Rice Production Conflicts in the
Tempisque-Bebedero Watershed
E. Karpinski
N. Malafa
G. Mander
C. Nealis
July 6, 2012
Abstract
1
In the wake of their controversial consent to the Central American Free Trade Agreement, Costa Rica
has failed to liberalize rice production. CONARROZ, the nation’s rice regulating organization, currently
places tariffs on imported rice while fixing the domestic price of rice in order to support domestic production.
It is clear that a strong cultural identity exists with rice in Costa Rica, and that, as a staple of the Costa Rican
diet, rice is a strong candidate for food sovereignty in Costa Rica. The Tempisque Basin plays an important
role in domestic rice production, producing 45% of total domestic rice, and employing many small and large
farmers in the Guanacaste area. While the Tempisque basin is the most productive area for rice, a closer look
at local agricultural practices suggests that more efficient methods are available. It is recommended that rice
be used to mitigate nutrients from agricultural practices in the basin by following suggested management
practices and by utilizing irrigation from the drainage canals. Rice production will continue for domestic
consumption while providing a valuable ecosystem service. This practice can be integrated into a Payment for
Ecological Services system, offering many benefits to the watershed, including reducing nutrient pollution,
increasing biodiversity, and providing alternative habitats to migrating waterfowl and other native fauna.
Introduction
Key Terms and Definitions:
Term
Translation
AoA
Agreement on Agriculture
Tillering
Tillers are stems that grow from
grass plants after the initial shoot
grows from seed.
Importance
Divides domestic support for agriculture into
categories of what is and is not allowable.
Tillering is the process of growing more of these
stems and ensures the production of more seed
heads than just those produced on the parent stem.
AMS
Aggregate Measure of Support
Measures the value of trade-distorting subsidies.
BMPs
Best Management Practices
practical and cost-effective actions that can be
taken to reduce agricultural impacts on natural
resources
Central American Free Trade
Agreement
By ratifying CAFTA, Costa Rica agreed to
eliminate tariffs to facilitate international trade.
CAFTA
CESCR
Committee on Economic, Social,
and Cultural Rights
Suggested the importance of considering a
country’s food security when entering into free
trade agreements
COMEX
Ministerio de Comercio Exterior
(Ministry of Foreign Trade)
Involved in developing infrastructure and
adopting best practices to make Costa Rica more
competitive and increase the likelihood of success
in international trade
CONARROZ
Corporación Arrocera Nacional
(National Rice Corporation)
A public legal entity designated to protect and
promote national rice production
Food and Agriculture Organization
Noted problems with the AMS calculations and
developing countries.
FAO
2
food
sovereignty
FTA
ICESCR
The right of people to define their
own food and agriculture systems
in an ecologically sustainable way.
Such strategy centers access to food around
those who produce, distribute, and consume
food instead of around foreign markets. It
consequently ensures the right to use and manage
land to produce culturally and nutritionally
appropriate food.
Free Trade Agreements
General term describing agreements such as
NAFTA and CAFTA that seek to liberalize
international trade.
International Covenant on
Economic, Social, and Cultural
Rights
Promoted the fundamental human right to food
While considering problems with food importing
and exporting.
NAFTA
North American Free Trade
Agreement
Sometimes likened to CAFTA and serves as
a warning for the failures of FTA’s regarding
developing countries.
Panicle
a loose, open branching of flowers
and fruit or seed.
Part of the flowering stage of rice crop
development.
PES
Payments for Ecosystem Services
Focuses on maintaining the flow of a specified
ecosystem service in exchange for something of
economic value.
PRAT
Arenal-Tempisque River Irrigation
District
Provides irrigation services for the Tempisque
Basin.
SENARA
National Service for Irrigation and
Drainage
Manages PRAT and sets tariffs and irrigation
allotments for farmers in the basin
the flower cluster on a rice plant
Rice flowers are necessary for the fertilization
and production of rice.
Sustainable
The ability to endure over long
periods of time while maintaining
ecological, social, and economic
stability.
Sustainability is or should be the ultimate goal of
governance.
TempisqueBebedero
Watershed
geographic location where the rice
farms are located
Referred to as the Tempisque Basin throughout
the paper.
World Trade Organization
Costa Rica joined the WTO in 1995, promising to
eliminate trade-distorting subsidies.
Spikelet
WTO
Importance of Specific Topic
Rice is a major food staple in the Costa Rican diet, accounting for a significant portion of the national
3
food basket. Gallo pinto, a breakfast staple consisting primarily of rice and black beans, is the national dish,
and many Costa Ricans eat rice with every meal. Due to its prevalence in the Costa Rican diet, it is an
essential part of both the national economy and also the cultural identity of the nation. Therefore, domestic
rice production is important to many Costa Ricans.
Rice production in the Tempisque River Basin accounts for 45% of Costa Rica’s total rice production 1.
The area plays a major role in the national economy, and provides stability in national socio-economic
concerns such as food sovereignty and food security. It is an agricultural region of both social and economic
importance, and for these reasons, production of rice in this area is desirable and should not halt.
