In Costa Rica, legislative initiatives are being prepared to restructure the credit portfolios of small and medium agricultural producers affected by climate phenomena.
One of the initiatives includes the purchase of the credit portfolio to readjust the debts of producers affected by climatic phenomena and who are unable to pay. The credits that would be applied in this case would be those of $35,000 or less.
During August and September, Costa Rica's monthly agricultural activity index reported a 0.16% and 0.82% year-on-year increase, respectively, reversing the downward trend recorded in previous months.
According to data from the Central Bank of Costa Rica (BCCR), between October 2018 and July 2019 the Monthly Index of Agricultural Activity (IMAGRO) registered negative year-on-year variations.
The OECD has pointed to an overabundance of institutions: 11 institutes, 6 corporations, and 9 sectoral committees including organizations for children, young people and rural women.
Nacion.com explains that "...The OECD criticized the large number of institutions in the public agricultural sector and said that this complicates sectoral decision-making.An organizational chart requested of the Executive Secretariat for the Agricultural Sector Planning (Sepsa), attached to the MAG, shows that there are 11 institutions, six corporations (such as Corbana) and nine sectoral committees, among them the National Council Club 4-S "
Sectors related to metal mechanics, tires, plastics, chemicals and electrics in Costa Rica have asked for their products to be excluded in the negotiation of a regional trade agreement with the Asian tiger.
The industrial and agricultural sectors are those who have objected in the process for negotiation of a free trade agreement with South Korea, arguing that some products would be hurt by the arrival of similar products from China.
The sector that used to be the basis for the country´s economic and social development in the last century is now suffering from a severe crisis of profitability.
The President of the National Chamber of Agriculture and Agribusiness of Costa Rica, Juan Rafael Lizano, summarised the figures that account for the decline in the sector, noting factors such as greater fuel costs, the high cost of labor, and difficulties in access to credit.
Data from the last official survey indicates that the number of jobs in the sector fell from 285,076 in 2010 to 213,155 in 2014.
Data from the last official survey indicates that the number of jobs in the sector fell from 285,076 in 2010 to 213,155 in 2014.
Agricultural sector leaders asked the government to freeze wages in the second half, improve the availability of credit, and change the exchange rate policy to overcome the crisis that has worsened in the last year.
In 1998, the agricultural sector accounted for 14% of total domestic credit, compared to today where it currently accounts for only 3.5%.
The industry points out that the requirements and collateral demanded can not be met by most small and medium producers.
Of total the loans to productive sectors offered by the local financial system, only 3.5% are directed towards agriculture and agribusiness activities, said Juan Rafael Lizano, president of the National Chamber of Agriculture and Agribusiness (CNNA).
The newly approved project establishes tax calculations based on the historical value of the properties, not applying the rates developed by the Ministry of Finance in 2008.
The tables compiled by the Ministry of Finance "equate the value of agricultural land to urban and tourism projects, which made the price of farms engaged in agriculture go through the roof", reported Nacion.com
Complaints have been made about loss of competitiveness due to fuel costs being the highest in the region.
A study by the National Chamber of Agriculture and AgroIndustry (CNAA) states that in June the price of a gallon of diesel cost, on average, $4.71 in Costa Rica, $3.76 in Panama, $4.02 in Guatemala , $4.44 in Nicaragua , $4.15 in El Salvador , and $4.20 in Honduras.
The Costa Rican agricultural sector has reacted negatively to news of the consultation announced by the Costa Rican Trade Ministry.
Last Monday the ministry (Comex) gave notice to the agricultural sector of a consultation to review and eventually reduce import tariffs for some commodities. This received a strong reaction from the Costa Rican chamber of agriculture (CNAA).