total Support Estimate, TSE) relative to GDP declined from 1.2% in 2000-02 to 0.4% in 2023-25, slightly below the OECD average.

Key policy changes in 2025-26

The Sustainable Agro‑Landscapes Initiative and the Planeta Vivo national label were launched in 2025. These initiatives aim to certify and showcase Costa Rica’s environmental protection efforts and to differentiate agricultural products in international markets through a label that demonstrates deforestation-free production, a neutral emissions balance, and the responsible use of pesticides.

A credit subprogramme was established to support sustainable production practices in the livestock, coffee, and sugarcane sectors. It targets small and medium producers undertaking investments and provides guarantees covering up to 75% of the loan principal. Beneficiaries must have farm diagnoses, investment plans and technical follow‑up to ensure the effective adoption of sustainable practices.

A multi-stakeholder committee to define strategic priorities for agricultural research and development was created and held its first session in 2025. This body brings together public, private and academic actors to ensure that research efforts align with technical evidence, producer and market needs, and sustainability objectives.

The Ministry of Agriculture and its decentralised bodies were reorganised to modernise and streamline their work. A key component of the reform was the creation of a specialised unit within the agricultural extension directorate to lead the digital transformation efforts and integrate emerging technologies into its services.

Assessment and recommendations

• Put greater emphasis on strengthening productivity through improved technology adoption, more efficient resource use, and better infrastructure, which will be essential to future-proof the sector. Falling rates of agricultural productivity growth continue to be a concern, particularly given growing pressures on agriculture, such as deteriorating export competitiveness due to currency appreciation and the risk of a strong El Niño event in 2026‑27.

• Increase support for general services and investment in the innovation system. This would build on recent efforts to guide agricultural research and development by bringing together stakeholders and aligning priorities with producer needs, markets and sustainability, which help strengthen co‑ordination and support the uptake of innovative solutions. Ensuring strong and stable funding for agricultural innovation, both through increased public investment and by incentivising private engagement, is essential, for example through targeted incentives or thematic public-private partnerships.

• Incentivise the adoption of sustainable practices and a more efficient use of inputs, for example by consistently linking benefits from existing programmes to the adoption of specific practices. Environmental pressures from agriculture remain high: GHG emissions (mainly methane and nitrous oxide) are well above the OECD average, there is an elevated phosphorus balance, and water use is particularly intensive. Improving input-use efficiency is especially critical in a context of rising fertiliser and agricultural input costs that add pressure on the economic viability of farms.

Key indicators on agricultural support

Table 10.1. Costa Rica: Estimates of support to agriculture

Million USD

.	2000-02	2023-25	2023	2024	2025p
Total value of production (at farm gate)	2 205	7 199	6 844	7 259	7 494
of which: share of MPS commodities (%)	79.23	79.46	79.60	79.36	79.41
Total value of consumption (at farm gate)	1 132	3 387	3 123	3 369	3 671
Producer Support Estimate (PSE)	176	267	237	342	222
Support based on commodity output	165	227	197	299	185
Market price support¹	165	227	197	299	185
Positive market price support	165	227	197	299	185
Negative market price support	0	0	0	0	0
Payments based on output	0	0	0	0	0
Payments based on input use	10	39	39	42	35
Based on variable input use	4	18	20	22	12
with input constraints	1	18	20	22	12
Based on fixed capital formation	1	9	8	8	11
with input constraints	0	2	1	1	3
Based on on-farm services	5	12	11	12	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	2	2	2
Based on long-term resource retirement	0	2	2	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 (%)	7.98	3.69	3.45	4.68	2.95
Producer NPC (coeff.)	1.08	1.03	1.03	1.04	1.03
Producer NAC (coeff.)	1.09	1.04	1.04	1.05	1.03
General Services Support Estimate (GSSE)	20	92	81	90	105
Agricultural knowledge and innovation system	10	30	28	30	32
Inspection and control	3	27	26	28	26
Development and maintenance of infrastructure	7	34	26	31	45
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)	10.37	25.55	25.49	20.81	32.04
Consumer Support Estimate (CSE)	-192	-250	-213	-295	-242
Transfers to producers from consumers	-157	-196	-178	-243	-168
Other transfers from consumers	-35	-54	-36	-52	-74
Transfers to consumers from taxpayers	0	0	0	0	0
Excess feed cost	0	0	0	0	0
Percentage CSE (%)	-16.90	-7.38	-6.84	-8.75	-6.60
Consumer NPC (coeff.)	1.20	1.08	1.07	1.10	1.07
Consumer NAC (coeff.)	1.20	1.08	1.07	1.10	1.07
Total Support Estimate (TSE)	197	359	319	432	327
Transfers from consumers	192	250	213	295	242
Transfers from taxpayers	40	163	141	189	159
Budget revenues	-35	-54	-36	-52	-74
Percentage TSE (% of GDP)	1.24	0.38	0.37	0.45	0.32
Total Budgetary Support Estimate (TBSE)	31	132	122	133	142
Percentage TBSE (% of GDP)	0.20	0.14	0.14	0.14	0.14
GDP deflator (2000-02 = 100)	100	384	385	385	384
Exchange rate (national currency per USD)	332.29	520.89	544.05	515.11	503.50

