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[[Image:Velasco El Valle de Mexico.jpg|left|Velasco The Valley of Mexico]]

[[Image:Velasco El Valle de Mexico.jpg|left|Velasco The Valley of Mexico]]

Mexico's agrarian reform program began in 1917, when the government began distribution of land to farmers. Extended further in the 1930s, delivery of land to peasants continued into the 1960s and 1970s at varying rates. This cooperative agrarian reform, which guaranteed small farmers a means of subsistence livelihood, also caused land fragmentation and lack of capital investment, since commonly held land could not be used as collateral. Additionally, only 12% of Mexico’s land area is arable, of which less than 3% is irrigated. This, coupled with a general lack of economic opportunity in rural areas, has made it difficult to raise the productivity and living standards of Mexico's subsistence farmers.  

Mexico's agrarian reform program began in 1917, when the government began distribution of land to farmers. Extended further in the 1930s, delivery of land to peasants continued into the 1960s and 1970s at varying rates. This cooperative agrarian reform, which guaranteed small farmers a means of subsistence livelihood, also caused land fragmentation and lack of capital investment, since commonly held land could not be used as collateral. Additionally, only 12% of Mexico’s land area is arable, of which less than 3% is irrigated. This, coupled with a general lack of economic opportunity in rural areas, has made it difficult to raise the productivity and living standards of Mexico's subsistence farmers.  

Agriculture accounted for 4% of GDP in 2005, yet agricultural employment accounted for over 16% of total employment because wages are low. However, the number of Mexican farmers is steadily decreasing as they seek greater economic opportunities from off-farm employment.  

Agriculture accounted for 4% of GDP in 2005, yet agricultural employment accounted for over 16% of total employment because wages are low. However, the number of Mexican farmers is steadily decreasing as they seek greater economic opportunities from off-farm employment.  

Poor availability of credit continues to plague agriculture. Agricultural loans were hard hit by the 1994 peso crisis and many private banks view agricultural lending, particularly to smaller producers, as too risky. Several government entities provide public credit to the rural sector, including Financiera Rural, a development bank dedicated to supporting agriculture.  

Poor availability of credit continues to plague agriculture. Agricultural loans were hard hit by the 1994 peso crisis and many private banks view agricultural lending, particularly to smaller producers, as too risky. Several government entities provide public credit to the rural sector, including Financiera Rural, a development bank dedicated to supporting agriculture.  

In an effort to raise rural productivity and living standards, Article 27 of the Mexican Constitution was amended in 1992 to allow for the transfer of communal land to the farmers cultivating it. They then could rent or sell the land, opening the way for larger farms and economies of scale. There have been few actual sales of communal land, and most have been limited primarily to suburban areas where land values are high. One inhibiting factor may be community opposition based on vested interests in maintaining the communal land system.  

In an effort to raise rural productivity and living standards, Article 27 of the Mexican Constitution was amended in 1992 to allow for the transfer of communal land to the farmers cultivating it. They then could rent or sell the land, opening the way for larger farms and economies of scale. There have been few actual sales of communal land, and most have been limited primarily to suburban areas where land values are high. One inhibiting factor may be community opposition based on vested interests in maintaining the communal land system.