Mexican Government Secures Agreement with Bajio Corn Producers for Financial Support and Crop Insurance
Mexican Government Reaches Historic Agreement with Bajio Corn Producers
Bajio Region, Mexico — In a significant move to support local agriculture, the Mexican government has finalized an agreement with corn producers from the Bajio region, which includes Jalisco, Guanajuato, and Michoacan. Announced early Wednesday by Julio Berdegué, Minister of Agriculture and Rural Development (SADER), the deal promises direct financial assistance, preferential loans, and crop insurance coverage aimed at bolstering the livelihoods of local farmers.
Under the new agreement, corn producers will receive a direct payment of MX$950 (approximately US$51.63) per ton of corn. This financial support comprises MX$800 from the federal government and MX$150 from state governments, supplementing the price farmers negotiate for their crops. The guaranteed base price for corn has now been set at MX$6,150 per ton, a response to producers’ earlier rejection of a proposed floor price of MX$6,050.
Berdegué emphasized that the agreement was formalized in a signed memorandum supported by the majority of agricultural representatives in the region. “This is a crucial step towards ensuring the sustainability of our corn producers,” he stated during President Claudia Sheinbaum’s morning press conference.
Following the announcement, highways in the Bajio region, which had been blocked by protesting farmers, are expected to reopen. On Tuesday, farmers had already allowed partial access for essential vehicles, describing it as a “gesture of goodwill” after productive negotiations with senators.
However, tensions remain high in other regions, particularly Sinaloa, where protests are expected to continue. Demonstrators have threatened to extend their movement to U.S. border crossings to draw international attention to their grievances regarding the agreement.
The new support measures will benefit approximately 90,000 producers with plots of up to 20 hectares, covering up to 200 tons per farmer. Berdegué noted that current international corn prices hover around MX$3,400 per ton, and when logistics costs are factored in, they reach about MX$4,850—insufficient to cover production costs for many Mexican farmers.
Additional measures include the expansion of the Cosechando Soberanías (Harvesting Sovereignty) program, which will offer loans at an annual interest rate of 8.5%, significantly lower than commercial bank rates. Furthermore, crop insurance will be introduced for the 2025 spring-summer cycle of white corn, protecting farmers against losses from droughts, floods, or pests.
Berdegué also revealed that, under President Sheinbaum’s directive, work is underway to design a national corn marketing and management system. This initiative aims to establish reference prices, promote direct agreements between producers and the industry, and enhance transparency in the marketing chain.
President Sheinbaum reiterated her commitment to ensuring that all support reaches producers directly, without intermediaries. She also highlighted that major corn flour companies had previously agreed to purchase corn at prices above international market levels, following negotiations led by SADER.
Looking ahead, the government plans to launch an additional support program in 2026 for producers cultivating native corn, particularly in southern and southeastern regions. “We want to preserve native corn because it represents Mexico’s biodiversity and cultural richness,” Sheinbaum stated.
As the agreement unfolds, the Mexican government aims to stabilize the agricultural sector and ensure a sustainable future for its corn producers, a vital component of the nation’s economy and cultural heritage.
