Maize production declined from 20.4 million hundredweight in the 2012/13 harvest to 15.6 million in the 2015/16 cycle, and yield per cultivated hectare has also declined.
In the case of beans, figures from the Ministry of Agriculture and Livestock (MAG) show greater variability, depending on the bean and crop variety, as some have reported better results.However, bean productivity has deteriorated in recent harvests. Laprensagrafica.com reports that"... performance went from 15.1 hundredweight per hectare on average in the 2014/15 season, to 13.1 in the 2015/16 cycle."
The interest rate rise in the US and the perceived risk of the Salvadoran economy have taken their toll on foreign debt bonds, whose yields have risen by about 2% in recent weeks.
This increase in yield of debt securities traded on the international market will be reflected in the forthcoming issues made by the government, which, according to economic analyst Mauricio Choussy, "...
A request has been made that the interest rate paid by the government for using funds from the Pension Trust Bond rise from 1.3% to 7.5%.
Elsalvador.com reports that "... The leaders of the Committee requested yesterday that a new article specifically state that pension funds earn the passive base interest rate used for investments of 180 days and published by the Central Bank plus 3.5% ..
In Nicaragua peanuts, sugar cane and tobacco have been held up as examples of how productivity can be increased in agriculture.
In 2006 one hectare of sugar cane in Nicaragua produced 66 tons, and five years later, in 2011, it produced 89 tons. Improvements in the use of technology and the search for the most suitable varieties of canes are part of the strategies that have enabled the industry to achieve outstanding levels of performance when compared with other countries in the region.
The interest rate that the Government of El Salvado pays for money from the Pension Funds is not more than 1.3%, while international investors are paid more than 7%.
Ricardo Soriano, Chairman of the Committee for the Defense of Workers Pension Fund of El Salvador (Comtradefop) reported that since the year 2006, the State has forced the Pension Fund Administrators (AFP) to invest the money belonging to Salvadoran workers in Pension Certificates, initially 30% and the 45% in 2012, money which has suffered a loss greater than $938 million each year.
Workers savings in El Salvador are being invested in government securities with low returns.
Laprensagrafica.com reports: "Pension Fund Administrators (AFP's by their initials in Spanish), have invested between 70% and 80% of the fund in public debt from different institutions. The central government uses this money to pay those who retired under the previous system." However, profitability has been low, this is because the law hinders the AFP's options.
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If we analyze the labor scene 50 years ago, we find a very different reality today. At that time, work was more structured than it is today and, barring a few occasions, it was unthinkable to have flexible working hours.
Given the low returns from pension funds in El Salvador, there is discussion on removing the requirements for operators in order to invest in more instruments.
The pension fund administrators (AFP in Spanish) and the government are exploring alternatives for increasing the profitability of the pension savings system.
Currently, the AFP is required to ensure that each investment destination has dual risk rating and is registered for that activity in El Salvador. One possible reform would make external certification by an investment fund manager enough requirement to invest.
In a scenario of rising interest rates, the strategy to follow by investors should be of more activity.
Aldesa´s analysts explained in their blog, Pulse Securities, that when interest rates are falling, the investment advice is to invest soon and long-term, in order to ensure presumed higher performances than those available in the future and during the period of low interest rates.