Background on Julio Berdegué and His Role
Julio Berdegué, the head of Mexico’s Secretariat of Agriculture and Rural Development (SADER), played a crucial role in resolving recent disputes between corn producers and the government.
As the Secretary of Agriculture, Berdegué has been instrumental in addressing agricultural issues and ensuring food security for Mexico. His expertise and dedication to rural development have made him a key figure in the Mexican government’s efforts to support farmers.
Key Details of the Agreement
Direct Support for Corn Producers:
During the early hours of Wednesday, the Mexican government reached an agreement with local leaders of corn producers in Jalisco, Guanajuato, and Michoacán. The agreement includes a direct support of 950 pesos per ton of corn, jointly financed by the federal government and state governments—800 pesos from the federal government and 150 pesos from the states.
- Beneficiaries: The support will benefit approximately 90,000 producers with plots of up to 20 hectares, who account for nearly 98% of total production in the Bajío region.
- Coverage: The benefit will cover up to 200 tonnes per producer.
Global Context and Price Pressure:
Berdegué explained that the agreement comes in response to a global situation affecting Mexican farmers’ incomes. There has been an increase in the world’s corn availability, with a record stock of 1.3 billion tonnes. Additionally, Mexico is expected to have a high corn yield this year, which has driven international prices down.
- International Corn Price: The current international price for corn is around 3,400 pesos per tonne. Including logistical costs, the total reaches 4,850 pesos, which does not cover production costs for many Mexican farmers.
Additional Measures in the Agreement
Expanded “Cosechando Soberanías” Program:
The agreement also includes expanding the “Cosechando Soberanías” program, offering credits at an annual interest rate of 8.5%—half the rate charged by commercial banks—and agro-industrial insurance covering losses from droughts, floods, or pests.
Sistema Mexicano de Ordenamiento de Mercado y Comercialización del Maíz:
The Mexican President Claudia Sheinbaum instructed the creation of a system to establish reference prices, direct agreements between producers and industry, and clear rules for transparency in the corn marketing chain. This aims to ensure farmers know their selling prices before planting.
Reactions and Next Steps
Producer Expectations:
According to Berdegué, producers do not want a fixed price as they hope negotiations will push prices up. Large flour companies have already agreed to buy corn at prices above the international market rate, following negotiations led by SADER.
Future Support for Native Corn:
President Sheinbaum announced additional support for producers continuing to grow native corn, particularly in Mexico’s south-eastern regions, by 2026. This support aims to preserve native corn varieties, which represent biodiversity and cultural richness in Mexico.
Lifting of Roadblocks:
As part of the agreement, local leaders have started to remove roadblocks that were set up in various locations across the country in recent days.
Key Questions and Answers
- Who is Julio Berdegué? Julio Berdegué is the Secretary of Agriculture and Rural Development (SADER) in Mexico, responsible for addressing agricultural issues and supporting farmers.
- What is the agreement about? The Mexican government agreed to provide direct support of 950 pesos per ton of corn to approximately 90,000 producers in Jalisco, Guanajuato, and Michoacán.
- Why was this agreement necessary? The global increase in corn availability and Mexico’s expected high yield have driven international prices down, affecting farmers’ incomes.
- What other measures are included in the agreement? The “Cosechando Soberanías” program will be expanded, offering credits at lower interest rates and agro-industrial insurance. A new system will establish reference prices, direct agreements between producers and industry, and transparent marketing rules.
- What will happen next? Local leaders have started removing roadblocks set up in recent days, and additional support for native corn producers will be provided by 2026.
