Law No. 28062: Law on the Development and Strengthening of Agricultural Producer Organizations

Law No. 28062, published on August 23, 2003, establishes a legal framework to promote the establishment, development and strengthening of agricultural producer organizations voluntarily formed by farmers and livestock producers as private-law legal entities. The law allows these organizations to establish agricultural funds through voluntary contributions from their members to strengthen organizational capacities and improve production, productivity, research, quality, machinery and services related to the processing, industrialization and marketing of agricultural and livestock products. The funds may be organized by production line or geographical area and financed through direct contributions or resources derived from collective product marketing. Their administration and oversight are entrusted to committees appointed by the agricultural organizations themselves. The law expressly provides that the State does not participate in the administration or allocation of these funds and assumes no liability for their contingencies, results or indebtedness. It also provides for the recognition and support of agricultural organizations by national, regional and local governments. The law allows state-owned real estate to be granted to eligible organizations under administration, use assignment or usufruct arrangements, subject to applicable legal procedures. For PAESA purposes, its principal policy instruments are the legal recognition of agricultural organizations and the promotion of associative self-financing mechanisms. The law does not establish a public agricultural credit program, government subsidies, publicly funded technical assistance or direct budgetary transfers.