Assessing the benefits of a fertilizers program for the welfare on the corn (Zea mays L.) market in Chiapas, Mexico

Resumen

Objective: To assess the impact that the Fertilizers Program for the Welfare would have on corn production and consumption in the state of Chiapas, Mexico.

Methodology: A spatial equilibrium model applied to the corn market in the state of Chiapas for 2018 was used. To assess the benefits of policy implementation, producer and consumer surpluses were calculated with and without the Fertilizers Program.

Results: The results indicate that the implementation of the program increases production and consumption of corn by 171 and 115 thousand tons, which would represent an increase of 13 and 8.3%, compared to the base model with no program. The producer and consumer surpluses would increase by 6 and 4.5 million pesos (MXN), which would represent an increase of more than 10 million pesos in the welfare of society in the state.

Study limitations/implications: The positive effects on corn producers and consumers imply that the policy should be extended to all those regions that have the potential to increase production via their yield.

Conclusions: The program has positive effects on the corn market by increasing corn production, consumption and societal welfare.

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