Guaranteed Price Program for Basic Food Products

The Guaranteed Price Program seeks to improve the income of small and medium-sized agricultural producers of basic grains and milk through guaranteed prices. The specific objectives are to ensure that small producers of corn and beans, as well as medium-sized milk producers, continue with their production. SEGALMEX and LICONSA are responsible for the collection and administration of guaranteed prices, with incentives offered directly to producers without intermediaries. Producers participate in the spring-summer and fall-winter agricultural cycles, with payments made according to budget availability. Guaranteed prices and maximum volumes per producer are established according to the productive cycle and the cultivated surface. The program also includes financial support for the transfer of corn and beans from small producers, and supplements to the guaranteed price if the market price is higher. In addition, there are incentives for the acquisition of risk management instruments for wheat and rice. The target population includes small producers of corn, beans and milk, defined by the number of hectares cultivated or heads of cattle.