Area Of Shaded Segment Circle

AGRICULTURAL FINANCE IN MEXICO

By Juan Fernando Perdomo *

With the participation of all types of national and local, farmers and industrialists of the agriculture sector, including: Coffee, Sugar, Corn, Barley, Agave, ... and rural financial intermediaries, held the Third Forum on Financing for Agricultural Development made by the Senate. There



, Senator Dante Delgado, Chairman of the Special Commission to determine the causes low funding for Development, said that if general funding for development is a heartfelt concern of the Senate, particularly the financing for agricultural development and agribusiness means a special concern.



This, he said, is due to the following reasons:



In rural and productive activities of the Agriculture, Livestock, Forestry, Fisheries and Agribusiness live more than 24 million Mexicans in the last 10 years have been marginalized from the benefits and access to credit.



From 1998 to 2005, the U.S. agricultural sector in North America our main trading partner, grew by 51% subsidies to reach 133.000 million dollars in Mexico grew by 24%, but only come to 7.300 million, ie U.S. grants 18.2 times more subsidies than Mexico.



The credit granted in general, the development and commercial banks fell from 61.6% of GDP in 1994, only 20.3% in 2007.
But Agriculture increased from 2.19% to 0.14%, and livestock was 1.31% to 0.13%.



All this, said Senator Dante Delgado, in an international environment in which food becomes not only scarce and thus expensive, if not strategic.



For his part, Senator Heladio Ramírez, President of the Rural Development Commission, said that for "25 years left field production processes and farmers, are in need of selling or leasing their land, before dying in poverty. "




organizations realize that the Bank is not profitable to the field so that the financing of commercial banks has fallen by half, the Development Bank for a quarter and suppliers are responsible for financing, unintentionally, to the field.



But, especially, the field has fallen, 2007, almost one eighth of funding, contrary to what was granted in 1998.



reflection of the audience is missing public policy for our country and, in particular, note that "without funding there can be no production and no funding in line with national priorities, there can be no growth for social, economic, technology, competitiveness and quality of life, which is manifestation in the progress and welfare. "



Peasants in the voice of Cruz Lopez de la CNC, regretted that the Development Bank has become a "banking risk" and only given to those who have the guarantees to support the payment.



For its part, the National Agricultural Council (CNA), through its President, Jaime Yesaki, said the field reacts more slowly than other sectors, thus requiring appropriate credits that could help reduce the technological gap.



But he also pointed to the disadvantage that exists in the payment of inputs from our business partners, the low level of production by size of land (60% of the land is divided in 2 hectares) and the lack of generation of value, to make the field profitable.



and noted that "public institutions building as a whole have not fully complied with the institutional goals that will determine their respective organic laws ", according to the Federal Superior Audit.



Therefore, the attendees were in favor of:

a) Increase Funding to Agriculture Sector;

b) Financial intermediaries with attractive rates;


c) Prevent the exodus from the countryside, creating jobs rural areas;

d) Consolidate Funds dedicated to the field and


e) The creation of a Rural Finance System.



and asked the Senate to mandate Federal Government that its proposals are not only heard, but are carried out.




* Juan Fernando Perdomo is a graduate of Tec de Monterrey.
public servant, businessman and politician ( jperdomo@infosel.net.mx )
www.perdomo-blog.blogspot.com