Sunday, May 18, 2014

Confusing Rhetoric


Mexico

The Secretary of the Interior of Mexico, Miguel Ángel Osorio Chong, has publicly stated that the Mexican government is going to support Mexican lime farmers that have been devastated by bad growing weather and a virus that has attacked lime crop. The Secretary is suggesting the government  offer no-interest loans to farmers that have been affected by the crop with no stipulations they grow limes.

It is confused with this kind of rhetoric coming from the Secretary. What incentives are there for the farmers to continue growing limes? This policy runs the danger of inadvertently allowing farmers to switch crops and grow high-profit crops, legal or illegal. The market reacted negatively to the suggestion by the Secretary.