Mexico

IFAD Asset Request Portlet

Country

Mexico

12

Projects Includes planned, ongoing and closed projects

US$ 529.86 million

Total Project Cost

US$ 252.34 million

Total IFAD financing

143,205

Households impacted

The Context

Mexico is the second-largest economy in Latin America. Despite being a large, upper-middle-income country, Mexico continues to have high rural poverty levels and wide social and economic disparities. While only about 25 per cent of the population lives in rural areas, they represent roughly two thirds of the extremely poor.

Disparities are more marked in rural areas, where 61 per cent of the indigenous population is extremely poor, compared with only 19 per cent of the non-indigenous rural population. Although at least 6.7 million Mexicans speak one of the country’s 89 indigenous languages, indigenous peoples are poorer than the non-indigenous population.

Mexico's agriculture sector is facing increasing vulnerabilities and a degraded natural resource base. Rural people are constrained by limited human and social assets, inadequate production-related investments and value-adding infrastructure, scarce financial resources and services, weak public-sector technical assistance and poor access to markets. These constraints result in low productivity, depressed consumption and incomes, and poverty.

A key factor in the sector’s performance is a lack of smallholder access to financing. Although Mexico has various national development banks, access to rural finance remains a challenge. Recent government data indicate that fewer than 3 of every 10,000 poor rural households have access to credit.

Crops that are key to the smallholder economy, such as coffee and seasonal white corn, are frequently exposed to shocks such as climate-related events or market imperfections. The country also faces vulnerability to climate-related disasters exacerbated by inappropriate agricultural practices.

The Strategy

In Mexico, IFAD loans give priority to climate change, with special emphasis on adaptation strategies for smallholders, and to activities that support economic opportunities for indigenous peoples, rural young people, and poor rural households headed by women.

In its efforts to reduce poverty, IFAD addresses the slow productivity growth in agriculture and the smallholder and farmer (campesino) sector, the slow progress on reducing rural poverty and food insecurity among rural households and the regressive public spending on agriculture and poor quality of the fraction invested in smallholder farmers and campesinos.

Key activities include:

  • helping smallholder farmers and campesinos significantly increase their productivity by strengthening their assets, organizational and other capacities, and increasing their access to goods and services markets, and to public services; and
  • contributing to the Government’s efforts to make public spending on smallholder farmers and campesinos more efficient and equitable, particularly with regard to coordination, design, service quality and relevance, impact and sustainability over time, beneficiaries’ organizational capacity, social participation and transparency, and synergies with social policy.

Results-based country strategic opportunities programme (COSOP) Arabic | English | French | Spanish

Country Facts

  • Mexico is a middle- to high-income country with the second-largest economy in Latin America and the Caribbean.
  • A key factor in the agricultural sector’s performance is a lack of access by smallholders to financing.
  • Since 1980, IFAD has invested a total of US$185.2 million in 10 programmes and projects related to agricultural development in Mexico, benefiting 143,205 households.

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Projects and Programmes

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El FIDA centrará su actividad en México en promover la inclusión económica activa de la población rural más pobre y vulnerable

May 2020 - NEWS
El Fondo Internacional de Desarrollo Agrícola (FIDA), el organismo especializado de las Naciones Unidas para el desarrollo rural, ha validado su estrategia de actuación hasta 2025 en México. En ella se fija como principal objetivo promover la inclusión económica activa de la población rural para luchar contra la pobreza.

IFAD President to commit support to Mexico’s agenda on rural poverty reduction

November 2017 - NEWS
Gilbert F. Houngbo, President of the International Fund for Agricultural Development (IFAD), will meet with high-ranking officials of the Mexican government on 24 November to discuss IFAD's support of Mexico’s agenda on rural poverty reduction, as well as its roadmap to achieve the Sustainable Development Goals within the 2030 Agenda.

UN agency to support Mexico project linking social assistance with rural development programmes

August 2016 - NEWS
Rome, 11 August 2016 – The International Fund for Agricultural Development (IFAD), the United Nations agency for rural development, and the Government

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Rural youth, innovation and tradition: the challenge of a new order

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In the midst of the COVID-19 pandemic, the reinvention of the agricultural sector is indispensable today. In fact, it is already beginning to take place with young people at the heart of it.

Recipes for change: Pollo Pibil

November 2016 - STORY
Try the Recipe at home: Pollo Pibil - Mexico

World Bee Day - High-altitude honey

May 2019 - STORY
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Closing the gaps: Public policy note for the inclusion of a gender and intercultural perspective in agriculture and rural development

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The purpose of this note is to support dialogue to consider the gender equality approach and the cultural approach in policies for food security, productivity, and rural development.

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Deforestation and unsustainable management practices have had a significant impact on the livelihoods of poor rural communities in the forest areas of Campeche, Chiapas and Oaxaca states in Mexico.

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Territorios Productivos - transforming rural policies in Mexico

April 2018 - VIDEO
In 2014, IFAD and the Mexican government piloted a new policy approach that goes beyond cash transfers to help eradicate rural poverty. Through this pilot project, designed and implemented in partnership with the Centro Latinoamericano para el Desarollo Rural (RIMISP), poor, rural families – those who receive the small monthly social security payments – for the first time have been able to access Government’s agricultural support programmes and have increased their productivity and incomes.

Chris Davis: A fair change experience

March 2016 - VIDEO
Chris Davis, Fairtrade International: Good morning. I would like to take you back in time 25 years to Oaxaca State in Mexico. A very sudden and rapid drop in world coffee prices as a result of subsidized overproduction, forced thousands upon thousands of small farmers to abandon their farms and migrate in search of work. Behind them, they left broken families and shattered communities

Reducing childhood malnutrition in Mexico

April 2016 - VIDEO
Date: 19 April 2016 Once a sacred grain for the Aztecs, amaranth and its incredible nutritional properties have long been forgotten in Mexico.