HomeArchiveFarm Bill moves forward after arduous debate

Farm Bill moves forward after arduous debate

From the print edition

Heriberto Víquez has been a farmer for more than 40 years, growing coffee and cocoa, raising cattle, and recently venturing into organic farming with his son Carlos.

Carlos and his brother Joaquín represent the fourth generation in their family to work the land in Costa Rica.

“We love agriculture, we live agriculture and we are not going to leave this way of life,” said Heriberto Víquez, who owns a 321-acre plot of land near San Carlos in north-central Costa Rica. “We hope that our grandchildren continue our legacy.”

Some 1.9 million hectares of land in Costa Rica are utilized for agricultural purposes. Seventy percent of that territory is used for cattle farming and 30 percent for growing crops.

Bill 18,070, which could assist many small and medium-sized agricultural producers like the Víquez family is currently in the Legislative Assembly. After three weeks of discussion by farming representatives, municipal officials and lawmakers, the bill passed a first round of debate Monday night.

“We achieved a great deal. We are satisfied with the [bill’s] first approval, and we await its passage next month,” said Álvaro Sáenz, president of the National Agroindustry Chamber. 

Sáenz said the sector wanted legislators to approve at least one of their two demands. First, that an 80 percent tax decrease on land used for agricultural purposes be granted to producers regardless of their size, which was ultimately cut out of the final version of the bill.

Second, producers were requesting that land used for agricultural purposes be completely eliminated from the current standard that measures property value under the same classification as urban and tourist development. 

“We are happy because the current standard will not be used any longer to rate land used for agricultural and cattle farming,” Sáenz said, after the second measure was approved. 

If the bill passes a second debate, owners of farmland valued under the older system could ask municipal officials to re-evaluate properties with the goal of lowering land value to a “historical” value, plus an additional 20 percent.

On July 31, about 15,000 agricultural producers from all regions of the country traveled to the nation’s capital to protest a 2007 property tax law that farmers said was drowning them in debt. Since then, lawmakers opposed reforming the law because they said it also would unfairly benefit big companies. 

“The main disagreement [was] that a majority of lawmakers wanted to grant a tax benefit to all producers in the agricultural sector,” legislator José María Villalta, from the Broad Front Party, said last week. “There are other lawmakers, like myself, who think there only should be a tax [reduction] for small and medium-sized producers.”

However, lawmakers could not agree on how to define a small, medium or big agricultural producer, complicating the process.

“That standard does not exist today,” Sáenz said. “We have been waiting for one for 30 years.”

The final version of the bill moving forward proposes the establishment of such a standard, where land use and production, among others parameters, will be considered in determining a producer’s size. 

The responsibility of creating this standard will fall on the Agriculture and Livestock Ministry, which will carry out a census for up to four years.

The current version of the bill also drew support from the National Union of Local Governments (UNGL), which heavily opposed the 80 percent tax decrease originally included in the bill.

“We feel satisfied that we were able to reach an agreement that benefits all sides,” said UNGL Director Karen Porras, who represents some 71 municipalities. “We feel that the producers will feel more at ease with the proposal to create a standard.” 

Last week, agricultural-sector leaders announced additional major rallies across the country if lawmakers failed to vote on the bill. This week’s vote seems to have suspended those actions. 

In coming weeks, the Constitutional Chamber of the Supreme Court will review the version of the bill passed by lawmakers, and a second round of congressional debate could take place in September.

Trending Now

Used-Car Importers Take Costa Rica’s New Vehicle Tax Formula to Court

Costa Rica's used-car importers will challenge in court a Hacienda decree they say doubles or triples import taxes. The ministry cites evasion.

Who Is Costa Rica Really Competing With for Tourists?

Costa Rica's tourism board says its rivals are Thailand, Indonesia and New Zealand, not its neighbors. Business chambers see a wider field and warn the country is getting too expensive.

Costa Rica El Niño Plan Warns of Major Water Supply Risks

Costa Rica is preparing for possible water shortages affecting hundreds of thousands of people as the strong El Niño weather pattern continues to reduce...

Panama Rescues Three Costa Rican Fishermen After Six Days Adrift in the Caribbean

Three Limón fishermen missing since Sept. 21 were found alive off Panama's Caribbean coast after their boat's engine failed and a cellphone call to 911 led rescuers to them.

Tropical Wave 47 Brings Afternoon Storms to Costa Rica This Weekend

Tropical Wave 47 brings afternoon storms across Costa Rica today, with heaviest rain in the north and central mountains. Plan outdoor time early.

Bryan Ruiz Debuts as Costa Rica Coach With Nations League Survival at Stake

Bryan Ruiz coaches Costa Rica for the first time tonight against Nicaragua, with Keylor Navas back and Nations League relegation at stake.

Costa Rica Takes Two Top Honors in National Geographic UK Travel Awards

British travelers have placed Costa Rica at the top of two major travel categories, naming it their favorite destination for both adventure and responsible...

Costa Rica’s San Jose Airport to Add Eight-Level Parking Garage and New Investments

Juan Santamaría International Airport is moving ahead with a major expansion of its parking facilities, including a new eight-level structure that will add 600...

Costa Rica Opens Modern Pier at Historic San Lucas Island

Visitors to San Lucas Island National Park now have an easier way to get ashore after Costa Rica opened a new tourist pier at...
Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel