Mexico: 2022 Budget Increases Agriculture Allocation, Mostly for Small Farmers

On November 10, 2021, the Mexican legislature approved the 2022 federal government budget, allocating roughly US $2.7 billion to the Secretariat of Agriculture and Rural Development (SADER), an increase of 13 percent over SADER’s 2021 budget. Approximately 70 percent of the increase is for fertilizer subsidies (+172 percent) and government milk purchases (+ 85 percent), two of President Lopez Obrador’s priority programs. SADER’s 2022 budget allocation reflects the current administration’s focus on improving the livelihoods of small producers in Mexico’s southern and central regions rather than providing support to large-scale producers.