This article by Arturo Huerta González originally appeared in the November 5, 2025 edition of La Jornada de Oriente, the Puebla edition of Mexico’s premier left wing daily newspaper.
Neoliberal governments have prioritized lowering inflation with cheap imported grains, which has come at the expense of domestic producers, relegating food self-sufficiency, reducing economic growth, and increasing our dependence on capital inflows to finance growing imports. This has led to economic policy focused on promoting capital inflows through high interest rates and fiscal austerity, at the expense of economic policies that foster growth and employment.
The demands of corn producers have been primarily: 1) to remove staple grains from the USMCA and 2) to increase the price per ton to 7,200 pesos to cover their costs and avoid falling into over-indebtedness and defaulting on their loans. The demand to remove staple grains from the USMCA is to prevent imports from displacing domestic production, and the demand for a price of 7,200 pesos per ton of corn is to ensure that the price is set according to domestic production conditions and not according to the price set by the Chicago Mercantile Exchange, with which Mexican producers cannot compete and have ultimately been displaced.
In response, the Secretary of Agriculture and Rural Development (SADER) ignored the first proposal, stating it was a political matter. This demonstrates his political decision to continue favoring imports of staple grains rather than promoting domestic self-sufficiency in these products. He refused to set the price at 7,200 pesos per ton, prompting many producers to walk away from the negotiating table. He ultimately reached an agreement with those who remained at the table, namely producers from Jalisco, Guanajuato, and Michoacán. These producers will receive a subsidy of 950 pesos per ton, covered by the federal government (800 pesos) and state governments (150 pesos), bringing the total price, combined with the existing 5,200 pesos per ton, to 6,150 pesos per ton.
As long as basic grains remain in the USMCA, US exports will continue to displace domestic production, stagnate the economy, and fuel legitimate discontent and protests from staple grain producers and many others.
Furthermore, the Secretary of Agriculture offered loans to small and medium-sized producers at an interest rate of 8.5% . The official stated that this would “benefit producers with up to 20 hectares, representing between 96 and 98% of farmers in the Bajío region. In total, the production of 1.4 million tons of corn will be supported, with a limit of 200 tons per producer.” However, it should be noted that this does not resolve the problem faced by agricultural producers who have seen their production decline due to the lack of a supportive agricultural policy.
This has led to agricultural imports representing 48% of national production, given the trade liberalization and the prevailing cheap dollar. Annual corn production in the country fluctuates around 27-28 million tons, and the SADER program only supports producers who generate 1.4 million tons. The interest rate on the loans offered is higher than the growth of national income and the producers’ earnings, making it impossible for them to repay these loans.
The Secretariat also reported that “a specific marketing price will not be established to allow producers room to negotiate a better price.” By not setting a specific price, its determination is left to supply and demand in an open economy, where cheap imports prevent domestic producers from setting a price according to their conditions, leaving them as price takers in relation to the Chicago Mercantile Exchange.
Furthermore, the official indicated that a new Market Regulation and Marketing System for corn will be created to seek better prices. However, for this to be achieved, basic grains would have to be removed from the USMCA, something the government is not considering. The decision to continue importing these products is a political one by the government against domestic producers and in favor of US producers.
The country’s president continues her predecessor’s policy of not supporting Sinaloa’s major national producer. Government policy has focused on supporting producers with a maximum of two hectares, a policy geared towards self-sufficiency that fails to address the overall problems of the agricultural sector or achieve self-sufficiency in basic grains. Consequently, imports are necessary, thus favoring large US producers and perpetuating a policy that sacrifices food sovereignty and economic growth.
The President also said that the support would be granted “ without blackmail (…), because they were asking for so many things and we said: ‘this is what we can do, because we can’t promise things we can’t deliver.’” The farmers’ demands for a fair price and an end to importing staple grains to protect domestic production and advance food self-sufficiency and sovereignty are not “blackmail” and are not asking for “so many things.” Saying that “they can’t be delivered” implies that the government will continue to favor imports to avoid jeopardizing the USMCA , which means favoring US producers at the expense of food sovereignty.
As long as staple grains remain included in the USMCA, large corn flour companies like Minsa, Maseca, and Cargill will continue to rely on imports because they are cheaper, especially given the weak dollar that Banxico uses to reduce inflation. This will continue to displace domestic production, stagnate the economy, and fuel legitimate discontent and protests from staple grain producers and many others.
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