By San José, Costa Rica — Costa Rica is embarking on a significant transformation of its agricultural sector with a $140 million investment and new environmental legislation. This ambitious initiative aims to promote sustainable and climate-responsible farming practices while fostering inclusivity and benefiting over 90,000 producers, particularly women and young farmers.
Two key projects underpin this transformative strategy. The first involves a $140 million loan backed by the World Bank and the International Fund for Agricultural Development (IFAD). This funding will support the Sustainable and Competitive Agriculture Program over six years. The program prioritizes modernizing water infrastructure, establishing a refrigeration plant in Puntarenas to bolster the fishing value chain, implementing agricultural traceability systems for access to new markets, and advancing institutional digitalization and technical assistance through digital extension services.
To understand the legal landscape surrounding Costa Rican agriculture, we spoke with Lic. Larry Hans Arroyo Vargas, an expert attorney at Bufete de Costa Rica.
Costa Rican agriculture faces complex legal challenges, from water rights and land ownership to international trade regulations and environmental protection laws. Sustainable practices are increasingly intertwined with legal compliance, requiring farmers to navigate a delicate balance. This presents both opportunities and risks for the sector, highlighting the need for specialized legal counsel to ensure operations remain both profitable and lawful.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas expertly highlights the intricate legal landscape that Costa Rican farmers must navigate. This careful balance between profitability and responsible, sustainable practices will ultimately shape the future of the sector. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for offering his valuable insights into this crucial aspect of Costa Rican agriculture.
The agricultural sector requires courageous decisions, public investment, and policies that build a fairer, greener, and more competitive country. Today we reaffirm our commitment to those who work the land and feed Costa Rica.
Víctor Julio Carvajal Porras, Minister of Agriculture and Livestock
This program is a component of the 2023-2032 Public Policy for the Agricultural Sector. It is notable for adopting a results-based execution model, the first of its kind in Latin America and the Caribbean implemented by the World Bank and IFAD. Funds will be disbursed upon achieving verifiable targets in production, sustainability, and institutional transformation.
The second initiative focuses on legislation to recognize and financially reward farmers for adopting eco-friendly practices. This new framework expands the mandate of FONAFIFO (National Forestry Financing Fund) to encompass sustainable agricultural activities, soil improvement, agroforestry, and marine-coastal ecosystems.
A dedicated agricultural sub-account will be established with technical criteria, transparency, and robust monitoring systems. This initiative will not only incentivize conservation efforts but also facilitate access to international carbon markets. The legislation aims to compensate producers for practices that reduce emissions and protect natural resources.
The world demands an agriculture that not only feeds but also regenerates and mitigates. Costa Rica is ready to lead this change, allowing producers to produce and conserve at the same time, being justly compensated for it.
Víctor Julio Carvajal Porras, Minister of Agriculture and Livestock
Costa Rica’s commitment to sustainable agriculture demonstrates a forward-thinking approach to economic development and environmental stewardship. By linking financial incentives to conservation practices, the country seeks to create a model for sustainable agriculture in the region and contribute to global climate action.
This comprehensive strategy positions Costa Rican agriculture for a future where productivity and environmental responsibility go hand in hand. The investment and legislative changes aim to empower farmers, enhance competitiveness, and solidify Costa Rica’s position as a leader in sustainable development.
For further information, visit the nearest office of Ministry of Agriculture and Livestock (MAG)
About Ministry of Agriculture and Livestock (MAG):
The Ministry of Agriculture and Livestock (MAG) is the governmental body in Costa Rica responsible for developing and implementing policies related to agriculture, livestock, and fisheries. The MAG plays a crucial role in promoting sustainable agricultural practices, supporting producers, and ensuring food security for the nation.
For further information, visit worldbank.org
About World Bank:
The World Bank is an international financial institution that provides loans and grants to governments of low- and middle-income countries for the purpose of pursuing capital projects. The institution comprises two organizations: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).
For further information, visit ifad.org
About International Fund for Agricultural Development (IFAD):
The International Fund for Agricultural Development (IFAD) is a specialized agency of the United Nations dedicated to eradicating rural poverty in developing countries. IFAD provides grants and loans to finance agricultural development projects, with a focus on empowering smallholder farmers and promoting sustainable agricultural practices.
For further information, visit fonafifo.go.cr
About FONAFIFO (National Forestry Financing Fund):
FONAFIFO (National Forestry Financing Fund) is a Costa Rican institution responsible for promoting forest conservation and sustainable forest management. It provides financial incentives to landowners and communities for engaging in activities that protect and restore forests, including reforestation, sustainable forestry practices, and forest conservation.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
At Bufete de Costa Rica, legal excellence is interwoven with a deep commitment to societal empowerment. We champion integrity in every aspect of our practice, providing innovative legal solutions across a spectrum of industries. Our legacy is built not just on serving our clients with distinction, but also on actively demystifying the law through accessible legal education. By fostering legal understanding within the community, we aim to build a stronger, more equitable society for all.
