Evaluation of producer inflation, subsidies and profitability of vegetables and grains in Sinaloa, 2018-2019

Resumen

Objective: To evaluate producer inflation, equity in PROCAMPO subsidy distribution, as well as profitability of eight agricultural products in the state of Sinaloa, 2018-2019 cycle.
Design/Methodology/Approach: First, inflation is estimated in the value of agricultural production, using the agricultural producer price index (INPP) base 2019. Second, the inequality in the allocation of PROCAMPO is calculated with Lorenz curves. Third, the internal rate of return (IRR) is estimated for the eight products and compared with the 28-day yield of the treasury certificates (CETES).
Results: The current values generated show growth in cereals (corn, wheat), and vegetables (tomato, chili peppers), with downward inflationary gaps in the period 2000-2019. There is a concentration of the PROCAMPO allocation in producers
with high income deciles. The IRR is high in vegetables, and low in corn and beans.
Study Limitations/Implications: This study does not specify the size of the productive unit and only the data is generalized. It does not address marketing channels and their destinations.
Findings/Conclusions: The producer is assuming the inflationary increase. Income transfers via PROCAMPO are
inequitable. The IRR in corn and beans is sometimes less profitable than CETES.