Dzidzantún / México / Agriculture

Agriculture
Only 11% of Mexico's land area is arable, of which less than 3% is irrigated. Top revenue-producing crops include corn, tomatoes, sugar cane, dry beans, and avocados. Mexico also generates significant revenue from the production of beef, poultry, pork, and dairy products. In total, agriculture accounted for 3% of GDP in 2008, yet agricultural employment accounted for over 15% of total employment. Most of the population is employed in the services sector (60% of total employment).

Implementation of NAFTA has opened Mexico's agricultural sector to the forces of globalization and competition, and some farmers have greatly benefited from greater market access. In particular, fruit and vegetable exports from Mexico have increased dramatically in recent years, exceeding $4.7 billion to the United States alone in 2009. However, structural inefficiencies that have existed for decades continue to limit improvements in productivity and living standards for many in the agricultural sector. These inefficiencies include a prevalence of small-scale producers, a lack of infrastructure, inadequate supplies of credit, a communal land structure for many producers, and a large subsistence rural population that is not part of the formal economy. It is estimated that half of Mexico's producers are subsistence farmers and over 60% produce corn or beans, with the majority of these farmers cultivating five hectares or less, although the number of Mexican farmers is steadily decreasing as they seek greater economic opportunities from off-farm employment.

Mexico subsidizes agricultural production through various support programs, the most notable being the PROCAMPO initiative. The producer support estimate for Mexico is 13% of gross receipts, compared to 10% for the United States.