Profitability and comprehensive competitiveness of grain corn in a municipality in economic transition

Abstract

Objective: to evaluate the profitability and economic, social, and environmental competitiveness of the production systems of native and improved grain corn under dryland and irrigation regimes in San José de Gracia, Aguascalientes.

Design/methodology/approach: for data collection, participant observation techniques, surveys and official sources from the National Foreign Trade Information System (SNICE) and the Tax Administration Service (SAT) were applied. A specific questionnaire was designed for grain corn producers in San José de Gracia to record production inputs and costs. The environmental (agrochemical reduction) and private assessment was carried out using the Policy Analysis Matrix Methodology (MAP). The social analysis was based on the SAGARPA-FAO methodology for intermediate inputs, considering variables such as tariffs, taxes, inputs, subsidies, insurance-freight costs, transportation costs, fuel prices, and exchange rates.

Results: 64.9% of grain corn production was profitable, competitive and efficient. The presence of agricultural policies and market distortions improved profitability by 37.43% and competitiveness by 12.08% in grain corn production; however, these indicators decreased by 20% and 5.3%, respectively, when environmental strategies were implemented.

Findings/conclusions: at market and economic prices, the improved irrigation system presented the greatest profitability and the Creole irrigation system, the greatest competitiveness. In the environmental analysis, the irrigated systems demonstrated competitiveness and profitability; however, these indicators were below the private assessment.