The funds, $20 million for Guatemala and $10 million for Nicaragua, are part of a total of $42 million, which also includes Bolivia.
The support will run for three years, until 2011 and “it will finance measures to improve access to agricultural production means such as fertilizers, seeds, veterinary services, micro credit, rural infrastructure, training and support for professionals," according what was reported in the Finanzas.com website.
In turn, "it will also finance activities that will act as 'a safety net that will allow social transfers for vulnerable groups' often in the form of public works that require a large workforce, such as roads and irrigation projects."
The funds will be used to improve corn production and marketing support for small farmers.
According to Prensalibre.com, "at the same time that there will be a push for increased agricultural productivity, mainly for corn, support for the marketing of small farmer associations will also be given and there will also be an attempt to improve the income and conditions of subsistence farmers."
Besides buying red beans, black beans and rice, agreements have been made for the regulation of imports, seeking funding for the sector, and production insurance payments.
The agreement reached between producers and the Government of the country, states that the Institute of Agricultural Marketing (IMA by its initials in Spanish), will buy 50 thousand quintals of red beans at $65 per quintal, and 38,000 quintals of black beans at $45 per quintal.