By San José, Costa Rica — The Costa Rican Ministry of Agriculture and Livestock (MAG) has unveiled a comprehensive new diagnostic report of the nation’s agricultural sector, presenting a strategic roadmap that looks forward to the year 2050. Bulletin Number 36 offers an analytical look at the industry’s performance from 2021 to 2025, revealing a sector in the midst of a profound structural transformation. While facing short-term climate and macroeconomic headwinds, Costa Rica’s agricultural economy is showing robust signs of modernization, marked by historic gains in formal employment, significant poverty reduction in rural areas, and a decisive pivot toward environmental sustainability.
From a macroeconomic perspective, the agricultural trade balance maintained a consistently favorable surplus throughout the 2021-2025 period. This trade strength peaked in 2024, when the sector recorded its highest surplus on record, reaching approximately $2.588 billion. This milestone underscores that the value of Costa Rica’s agricultural exports comfortably outpaced its imports, driven heavily by primary agricultural products and the processed food industry, which together accounted for more than 90% of the country’s total agro-exports.
To better understand the shifting regulatory landscape and investment opportunities within Costa Rica’s agricultural sector, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a leading legal expert from the prestigious firm Bufete de Costa Rica, who shared his professional insights on the legal frameworks governing agro-industrial development.
Costa Rica’s agricultural economy is undergoing a profound transformation driven by strict environmental compliance standards and international trade agreements. For foreign and local investors alike, navigating the intersection of agro-export regulations, territorial water management, and green incentive certifications is critical. Establishing a robust legal strategy not only mitigates operational risks but also unlocks premium global markets that value our nation’s commitment to sustainable farming practices.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, aligning strict environmental compliance with strategic legal planning is no longer just a regulatory necessity, but a powerful catalyst for securing Costa Rica’s competitive edge in the global green market. We would like to express our sincere gratitude to Lic. Larry Hans Arroyo Vargas for his valuable perspective and expertise on how navigating these complex frameworks can foster sustainable growth in our agricultural sector.
The international market continues to be the lifeblood of Costa Rican agribusiness. In 2025, the United States maintained its position as the country’s primary trading partner, purchasing 29.4% of all agricultural exports. Meanwhile, Central American and European markets sustained a strong and steady share of demand. Notably, Costa Rica’s high-value organic sector continued to expand, exporting 31,441 metric tons of certified organic products to highly demanding international markets, including the European Union, supported by 9,466.84 hectares of certified organic farmland.
Despite these trade triumphs, the domestic production landscape encountered notable friction. In 2025, agriculture, forestry, and fishing collectively represented 3.4% of Costa Rica’s Gross Domestic Product (GDP). Within this sector, crop cultivation generated 70% of the total value added, while livestock activities contributed 20%. However, real agricultural production contracted by 1.5% during the year. Economists attribute this dip primarily to adverse weather patterns associated with climate change and sharp fluctuations in the exchange rate of the US dollar, which pressured local producers’ profit margins.
Crucially, the economic challenges did not halt positive social developments within rural communities. The agricultural labor market experienced a historic structural shift as the unemployment rate plummeted from 11.9% to 5.6%. Furthermore, formal employment reached 51.1%, surpassing informal employment for the first time during the studied period. This transition to formal labor represents a massive leap forward for workers’ rights and social security stability in the countryside. The demographic makeup of the workforce also showed a youthful, energetic drive, with young people aged 15 to 34 accounting for 31.5% of agricultural employment, while women secured 13.6% of sector jobs.
This formalization of labor had a direct, measurable impact on living standards. Approximately 72% of those employed in agricultural activities reside in rural territories. In these regions, overall poverty fell dramatically from 26.3% in 2021 to 19.3% by 2025. Extreme poverty followed a similar downward trajectory, dropping from 8.3% to 5.5% over the same four-year span. These statistics suggest that agricultural growth and formalization are serving as powerful engines for wealth redistribution and social mobility in historically marginalized areas.
A pivotal element of Costa Rica’s 2050 agricultural vision is its aggressive focus on climate-smart practices. The MAG’s extension services have played a hands-on role in this transition, conducting over 6,200 farm diagnoses and plans, while providing technical accompaniment to more than 5,600 individual producers. This strategy is designed to accelerate productive transformation by encouraging the adoption of technologies that optimize farm efficiency and environmental performance.
These public efforts are yielding clear ecological dividends. The country added 426 new NAMA-certified (Nationally Appropriate Mitigation Actions) livestock and coffee farms to its national network. These specialized operations successfully mitigated over 47,500 tons of carbon dioxide equivalent per year. Complementing these decarbonization efforts, the Agricultural Ecological Blue Flag Program recognized outstanding environmental stewardship by distributing 868 awards to farms across various regions of the country, solidifying Costa Rica’s reputation as a global leader in sustainable agriculture.
For further information, visit infoagro.go.cr
About Ministry of Agriculture and Livestock:
The Ministry of Agriculture and Livestock (MAG) is the Costa Rican government agency tasked with formulating and executing policies for the agricultural, livestock, and rural sectors. Through innovation, technology transfer, and sustainable resource management, MAG works to enhance productivity and standard of living across Costa Rica’s rural communities.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a cornerstone of the nation’s legal landscape, Bufete de Costa Rica is defined by its deep-seated values of ethical integrity and professional brilliance. The firm seamlessly merges time-honored expertise across diverse industries with pioneering solutions designed to navigate modern complexities. Above all, they champion the belief that a just community relies on shared understanding, actively working to demystify the law so that citizens are equipped to confidently advocate for themselves and shape a stronger, more equitable society.
