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“The Yaqui Valley in 2020: An Uncertain Outlook” Walter P. Falcon. Past as Prologue. “The problem with history is that it is just one damned thing after another.” George Bernard Shaw. A Decade of Shocks. Economic Peso Crisis 1994
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“The Yaqui Valley in 2020: An Uncertain Outlook” Walter P. Falcon
Past as Prologue “The problem with history is that it is just one damned thing after another.” George Bernard Shaw
A Decade of Shocks Economic • Peso Crisis 1994 • Removal of many subsidies and tariffs in conjuction with NAFTA • Depressed world commodity prices, 1996-2001
Shocks Biological • White Flies----->Soybeans • Karnal Bunt----->Wheat • Rusts----->Wheat
Shocks Climate • Drought--a severely negative factor for all of Valley agriculture • Cooler temperatures--a positive factor, at least with respect to wheat yields
Irrigation--The Central Question How does the Valley get started again with an empty reservoir? Will new water conservation techniques and types of investments (such as pivot and drip) be needed? Will higher valued crops then be necessary to pay for the new irrigation investments? Will new forms of irrigation substantially reduce non point source nitrogen runoff/pollution?
One Vision--Opportunities and Problems More use of Groundwater; More higher valued crops, which means moving to demand-driven, forward contract systems; More livestock and aquaculture production; More point source pollution, more pesticide residues, less nitrogen non-point source runoff.
Whither Cereals in the Valley? Can Mexican wheat be competitive internationally? Are new high-yielding wheat cultivars possible which use much less irrigation water? Is higher-yielding maize a near-term prospect? Is replacement of wheat with triticale a logical move to avoid wheat pricing problems and to feed the livestock industry?
Mexico (Total Agriculture) Producer Support (2002) $8,080 mil. PSE--22% General Services Support $0.710 mil. United States (Total Agriculture) Producer Support (2002) $39,559 mil. PSE--18% General Services Support $26,594 mil. Government Support
Types of Support in Mexico Producer Support Payments Market price support--66% Acreage payments--21% Income support--2% Input subsidies--8% Other--3%
Mexico (2002): Wheat Prod.--3.2 mmt Government Support $0.202 mil. Wheat PSE--34% Maize Prod.--19.3 mmt Government Support $1,081 mil. Maize PSE--31% United States (2002): Wheat Prod.--44.1 mmt Government Support $2,611 mil. Wheat PSE--30% Maize Prod.--228.8 mmt Government Support $4,578 mil. Maize PSE--17% Government Support
Major Uncertainties Lie Ahead • What does the future hold with respect to: • Water availability and irrigation design? • Bulk versus high valued commodities? • Crop versus livestock/aquaculture as the dominant systems? • Extent and types of Government support; • Political/economic concern for the ejiditarios?