Amérique latine : un paysage contrasté des soutiens publics à l’agriculture

L'FARM Observatory highlighted the great disparity in levels of public support for agriculture in Latin America. What are the reasons for this, and what are the major agricultural and political challenges facing this region? Carmine Paolo De Salvo, a rural development expert at the Inter-American Development Bank (IDB), sheds some light on the situation.

FARM Foundation: Why are agricultural support levels in Latin America so low?

Carmine Paolo De Salvo: Levels of public support vary considerably across South America. The most competitive agricultural regions, such as Brazil, Argentina, and Paraguay, receive little or no support. (editor's note: it amounts to 4 %, -18 % and 2 % of the value of agricultural production respectively)Argentina, for example, imposes taxes on agricultural exports.

Unlike these major agricultural exporters, other agri-food importing countries are taking protective measures to support their agriculture. This is the case in Colombia, Peru, and Bolivia, three countries on the west coast. These measures take the form of trade barriers, while the public budget allocated to agriculture remains quite limited. This observation is similar in Central America, where budgetary support for agriculture is low and often offset by the implementation of border restrictions.

FF: The Covid-19 pandemic has had consequences for public funding in Latin America. What has been the impact on the agricultural sector?

CPS: The impact was considerable, unfolding in three successive phases. Initially, during the first year, agriculture was considered an essential sector and experienced relative stability in terms of production. From the second year onwards, the situation worsened, with impacts on all value chains and distribution difficulties. Financial resources were mobilized as a priority to respond to the health emergency, which resulted in a reduction in public budgets allocated to agriculture in the countries of the region. Finally, the third phase was marked by a significant increase in food insecurity, which accelerated more rapidly than in other regions of the world.

FF: After this pandemic, food security poses major challenges for Latin America, although the prospects for support are limited...

CPS: Indeed, significant changes in the current form of agricultural support in this region are unlikely. However, to ensure food security, it is essential to make greater budgetary efforts to improve food availability. Countries in the region can take advantage of their margins for increased production to strengthen their food sovereignty. However, climate-related issues impose significant limits on agriculture, and these efforts must take these constraints into account.

FF: Even though it is responsible for a significant share of greenhouse gas emissions, can agriculture play a key role in combating climate change in the region through sustainable agricultural practices?

CPS: Environmental protection is increasingly being integrated into agricultural policies in Latin America. Many countries have implemented programs to encourage more sustainable agricultural practices to reduce greenhouse gas emissions and preserve biodiversity. For example, Uruguay has launched a national sustainable land management program that aims to promote sustainable agricultural practices and reduce greenhouse gas emissions in the agricultural sector. In Costa Rica, payment for environmental services programs are in place to incentivize farmers to adopt sustainable agricultural practices and preserve biodiversity. Similarly, Peru has implemented policies to encourage sustainable land management and the reduction of greenhouse gas emissions, particularly through reforestation and forest protection programs. In summary, although the importance given to environmental protection in agricultural policies varies, more and more countries in Latin America are becoming aware of the importance of promoting sustainable and environmentally friendly agriculture.