Subsidios gubernamentales para riesgos de mercado en granos: el caso del sorgo en México

Abstract

In a context of extreme price volatility related with agricultural commodities, as the one present during the last years, the producer protection is very relevant. For this purpose, the Mexican government established a program called contract farming, which characteristics and limitations is the object of this study. We found that the program offers important benefits to the participants, although is very vulnerable given the contract breach related to climatic disasters, the relation between prices (international vs. domestic) and the evolution of the exchangerate. Other obstacles of the program are the reduced national coverage and the concentration of subsidies in a reduced group of beneficiaries,among them relevant agribusiness.