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 (2026), “Producer and Consumer Support Estimates”, OECD Agricultural policy monitoring (database), https://data-explorer.oecd.org/.

Policy landscape

General policy direction

The Public Policy for the Agricultural Sector 2023-32 sets out the main policy guidance. This framework outlines measures to enhance productivity, sustainability, resilience, and climate change adaptation, with the ultimate goals of improving the international competitiveness of Costa Rican products, creating employment and improving living conditions in rural areas (Ministerio de Agricultura y Ganadería, 2023[1]). The policy is structured around four key action areas: modernising and reinforcing the public institutions governing the sector and improving their co-ordination; boosting competitiveness; improving productivity and sustainability; and strengthening value added and marketing channels. Implementation of the policy is guided by the Sectoral Plan of the Public Policy for the Costa Rican Agricultural Sector 2023‑27, which defines specific interventions for the first five-year phase.

The National Plan for Territorial Rural Development 2024-30 includes measures to support the agro-food sector, recognising that rural development encompasses more than agriculture. Actions in this plan include agricultural extension services, training in new technologies and sustainable practices, support for local enterprises, 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 across the seed production chain. Its actions include developing new seed varieties, promoting local seed production and exports, facilitating knowledge transfer, and ensuring the security of the seed supply.

Market and trade policies

Costa Rica applies a range of border measures on agricultural imports, including tariffs and sanitary and phytosanitary (SPS) requirements. In 2025, the average applied most-favoured-nation (MFN) tariff on agricultural goods was 11.5% compared with 4.6% for non-agricultural products. Some sectors face considerably higher MFN average rates, such as dairy (45.6%), animal products (21.2%) and sugars (18.9%) (WTO ITC UNCTAD, 2026[2]). Important reforms in this area took place in 2022 with the elimination of the reference price and a reduction in import tariffs for rice.

Costa Rica has entered into 18 regional trade agreements (RTAs) with 54 trading partners1 across the world. Most of Costa Rica’s agro-food trade is conducted under these agreements: in 2022-24, RTA partners accounted for 95% of agro-food exports and 86% of imports (WITS, 2026[3]).

A programme for agricultural export promotion and diversification (Descubre) links farmers to export markets and international 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 primarily support the provision of general services to agriculture, including extension services, research and development (R&D), and plant and animal health services, with a strong emphasis on agri‑environmental objectives. Farmers also receive targeted payments and subsidies, mostly directed to small‑scale producers. These include non-refundable grants for the purchase of machinery, equipment or inputs and for productive infrastructure, as well as public investments in small-scale irrigation and drainage infrastructure. Support is also provided implicitly through credit at preferential interest rates.

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 institutions such as school cafeterias, hospitals and prisons.

The National Institute for Innovation and Transfer of Agricultural Technology (INTA) oversees agricultural research, development and innovation. Its accrued budget in 2025 was CRC 4.9 billion (USD 9.8 million). Together with the MAG’s National Directorate of Agricultural Extension (DNEA), INTA also delivers technology transfer and extension services to farmers. Animal and plant health services are provided by the National Animal Health Service (SENASA) and the National Phytosanitary Service (SFE), respectively. The 2025 budgets of these agencies were respectively CRC 9.7 billion (USD 19.4 million) and CRC 12.3 billion (USD 24.4 million) (Ministerio de Hacienda, 2026[4]).

Agricultural producers benefit from some tax incentives related to their activities and inputs. For example, the valuation of agricultural land for purposes of the municipal property tax is based on the land use instead of its market value (OECD, 2020[5]). Any producer registered with the Ministry of Finance is exempt from import taxes on equipment (including work vehicles), machinery, and other inputs. Certain agricultural and veterinary inputs, as well as basic foodstuffs, are subject to a reduced VAT rate of 1% (compared to the standard rate of 13%). Domestic sales of certified organic products are taxed at a VAT rate of 0.5%.

