No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

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

Ring of Fire Earthquakes Put Costa Rica’s Seismic Risk in Focus

A series of powerful earthquakes around the Pacific Ring of Fire has renewed attention on Costa Rica’s seismic risk and the tectonic forces constantly moving beneath.

Argentine Thiago Tirante Extends Dream Cincinnati Run Into Quarterfinals

Thiago Agustín Tirante’s breakthrough week at the Cincinnati Open continued Wednesday as the Argentine rallied past Jakub Mensik to reach the first ATP Masters...

Costa Rica’s Maleku Chocolate Wins International Bronze Medal

A 70% dark chocolate grown, fermented and finished entirely in Costa Rica has earned international recognition for its Guanacaste-based producer.

Costa Rica Court Questions Tourism Projects on Public Forest Land

Costa Rica’s Constitutional Chamber will examine whether some tourism projects allowed on state-owned forest land should continue to be classified as low-impact activities. The...

Costa Rica flood emergency keeps 473 schools closed and 1,300 people in shelters

The rain has eased but saturated ground keeps the risk high across the Caribbean and Northern Zone. Here is what is closed, what is reachable and what to check before you drive.

Costa Rica Documentary Reveals Why Whales From Two Hemispheres Choose Golfo Dulce

Golfo Dulce is the only place on Earth where humpback whales from both hemispheres give birth. A new Costa Rican documentary spent three years filming it.

Man Allegedly Collected North American Woman’s Pension for 20 Years

Costa Rican prosecutors are investigating a man suspected of collecting about $800,000 from the pension of a North American woman who died more than...

Costa Rica Weekend Forecast Calls for Rain and Thunderstorms

Unfortunately, the break in the rain won't last. Costa Rica's National Meteorological Institute expects instability to build over the weekend, and Saturday is shaping...

Costa Rica Under Orange Alert as Caribbean Ground Reaches Saturation

Updated Monday at 11:40 a.m. Route 32 has reopened. The Río Chirripó bridge on Route 4 is closed. The ground across the Caribbean can no...
Avatar
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

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