Unfortunately, high production in the region has not translated into high profits. Small farmers in the region
have higher production costs associated with their lack of access to the technological advances that benefit
large-scale producers. In order to protect and promote domestic rice production, Costa Rica created
CONARROZ. CONARROZ set up price fixing measures to ensure profitability for both large and smallscale farms.2 Additionally, they set high tariffs on imported rice in order to ensure a level playing field with
domestic producers.3 However, price fixing disproportionately affects poor consumers and benefits large
producers, making it a less-than-ideal solution for the problem of profitability in domestic rice production.
Price fixing is detrimental to the global economy and violates Costa Rica’s commitment to international free
trade.
When Costa Rica joined the World Trade Organization (WTO) in 1995, the Agreement on Agriculture
(AoA) came into effect, and Costa Rica effectively promised to reduce their level of trade-distorting subsidies
over a period of several years. In addition, Costa Rica ratified the Central American Free Trade Agreement
(CAFTA) in 2009, essentially agreeing to eliminate tariffs in order to liberalize international trade.
Opponents of CAFTA fear that Costa Rica will not be able to compete with larger economies, resulting in the
loss of its agricultural sector and its food security. It may be possible for Costa Rica to honor its commitment
to CAFTA and maintain food sovereignty, but some alternate measures are necessary to ensure the domestic
production of rice is profitable and feasible.
One method of supporting rice farmers is shifting the focus from price fixing and tariff measures to
payments for ecosystem services (PES). Costa Rica’s economy is heavily influenced by ecotourism, therefore
their economy is dependant upon a healthy ecosystem. Growing rice can provide several ecosystem services,
including nutrient reduction and increased biodiversity. In addition, it can improve groundwater recharge and
control flood and erosion. Payments for ecosystem services focus on maintaining the flow of a specific
ecosystem service, such as clean water and biodiversity protection, in exchange for something of economic
value. Rather than imposing price controls and tariffs that benefit large-scale producers of rice and
disproportionately affect poor consumers, CONARROZ could move towards paying farmers for the
ecosystem services they provide, namely, increased biodiversity, improved hydrologic flows, and advanced
nutrient reduction. Substituting PES for price controls could have the threefold benefit of ensuring
compliance with CAFTA and the WTO, thus benefitting global free trade, protecting small farmers and poor
consumers while ensuring food sovereignty, and improving the ecosystem thereby stimulating ecotourism and
benefitting the national economy.
Key Stakeholders: Basic Information
For the purposes of this document, the key stakeholders are:
Consumers: Costa Rican rice consumers have a major stake in whether or not domestic production
1
Loaiciga, H.A. & T.H. Robinson. “Sampling of agrochemicals for environmental assessment in rice paddies: Dry tropical
wetlands, Costa Rica.” Groundwater Monitoring and Remediation at 111.
2 "Misión, Visión, Valores." ConArroz. <http://www.conarroz.com/index.php?option=com_content>.
3 Alavi, S., & G. L. Cramer. Rice Fortification in Developing Countries: A Critical Review of the Technical and Economic
Feasibility Annex 4 Rice Fortification in Costa Rica. Rep. USAID, 2008. Print at 57.
4
continues in its current form. Price controls and import tariffs mean that consumers pay a higher price for
domestic rice than international rice, disproportionately affecting the poorest consumers. At the same time,
domestic rice production is a source of national pride and food sovereignty and security are desirable results
of continuing rice production in Costa Rica. Substituting PES for price controls will ensure that Costa Ricans
get the best price on their rice,without jeopardizing domestic production.
Producers: Rice producers, both large and small, will be significantly affected by the decision
of whether or not to comply with CAFTA. Large farms may be able to continue production without
CONARROZ’s protective measures, but they would certainly see a reduction in profits. Small-scale farmers
would be unable to cover their production costs with lower rice prices, and many would be forced to switch
crops or sell their land without the additional support. The addition of PES would ensure that these farmers
could continue to produce rice on their land for profit.
Government entities: CONARROZ is tasked with ensuring the profitability of domestic rice
production. The mission of the Ministry of Foreign Trade (COMEX) is to increase the likelihood of Costa
Rica’s success on the international market. Their successes and failures affect the lives of all Costa Ricans,
be they farmers or consumers of this staple grain. Implementing PES could allow CONARROZ and COMEX
to improve the economic prospects of producers and consumers of rice, both foreign and domestic, while also
contributing to a healthy and beautiful ecosystem in Costa Rica.
International economic community: Free trade agreements are designed to allow international
trading partners mutual gains from the trade of goods and services. Trade-distorting measures subvert the
effectiveness of free trade agreements. If Costa Rica implements PES practices, the international trade
community would benefit from being able to sell their rice to Costa Rica at competitive prices.
Incoherence with International Trade Policy
Despite being party to several trade agreements, Costa Rica is not entirely conforming with their
obligations. Costa Rica’s incoherence with international trade policies is due to a conflict of values among
stakeholders. At the forefront of the conflict is a worldwide goal of economic development and the neoliberal
method for achieving this goal, contrasted with domestic concerns that these international trade policies, while
beneficial for some countries, may be damaging to Costa Rica’s economic sectors, which in this case is rice.
