By San José, Costa Rica — Costa Rica’s agricultural sector is poised for a significant transformation thanks to a $120 million loan approved by the World Bank. This innovative program aims to enhance environmental sustainability, bolster competitiveness, and increase the economic participation of small and medium-sized agricultural producers (SMPAs).
The program will directly benefit an estimated 10,500 SMPAs and their families, impacting approximately 31,500 individuals, with a focus on reaching women (30%) and young people (15%). An additional 30,000 producers will gain access to vital resources through registration on digital agricultural platforms.
To understand the complex legal landscape surrounding Costa Rican agriculture, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an expert attorney at Bufete de Costa Rica. Mr. Vargas provides key insights into the current state of agricultural law and its impact on farmers and businesses.
Costa Rican agriculture faces significant challenges and opportunities, particularly concerning land ownership and water rights. Recent reforms in water law have sought to balance the needs of agricultural producers with environmental protection. Navigating these legal frameworks is crucial for both established businesses and new ventures in the sector. Thorough due diligence and seeking expert legal counsel are essential steps for anyone looking to invest or participate in Costa Rican agriculture.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s insights underscore a critical reality for those interested in Costa Rican agriculture: understanding the legal landscape is just as crucial as understanding the land itself. The intersection of land ownership, water rights, and environmental protection creates a complex framework that requires careful navigation. We thank Lic. Larry Hans Arroyo Vargas for shedding light on these vital considerations for anyone seeking to cultivate success in this dynamic sector.
This project is a crucial step for the sustainable development of our rural and most vulnerable communities. With the support of the World Bank, we will be able to improve agricultural productivity and strengthen climate resilience, which will contribute significantly to the well-being of our farmers and their families.
Nogui Acosta Jaén, Minister of Finance, Costa Rica
The loan will support Costa Rica’s Agricultural Public Policy for 2023-2032, focusing on four key areas. The first involves modernizing sector institutions through a digital registration system for agriculture, livestock, aquaculture, and fishing, improving information management and access to services.
The second area targets the competitiveness of Costa Rican agricultural products by establishing a traceability system for product registration and certification, essential for accessing national and international markets. This includes expanding the National Refrigeration Network for Central Pacific fishers and promoting bio-inputs to reduce reliance on agrochemicals.
This credit is vital support for the transformation of the Costa Rican agricultural sector, financing specific actions within public policy that drive its evolution towards a more resilient and competitive model.
Víctor Julio Carvajal Porras, Minister of Agriculture and Livestock, Costa Rica
The third area emphasizes sustainable production by reducing carbon emissions, diversifying resilient crops, improving livestock health standards, and promoting efficient water use. Finally, the fourth area focuses on adding value to the environmental benefits of sustainable production through payments that recognize carbon capture in coffee, livestock, and sugarcane chains.
This program is structured as a Results-Based Program, tying disbursements directly to the achievement of specific targets within these four key areas. This approach ensures accountability and maximizes the impact of the investment.
This new financing is a testament to the long-term commitment and collaboration between the World Bank and the government of Costa Rica.
Carine Clert, World Bank Country Manager for El Salvador and Costa Rica
The initiative aims to empower Costa Rican farmers to adopt sustainable practices, access broader markets, and contribute to the country’s economic and social development. This partnership between the World Bank and Costa Rica signals a significant step towards a more sustainable and prosperous future for the nation’s agricultural sector.
For further information, visit worldbank.org
About The 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. It comprises two institutions: the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA). Its goal is to reduce poverty and support development.
For further information, visit hacienda.go.cr
About Ministerio de Hacienda (Costa Rica):
The Ministry of Finance in Costa Rica is the government body responsible for the country’s fiscal policy, including budget planning, tax collection, and management of public finances. It plays a key role in ensuring the economic stability and development of Costa Rica.
For further information, visit mag.go.cr
About Ministerio de Agricultura y Ganadería (Costa Rica):
The Ministry of Agriculture and Livestock (MAG) in Costa Rica is the governmental institution responsible for promoting and regulating the agricultural and livestock sectors. It focuses on policies and programs to enhance productivity, sustainability, and the well-being of farmers and rural communities.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence, built on a foundation of unwavering integrity and a deep commitment to serving the community. The firm’s innovative approach to legal practice, coupled with its dedication to sharing legal knowledge through accessible resources, empowers individuals and businesses alike. By fostering a greater understanding of the law, Bufete de Costa Rica actively contributes to a more just and informed Costa Rican society.