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 integrate tree planting into their crop or pasture systems. This helps maintain, recover, and develop forest ecosystems, increase carbon sequestration, enhance rural landscapes and the environmental conditions on livestock farms, and generate additional income through the sale of timber from planted trees. Payments to farmers in 2025 amounted to CRC 102 million (USD 202 582).

The Recognition of Benefits for Good Agricultural and Livestock Practices programme provides monetary incentives to agricultural producers, covering 20% to 30% of the cost of investments that generate positive environmental impacts, such as hedgerows, fodder banks, biodigesters or organic waste‑treatment systems. In 2025, total payments to farmers amounted to CRC 362 million (USD 719 092). The Recognition of Organic Environmental Benefits programme offers annual payments for up to three years to producers who are certified organic or in transition. The total amount paid to farmers in 2025 was CRC 158 million (USD 314 718), with individual amounts determined by the department responsible following an assessment of each applicant’s investment proposal. Both programmes are managed by MAG.

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

The Ecological Blue Flag (Bandera Azul) for the agricultural sector is a voluntary programme that recognises farmers who adopt practices related to water management, soil conservation, use of agricultural inputs, fossil fuels and electricity, as well as climate adaptation and resilience.

Consumer and nutrition policies

Costa Rica operates a school meal programme that covers all levels of public education, from preschool to young adults. The School Child and Adolescent Food and Nutrition Programme (PANEA, by its Spanish acronym) is financed by the central government through the Ministry of Education. In 2024, PANEA had an executed budget of CRC 79 billion (USD 154 million) and reached 96% of schools, providing meals to over 789 000 students, or 88% of students enrolled in the public education system (FODESAF, 2025[6]). The programme is managed in a decentralised manner by school boards, which oversee implementation decisions ‒ including food purchases, menu planning and the creation of school gardens ‒ and receive subsidies to carry out these tasks. Sample menus and nutritional guidelines are tailored to different age groups, and there are regionally tailored menus for indigenous communities. Regulations also govern the types of food that can be sold in school shops. Most food is purchased through the Institutional Supply Programme (PAI), although direct purchases through competitive bidding are possible in some cases. Meals are served five days a week, with some schools also providing them during school holidays.

Climate change mitigation and adaptation

Costa Rica has committed to achieving a decarbonised economy with net-zero emissions in 2050 and set an economy-wide target for reducing greenhouse gas (GHG) emissions by 2030. Although agriculture accounts for 22% of national GHG emissions, there is no sector-specific mitigation target. A sector-specific climate adaptation plan is currently under development and is expected to launch in 2026.

Five sector-specific Nationally Appropriate Mitigation Actions (NAMAs) have been registered with the United Nations Framework Convention on Climate Change (UNFCCC). Two of them, for coffee and livestock, are in the scale-up phase. The coffee NAMA which is being implemented by 375 farms, and the livestock NAMA covers around 3 600 farms (or 14% of Costa Rica’s cattle herd). The additional registered NAMAs are for sugarcane, musaceae (e.g. bananas and plantain), and rice, all of which are in the pilot phase. The NAMAs have been developed as public-private partnerships and are supported by international co-operation funds.

Recent policy developments

Domestic policy developments in 2025-26

Regulatory and sector management developments

An institutional reorganisation was carried out to modernise and simplify the structure of the Ministry of Agriculture and Livestock (MAG) and its decentralised bodies. The new regulation, published in November 2025, consolidates advisory and administrative staff from MAG, the State Phytosanitary Service (SFE), the National Animal Health Service (SENASA), and the National Institute for Innovation and Transfer in Agricultural Technology (INTA) into single departments or units. It also revised the mandates of several units to streamline internal operations and improve institutional service delivery. The reorganisation further updated the structure of the National Directorate of Agricultural Extension (DNEA) to better align with current sector priorities, including environmental sustainability, value added and competitiveness, agribusiness development, climate change adaptation, and reducing gaps in rural communities. A specialised unit was also created within the DNEA to lead digital transformation efforts and integrate emerging technologies into MAG’s services.

