Farmers Win 950 Pesos Per Ton of Maize Deal

Mexico City — Following a day of blockades on federal highways that affected thousands of people, an agreement was reached in the early hours of Wednesday between the federal government and farmers from Michoacán, Jalisco, and Guanajuato. The deal came after intense hours of negotiation with the Secretary of Agriculture, Julio Berdegué, and the Undersecretary of the Interior, César Yáñez.

According to the maize producers, the government offered a support payment of 950 pesos per ton of grain, leaving open the possibility of continuing to negotiate a higher guaranteed price. The agreed-upon scheme stipulates that the federal government will contribute 800 pesos per ton, while state governments will contribute an additional 150 pesos, providing direct benefit to the farmers.

With this support, farmers will receive 950 additional pesos for every one thousand kilograms of maize, independent of the final price at which they manage to sell their harvest. The next step will be negotiation with industrial buyers, where they will seek to improve the base purchase price, currently set at 5,200 pesos per ton.

And the Blockades?

Following the agreement, blockades that had persisted at various points across the country are expected to begin lifting starting this Wednesday. The Ministry of Infrastructure, Communications, and Transportation (SICT) had reported blockades on Tuesday at 13 toll booths and 12 highway sections. These intermittently affected freight and passenger transport, causing complications at bus terminals and delays for thousands of users.

According to data from the Grupo Consultor de Mercados Agrícolas (GCMA), production costs have increased by nearly 50% over the last five years, while maize prices—a staple of the Mexican diet—have fallen between 30% and 50% from their 2022 highs.