Central America

Agricultural price and quantity changes in Central America have been significantly influenced by a combination of climate extremes, economic inflation, and market inefficiencies. The region has faced sharp rises in food prices due to both international and domestic factors. While global price increases, such as those for fertilizers and basic foods, have had some impact, domestic issues—like concentrated agribusiness markets and inefficient public policies—have been more central in driving food price inflationMIGRATION POLICY INSTITUTEWORLD BANK BLOGS. Furthermore, climate change has deeply affected agricultural production, especially in regions like the “Dry Corridor” in countries such as Guatemala and Honduras, where droughts, floods, and extreme weather patterns have disrupted the growing seasons for key crops like maize and beansMIGRATION POLICY INSTITUTE.In response, many countries have introduced temporary measures such as food assistance and trade barriers to provide relief. However, these actions have not addressed underlying inefficiencies or the resilience of agricultural systems in the long term. Experts suggest the need for a strategic shift, focusing on improving agricultural infrastructure, strengthening support for farmers, and reducing distortions in food pricing through better market integrationWORLD BANK BLOGS.