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Mexico’s Farm Leaders Say One-Fifth of Cropland Lies Fallow as Crime and Credit Woes Bite

Rising extortion and scarce financing are inflating costs across the food chain, prompting producers to press for a federal rescue plan.

Overview

  • The National Agricultural Council (CNA) reports that roughly 20% of Mexico’s farmland is no longer being planted, citing insecurity, migration, water uncertainty and sanitary threats as key drivers.
  • Extortion linked to organized crime is adding about 10% to 20% to final food prices, with the impact varying by product and region, according to CNA president Jorge Esteve.
  • Producers describe more sophisticated shakedowns, including fees per hectare or per ton and pressure to buy inputs from designated suppliers, with criminal quotas folded into irrigation and transport costs.
  • Security spending has increased for cameras, guards and truck escorts, and transport insurance has become costlier or unavailable, with premiums sometimes reaching up to 25% of a vehicle’s value.
  • Sector leaders call for restored supports, price coverages and modernization as they flag limited credit access (about 8% of farmers) and high interest rates of 18%–20%, and they estimate export-related losses exceeding $2 billion tied to a drop in cattle shipments.