Corn producers: the 3 main supports in Mexico

The Mexican federal government’s main supports for corn producers are guarantee prices, Production for Well-Being and Fertilizers for Well-Being.

Corn producers

Guarantee Prices

The establishment of guarantee prices for corn has helped small and medium-scale rural producers to have a better income for the work they do.

From September 2020 to June 2021, the collection of grain for the spring-summer 2020 cycle (May-October) was carried out, benefiting 51,525 producers with 4,025 million pesos, through the purchase of 700,067 tons.

Segalmex has carried out collection work through 538 centers for the reception of corn and bean grains, distributed in 29 states (except Baja California, Baja California Sur and Mexico City).

With the amount of white corn produced, the country continues to be self-sufficient in this essential foodstuff in the Mexican diet.

However, it remains a major importer of yellow corn for processing or livestock feed purposes.

Production for Welfare

The Mexican government also gives Direct Productive Support, without intermediaries to provide liquidity to producers, for investment in productive activities on their farms or production units.

In 2021, 1 million 580,880 small-scale corn producers were supported.

In addition, support is provided through virtual or face-to-face training and education plans on topics such as soil nutrition with an agroecological approach, soil management and conservation, among others.

Fertilizers for Well-Being.

This support is granted to small-scale producers, prioritizing the most vulnerable in priority corn crops.

Most of the fertilizer delivered to producers was applied to the corn crop, to which 97.2% of the fertilizer delivered was applied.

Corn and feed producers

The price of sorghum, soybean meal and corn is subject to significant volatility resulting from many external factors such as weather conditions, crop size, and transportation and storage costs, among others.

To reduce the potential adverse effect of grain price fluctuations, Industrias Bachoco, for example, varies the composition of its feed to take advantage of the current market prices of the different types of ingredients used.