Area
Mexico
Commodity Group
Oilseeds, oils and meals
Commodity
Oilseeds
Date
01/05/2018
Policy Category
Production
Policy Instrument
Agricultural policy
Description
Renewed national programmes designed to i) encourage domestic oilseed production (Pro-Oleaginosas); ii) provide farmers with liquidity to invest in productive activities (Proagro); and iii) stimulate forward sales.
Notes
Mexicos federal programme to encourage domestic oilseed production (known under the name Pro-Oleaginosas) remains in place in 2018, with producer payments staying at MXN 700 (USD 35) per tonne of product delivered to domestic processors (as opposed to MXN 1500 provided two years back). Proagro, a scheme providing farmers with liquidity to invest in productive activities has also been confirmed, with per-hectare allocations for small, medium-size and large farm holdings raised by, respectively, 14 percent, 33 percent and zero percent. While a government scheme to stimulate forward sales also remains in place, market participants are reported to favour better-priced alternatives offered by the domestic and international market.
