Guaranteed prices and their effects on small-scale farms in Mexico.
DOI:
https://doi.org/10.22231/asyd.v20i2.1565Keywords:
causal inference, strategic program, subsidy, small-scale farmersAbstract
Since 2019, with the implementation of the Guaranteed Prices Program for basic food products, the government established a plan linked to the volume of corn production with which it acquired the grain from small-scale farms at a higher price than the market’s, with the intention of improving the income and increasing the national production. The difference-in-differences and matching method was used to test whether public intervention had the desired effect on the production surface of the recipients. With the estimations, evidence was found that the decrease in corn surface between 2018 and 2020 was a general characteristic for all producers in the country; however, the program helped to decrease the reduction of the surface cultivated by its recipients. Likewise, it was found that the increase in income of recipients is due mainly to the increase in the price of the product, rather than an increase in the volume produced as consequence of the expansion of the surface cultivated.
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