Rural Economy

Farmers and livestock producers in Yoro have lost an estimated 150 million lempiras (about $6 million) to drought, with corn crops failing, milk production down 40%, and cattle herds shrinking as pasture vanishes and rural employment collapses.

Adverse weather and crop failures in Piraera, Lempira are forcing agricultural families to sell livestock to cover basic needs, prompting the mayor to call on the government for rural support.

Lawmakers are proposing to reduce rental rates on idle state-seized agricultural land from 500 lempiras (about $20) per manzana to 200 lempiras (about $8) per manzana, aiming to ease costs for farming cooperatives and discourage illegal land occupations in rural areas.

The government unveiled a 1.5-billion-lempira (roughly $60 million) incentive program targeting more than 300,000 corn, bean, coffee, and cattle farmers nationwide, with a drought-contingency plan and increased municipal transfers to help communities hardest hit by dry conditions.