The governance of agricultural research was strengthened through the establishment of the Expert Committee for the Prioritisation of Research and Technology Transfer Activities, which held its first session in September 2025. The committee brings together representatives from the public, private and academic sectors to set research priorities and develop a roadmap to guide the work of INTA. The committee strengthens the relationship between INTA and other bodies linked to scientific-technological development and improves the planning of agricultural research, as well as its alignment with technical evidence, producer and market needs, and sustainability objectives.

The regulatory framework governing organic agriculture was updated through a decree published in February 2025. Among other changes, this regulation clarifies the requirements, procedures, and timelines for granting payments under the Recognition of Organic Environmental Benefits programme, addressing aspects that were previously ambiguous. It also enhances MAG’s capacity to regulate, supervise and promote organic production.

The government modernised the certification system for small and medium agricultural producers. The revised regulation, published in July 2025, aims to streamline registration, improve the traceability of information and ensure a timelier updating of the producer registry. Producer registration was simplified by extending its validity from one to two years, allowing the submission of applications at any agricultural extension agency regardless of farm location, and enabling producers to also register online. The reform established clearer guidelines for co-ordination with institutions that use the small and medium producer registry to determine programme eligibility, to optimise the execution of sectoral programmes and facilitate small and medium-sized producers’ access to public support schemes.

The territorial coverage of the National System for Individual Identification and Traceability of Cattle was expanded in 2025. Training was carried out for more than 6 500 participants across the livestock chain, with over 417 000 animals identified and registered in the national traceability platform Trazar-Agro. Nearly 60% of cattle movement authorisations are now issued digitally. Work also started to include additional sectors in the traceability system, including training on the use of digital permits for the pork sector and co-ordination with the poultry sector for their integration beginning in 2026.

Regulations governing the sale of live cattle and other species at auctions were updated in November 2025 to reduce informal trading practices and promote price transparency. The new framework prohibits pig auctions and livestock markets without veterinary supervision, and requires cattle sellers to present an official movement permit, individual identification and a registered brand consistent with the documentation, with all transactions recorded in the traceability system. Auction facilities must also meet specific infrastructure requirements to ensure animal welfare.

Support to producers

The MAG and the National Institute for Rural Development (INDER) implemented an initiative to modernise phytosanitary practices by donating drones for aerial application to organisations composed of micro, small, and medium producers. The initiative has supported over 3 000 producers across multiple crop types. To ensure a safe and appropriate use of drones, MAG and the National Learning Institute (INA) developed a capacity‑building programme aimed at the beneficiaries.

In October 2025, MAG and the Development Banking System (SBD) established a credit subprogramme within the Agro‑Development portfolio to promote investments that strengthen sustainable production practices in the livestock, coffee, and sugarcane sectors. The instrument is designed to support small and medium agricultural producers undertaking investments related to the sector NAMAs. Financing under this subprogramme is supported by guarantee mechanisms that cover up to 75% of the outstanding principal. To ensure that credit effectively translates into the adoption of sustainable practices, the institutions formalised a framework for joint implementation, which includes the performance of farm diagnoses and the formulation of plans and technical recommendations prior to credit approval, as well as follow-up actions.

Animal and plant health and food safety

A regulation standardising conditions for the terrestrial application of agrochemicals was issued in November 2025, as part of broader efforts to modernise precision agriculture and promote its responsible use. The regulation sets requirements for manual, motorised, and electric application equipment, including agricultural drones or remotely piloted aircraft systems. It specifies operational requirements for drone use to reduce worker exposure to agrochemicals, sets mandatory application and buffer distances according to equipment type, and requires the registration and periodic maintenance of all application equipment.

The Regulation to the Phytosanitary Protection Law was updated in October 2025. Among other changes, the updated regulation simplified the procedure for registering agricultural-use application equipment and removed numerous obsolete requirements.

SENASA strengthened the programme for control and eradication of livestock screwworm (Cochliomyia hominivorax) in response to rising case numbers. The programme includes monitoring, reporting, and regulating livestock movements to reduce spread of the pest. Technical personnel were deployed in key production areas to inspect livestock establishments. Training was provided to promote early detection, appropriate wound management, and reporting of suspected cases. Fixed sanitary checkpoints and mobile units were also established to support en‑route surveillance and prevention efforts.

