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Subsidies for Agricultural Producers in Mexico: 806 Million Pesos for Electricity

26 abril, 2026
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Subsidies for Agricultural Producers in Mexico: 806 Million Pesos for Electricity
Photo: Freepik.

As part of its subsidies for agricultural producers, Mexico allocated 806.5 million pesos for electricity support in 2024.

The Mexican government reported this domestic support to the World Trade Organization (WTO).

According to the Mexican government, in terms of coverage, this measure is primarily aimed at small-scale agricultural producers who rely on groundwater irrigation. 

Subsidies for agricultural producers in Mexico

The number of beneficiaries varies each year depending on weather conditions, water availability, and budget allocations. However, only a limited proportion of all Mexican agricultural producers benefit from this program. This is because it focuses on those who have access to irrigation systems that require electricity. 

Mexico’s Ministry of Agriculture estimates that more than 86,800 agricultural producers received a subsidy for electricity costs in 2024. Specifically, this subsidy is intended for pumping water for irrigation. 

According to INEGI’s 2022 Agricultural Census, there are 4.6 million agricultural production units in Mexico. This represents only 1.9% of agricultural producers.

Small farmers

With regard to the application of the criterion of “low-income or resource-constrained producers,” eligibility is determined in accordance with Mexico’s national rural development policies.

Beneficiaries are defined as producers who farm within a maximum land area limit and/or have limited access to capital and technology. 

In practice, this refers to small farmers with production units of less than five hectares, whose economic activity is predominantly agricultural and who rely on irrigation for food production. This ensures that assistance is directed toward producers with limited resources. Thus, it complies with the provisions of Article 6.2 of the Agreement on Agriculture.

Pesticides and Biodiversity

On September 3, 2025, as part of a national policy for the transition to safer and more sustainable agricultural practices, President Claudia Sheinbaum announced the ban on 35 pesticides that pose a high risk to public health and the environment.

Then, on November 18, 2025, the Ministry of Foreign Affairs issued a statement announcing Mexico’s participation in COP30 in Belém, Brazil, with the aim of promoting more robust climate action by advancing international commitments to reduce emissions and protect biodiversity.

 

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