Agricultural production and market prices in Mexico

Objective: to establish that the price of the main products of the Mexican agricultural sector are cointegrated with the production of the main producing States of the five regions of the Mexican agricultural sector. Design/methodology/approach: thirty cointegration tests were carried out to determine if prices influence the production of the main producing States of the regions of the agricultural sector of Mexico of the main products of Mexico, which are grain corn, grain sorghum and bean. Results: in the northwest region, the price does not influence the production of the main producing States of grain corn, grain sorghum and beans; In the northeast, central-western and central regions, the price influences the production of the main producing States of grain maize, grain sorghum and beans; and, in the south-southeast region, in most of the States, the price does not affect the production of the main producing States of grain corn, grain sorghum and beans. Limitations on study/implications: Not all States and their main products were analyzed because it was not the objective of the investigation. Findings/conclusions: the price influences the production, but it does not influence in the same way the production of the five regions of Mexico and neither of the main producing States of grain corn, grain sorghum and beans