Policies to mitigate emissions and facilitate climate change adaptation in agriculture

The Initiative for Sustainable Agro-Landscapes (Iniciativa de Agropaisajes Sostenibles, IAPS) and the Planeta Vivo country label were presented in May 2025. The IAPS ‒ led by the MAG and the Ministry of Environment and Energy (MINAE) ‒ is an integrated landscape-based approach that brings together environmental, agricultural and trade policies under a coherent governance framework to achieve net-zero deforestation, advance toward carbon neutrality within agroforestry landscapes, and promote the responsible use of pesticides. IAPS includes regulatory instruments, financial mechanisms and a robust monitoring, reporting and verification (MRV) system supported by national information platforms. It also provides official spatial data, territorial traceability and indicator tracking to inform decision-making and support compliance with international commitments.

The Planeta Vivo (Living Planet) country label differentiates products by formally recognising deforestation-free agricultural production, a neutral emissions balance within the landscape context, and the responsible use of pesticides. This scheme links climate and biodiversity policy objectives with export competitiveness by responding to increasing international requirements for due diligence and geolocation traceability. The technical criteria and verification requirements for the label are still under development.

Trade policy developments in 2025-26

One new trade agreement with Israel was signed in December 2025 and is pending ratification. In addition, Costa Rica advanced its integration into two major trading blocs. In March 2025, the Working Group on Costa Rica's Accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) held its first session, launching a series of technical negotiations that continued throughout the year. In July 2025, members of the Pacific Alliance (Chile, Colombia, Mexico, and Peru) finalised the guidelines and approved the start of the technical work required for Costa Rica's entry.

Two temporary tariff reductions due to domestic supply shortages were authorised in 2025. This allowed for the duty-free import of 4 189 tonnes of black and red beans and 1 680 tonnes of certain frozen turkey cuts.

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 supported steady economic progress and the development of its agricultural sector. Agriculture still plays a relatively important role, accounting for 10% of employment. While the share of agriculture in GDP is slightly above the average of all countries covered in this report (“all countries”), it has declined sharply since 2000, reflecting the diversification of the economy. GDP per capita has almost quadrupled between 2000 and 2024 and now stands just below the average of all countries (Table 10.2). In 2025, the World Bank reclassified Costa Rica from an upper-middle income to a high‑income economy.

Table 10.2. Costa Rica: Contextual indicators

	Costa Rica		International comparison
	2000*	2024*	2000*	2024*
Economic context			Share in total of all countries
GDP (billion USD in PPPs)	32	160	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	1 692	0.06%	0.06%
			All countries1
Population density (inhabitants/km2)	77	100	52	64
GDP per capita (USD in PPPs)	7 879	30 063	9 508	31 740
Trade as % of GDP	38.4	22.8	12.3	15.0
Agriculture in the economy			All countries1
Agriculture in GDP (%)	10.2	3.9	3.0	3.6
Agriculture share in employment (%)	16.6	9.4	-	-
Agro-food exports (% of total exports)	31.0	32.7	6.4	8.3
Agro-food imports (% of total imports)	7.6	13.1	6.1	7.5
Characteristics of the agricultural sector			All countries1
Crop in total agricultural production (%)	76.2	73.6	62.1	60.4
Livestock in total agricultural production (%)	23.8	26.4	37.9	39.6
Share of arable land in AA (%)	11.4	9.9	33.0	34.0

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 the strong post‑COVID‑19 rebound in 2021, real GDP growth has remained robust at around 4-5% in 2023-25, underpinned by strong domestic demand. Unemployment has fallen steadily since its 2020 peak and, at 6.8% in 2025, was below pre‑pandemic levels. Inflation, which briefly surged to 8% in 2022, dropped sharply in 2023 and turned negative in 2024 (Figure 10.4). Drivers of this rapid disinflation include the reversal of external price shocks and a strong appreciation of the local currency; inflation is expected to gradually rise in 2026 (OECD, 2025[7]; OECD, 2025[8]).

Costa Rica is a net exporter of agro-food products, which accounted for 33% of the 2024 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 36% of exports are processed products for final consumption. Products for final consumption made up 61% of agro-food imports (Figure 10.5B).

Costa Rica’s productivity performance has been below global trends (Figure 10.6). Between 2014 and 2023, agricultural Total Factor Productivity (TFP) is estimated to have declined by 1.3% on average per year. During this period, average annual output growth was close to zero, while the use of primary and intermediate inputs increased. This suggests that productivity losses largely explain weak output growth, possibly due to limited technological upgrading or resource allocation inefficiencies, such as expansion into less productive land, farm fragmentation, and limited infrastructure, as well as adverse weather shocks.

