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4.4. The National Development Plan (PND) 2019-24 is the key planning document for setting national public policy priorities, and together with the Sectoral Programme for Agriculture and Rural Development 2020-24, it lays down the development goals for the sector. The PND sets the goals of achieving food self sufficiency and "saving the countryside"; accordingly, the first goal of the sectoral programme is to increase food production, especially of staple grains, meats and milk, by incorporating technologies that will raise productivity and competitiveness while supporting sustainability and inclusion. (...)

4.5. Another sectoral programme goal is to "increase sustainable production practices in the agricultural, aquaculture and fisheries sector in view of agro-climatic risks". In 2017, only 46.2% of producers followed at least one sustainable practice. The Plan proposes that at least one sustainable practice should be adopted by 75% of agricultural producers in order for Mexico to meet its commitments under the Paris Agreement. The Plan also sets a goal of building the resilience of at least 50% of the municipalities most vulnerable to climate change, establishing early warning and risk management systems at all levels of government and achieving a net deforestation rate of 0% by 2030. Despite these efforts, some studies point to the need to address particular challenges in relation to sustainable agricultural production. For example, according to the OECD, distributing free fertilizers under the Fertilizers for Well-being programme without considering the needs of the soil can adversely affect water and air quality. Moreover, according to the Sectoral Programme for Agriculture and Rural Development 2020-24, the water stress experienced by Mexico is chiefly the result of intensive water usage (77% of fresh water is used for crop irrigation).

Table ‎4.2 Legislation in the agricultural sector, 2021
Legislation- Law on Sustainable Rural Development; Publication in the DOF/Latest amendment- 07.12.2001/03.06.2021;
Legislation- Law on Organic Products; Publication in the DOF/Latest amendment- 07.02.2006;
Legislation- Law on Biosafety of Genetically Modified Organisms; Publication in the DOF/Latest amendment- 18.03.2005/06.11.2020

Table ‎4.3 Main institutions responsible for the agricultural sector, 2021
Institution - National Aquaculture and Fisheries Committee (CONAPESCA);
Main functions - Propose and coordinate national policy for the sustainable development of fisheries and aquaculture resources, and for the development and promotion of fisheries and aquaculture activities. Implement the legal provisions concerning the use, development and conservation of fisheries resources and the development of aquaculture.
Develop policies, and technical assistance and training programmes on health.

Table ‎4.3 Main institutions responsible for the agricultural sector, 2021
Institution - National Seed Inspection and Certification Service (SNICS);
Main functions - Encourage, promote, organize, coordinate and deal with activities concerning the production, grading, certification, conservation, analysis and marketing of seeds.

4.17. (...), on occasion a given product or activity receives support under more than one programme, for example the Guaranteed Prices Programme for Basic Foods (PGPAB) and the Social and Sustainable Agricultural Markets Programme (AMYS), although the latter was apparently in place only in 2019. It is not clear how the programmes relate to each other in such cases, as under the rules, where there is duplication of products or components, only the benefits granted under one of the programmes may be utilized. (...)

Table ‎4.4 Agricultural support programmes
Agriculture, Livestock, Fisheries and Aquaculture Promotion Programme
Body- the Ministry of Agriculture and Rural Development (SADER);
Objectives - Increase productivity in the agricultural sector in a sustainable fashion through innovation, technological development and/or technology transfer in order to contribute to food self sufficiency and food security;
Type of aid - There are various components and subcomponents providing different incentives; e.g. direct support and repayable support;
Beneficiaries - Small and medium sized crop farmers who own up to 5 ha (individual incentives); organized crop farmers with up to 50 ha (incentives for collective projects); livestock farmers, including small farmers, with up to 35 head of cattle; investors in agri parks and agri business

Table ‎4.4 Agricultural support programmes
Social and Sustainable Agricultural Markets Programme (AMSYS)
Body- the Ministry of Agriculture and Rural Development (SADER);
Objectives -Promote appropriate marketing of surplus crops;
Type of aid - Direct payment as an incentive to achieve a minimum price or an "additional income" in order to achieve a "target income";
Beneficiaries - Small and medium sized producers of eligible crops by area (e.g. raw cotton, Arabica coffee, safflower, sunflower, maize, sorghum, soya, bread wheat)

4.42. Petróleos Mexicanos (PEMEX) also participates in farm-out agreements with private entities for the exploration and exploitation of oil and gas fields. These farm out agreements are not awarded through tenders but are the result of a conversion ("migration") process for allocations. PEMEX uses this type of contract for projects in which it is necessary to diversify investments, share risks and have access to new technologies and best practices for sustainability. (...)

4.54. In 2021, the Law on the Electricity Industry was amended to change the order in which generating companies can dispatch their production on the grid. However, the reform was suspended, as the private sector filed an appeal on grounds of unconstitutionality with the Supreme Court of Justice of the Nation (SCJN). The authorities indicated that, in April 2022, the SCJN had dismissed the appeal. The reform was therefore approved but has yet to be implemented. The reform seeks to adopt a model that ensures the security of the electricity dispatch, as power plants use mainly renewable sources, which may create problems of intermittency in production and, therefore, compromise the dispatch. As a result, priority is given to the dispatch of electricity produced by the CFE's plants, whether they are hydroelectric plants or plants using conventional sources of energy. Although this change seeks to guarantee supply, and strengthen the CFE, it could discourage private investment in renewable energy, by creating greater uncertainty for private operators.