USDA/FAS GAIN report MX 6060

Mexico, NAFTA and agriculture, a snapshot

Report Highlights

Mexico implemented a number of reforms during the late 1980s and early 1990s that affected the agricultural sector and culminated with the signing of the North American Free Trade agreement. Mexican agriculture has since undergone a number of changes. Rural poverty rates have declined; exports, area planted, and farm size have increased; diversification into higher value crops has occurred, all suggesting healthy development of the agricultural sector. At the same time, farmer numbers, agricultural employment, and real farm prices have all dropped, while imports have increased, freeing significant supplies of agricultural labor. Unfortunately, Mexico’s economy has not grown fast enough to absorb excess agricultural labor. Record remittances from abroad and agricultural subsidies have helped to augment incomes in rural areas, however, the future of rural areas likely lies in economic development rather than agricultural development.

Full report in PDF format: http://www.fas.usda.gov/gainfiles/200607/146208468.pdf