Over the past two decades, some of Costa Rica’s agri-environmental indicators have improved. For example, the sector’s share of total energy use and its contribution to national GHG emissions decreased (Table 10.3). Nevertheless, agricultural emissions (mainly methane and nitrous oxide) still represent around 22% of total GHG emissions, over twice the OECD average. The phosphorus balance also remains above average OECD levels. Agriculture continues to place pressure on water resources, accounting for two-thirds of total freshwater abstractions, significantly higher than the OECD average.

Table 10.3. Costa Rica: Productivity and environmental indicators

	Costa Rica		International comparison
	1991-2000	2014-23	1991-2000	2014-23
			World
TFP annual growth rate (%)	0.5%	-1.3%	1.8%	0.8%
			OECD average
Environmental indicators	2000*	2024*	2000*	2024*
Nitrogen balance, kg/ha	..	10.1	32.3	29.0
Phosphorus balance, kg/ha	..	7.4	3.3	2.3
Agriculture share of total energy use (%)	6.6	1.1	1.7	2.0
Agriculture share of GHG emissions (%)	29.2	21.8	8.7	10.3
Share of irrigated land in AA (%)	5.3	8.9	-	-
Share of agriculture in water abstractions (%)	..	66.8	46.1	47.7
Water stress indicator	..	4.1	..	..

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 10.4). Until the 1980s, the policy framework centred on import substitution, supported by active government market interventions. During this period, the country leveraged its natural comparative advantages by exporting traditional products such as coffee, bananas, sugar, and bovine meat.

From the mid-1980s, Costa Rica adopted an outward-oriented growth strategy, which shaped its agricultural support policies. Market interventions were considerably reduced, while continued domestic reforms and trade liberalisation advanced. Key milestones included 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 enabled duty-free imports from numerous partners, although certain agricultural products remain protected by relatively high tariffs.

The 2007-08 food price crisis increased concerns about food security, prompting the creation of programmes seeking to increase productivity of staple foods, particularly through extension services aimed at small-scale farmers. The administered rice price, maintained for decades, was reformed in 2015 and replaced with a minimum reference price, which was subsequently eliminated in 2022 as part of a broader reform package that also reduced tariffs on rice imports. Costa Rica’s policies continue to emphasise export-oriented agriculture, which has generated asymmetries between exporters and producers serving the domestic market. At the same time, greater policy attention is now directed at promoting productivity, innovation, and environmental sustainability, with a particular emphasis on small-scale farmers.

Table 10.4. 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; development of GHG mitigation measures for key sectors Small payments to farmers for environmental services Import tariffs persist for some agricultural products Major rice policy reforms: elimination of reference price and lower tariffs

Since 1995, producer support has fluctuated between 2% and 11% of gross farm receipts. Since 2021, it has remained below 5%. The volatility observed 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, although the share of rice in total MPS declined after 2023. Budgetary support to producers is limited and has changed little over time (Figure 10.7).

References

[6] FODESAF (2025), Informe De Ejecución Anual 2024 Programa De Alimentación Y Nutrición Del Escolar Y Adolescente (Panea), https://fodesaf.go.cr/acerca_del_fodesaf/transparencia/estudios_iice/Informe%20ejecucion%20anual%202024%20-%20PANEA.pdf (accessed on 11 March 2026).

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

[4] Ministerio de Hacienda (2026), Presupuesto Nacional en datos abiertos, https://www.hacienda.go.cr/docs/DatosAbiertos.pdf (accessed on 19 March 2026).

[8] OECD (2025), OECD Economic Outlook, Volume 2025 Issue 2: Resilient Growth but with Increasing Fragilities, OECD Publishing, Paris, https://doi.org/10.1787/9f653ca1-en.

[7] OECD (2025), OECD Economic Surveys: Costa Rica 2025, OECD Publishing, Paris, https://doi.org/10.1787/048cf07b-en.

[5] OECD (2020), Taxation in Agriculture, OECD Publishing, Paris, https://doi.org/10.1787/073bdf99-en.

[3] WITS (2026), UN Comtrade by country period [database], http://wits.worldbank.org (accessed on  February 2026).

[9] World Trade Organization (2025), World Tariff Profiles 2025: Costa Rica, https://www.wto.org/english/res_e/statis_e/daily_update_e/tariff_profiles/CR_e.pdf.

[2] WTO ITC UNCTAD (2026), World Tariff Profiles 2026, https://www.wto.org/english/res_e/publications_e/world-tariff-profiles-2026_e.htm.

Note

← 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.