CONARROZ and COMEX
The National Rice Corporation (Corporación Arrocera Nacional-CONARROZ), a public legal entity,
was created by Law 8285 in 2002. CONARROZ’s responsibility under Article 1 is to protect and promote
national rice production in a comprehensive manner. The mission of CONARROZ is “[o]rganización
rectora de la actividad arrocera que contribuye a ordenar y mejorar la producción, el abasto y la relación
entre productores, industriales y Gobierno, con el fin de garantizar el acceso, la disponibilidad del grano
con alta calidad, el compromiso con la responsabilidad ambiental, social y económica.” 4 The Costa Rican
rice industry currently supplies only 55% of the domestic demand. There is typically a 35% tariff to control
imports and maintain a stabilized industry. When there is a shortage of domestic rice, the government
issues “shortage decrees” and allows CONARROZ sole authority to import rice tariff free. 5 In 2009, 95%
of the imported rice came from the US.6 CONARROZ then distributes the imported rice proportionately
to the rice industrialist at the price set by the Ministry of Economy, Industry and Commerce (MEIC), as
4
"Misión, Visión, Valores." ConArroz.
Alavi, S., & G. L. Cramer at 57.
6 COMEX, MEIC, and MAG. Incidencia Del Mecanismo De Fijación De Precios Del Arroz Sobre El Productor, El Consumidor Y
Las Obligaciones Internacionales De Costa Rica. Rep. 2010. Print at 4.
5
5
recommended by CONARROZ.7
The Ministry of Foreign Trade (COMEX) was created in 1986 by Act No. 7040 Special Budget.
Its funding and responsibilities have been augmented through subsequent legislation. COMEX’s mission
is “to promote the involvement of Costa Rica in the global economy by opening up new opportunities in
international markets, support for the expansion, diversification and sophistication of the national exportable
supply and attracting foreign investment to the country.”8 In order to achieve this mission, COMEX is
involved in developing infrastructure and adopting best practices and new technological development in order
to make Costa Rica more competitive and increase the likelihood that Costa Rica is successful in international
trade realm. It is also the role of COMEX to ensure Costa Rica is complying with its trade obligations by
correcting any measures that hinder their implementation.9
World Trade Organization
In 1995, when Costa Rica joined the World Trade Organization, the Agreement on Agriculture (AoA),
which was negotiated at the Uruguay Round, also entered into force.10 As a part of the AoA, domestic support
for agriculture is divided into categories. The Green Box refers to subsidies that are considered not tradedistorting and include support that is provided through publicly funded government program and does not
involve transfers from consumers nor price support to producers. There is no limit on this type of subsidy.
Amber Box subsidies are trade-distorting, the value of which is measured by the Aggregate Measure of
Support (AMS) indicator. Developing countries committed to bind their AMS levels and to reduce the level
over a period of years. In a report from 2003, the Food and Agriculture Organization of the United Nations
(FAO) noted that Costa Rica was not breaching their AMS and was properly notifying the WTO of their
domestic support. The FAO also noted in their report that there were likely to be problems for developing
countries in the future as the calculations for the market price supports were based on the years 1986-1988
and expressed in domestic currencies, which were especially vulnerable to inflation changes. 11 This prediction
proved true for Costa Rica as shown in this graph12:
7
Id. at 5.
"Acerca De COMEX." COMEX. <http://www.comex.go.cr/acerca_comex/index.aspx>.
9 "Pilar II." COMEX. <http://www.comex.go.cr/politica_comercio/pilar2.aspx>.
10 "Agriculture." WTO. <http://www.wto.org/english/tratop_e/agric_e/agric_e.htm>.
11 WTO Agreement on Agriculture: The Implementation Experience - Developing Country Case Studies. Rep. Rome: 2003. <http://
www.fao.org/DOCREP/005/Y4632E/y4632e0a.htm#TopOfPage>.
12 COMEX, MEIC, and MAG at 10.
8
6
At the Agriculture Committee meeting in September of 2010, several delegations expressed
their concern that Costa Rica was breaching its AMS limit of $15.95 million by supporting its farmers with
price support up to six times the AMS limit at $109.7 million, a rate that had been steadily growing since
2008.13 Market price support is “annual monetary value of gross transfers from consumers and taxpayers to
agricultural producers arising from policy measures.” Costa Rica employs market price support through
importation tariffs of 35% and price floors and ceilings at each step of the production chain.14 In a
notification, Costa Rica laid out its reasons for exceeding the limits and said it had formed a commission to
look for reforms that could be made in the rice sector. The US was not satisfied with these steps. The rest of
the Cairns Group, a group of 19 agricultural exporting countries, were concerned that Costa Rica’s breaches
would hurt other countries and would have a negative effect on world markets as well as on the credibility of
the WTO’s trading system since all countries agreed to the Uruguay and Doha Rounds. In general, other
WTO countries were pleased that despite of the breaches, Costa Rica properly revealed their levels of support
in a spirit of transparency.15 But in March of 2012, the US, Pakistan, Australia and Japan were concerned that
Costa Rica was still continuing to breach their agreement and would not say when it would start complying
with its agreements nor elaborate on how inflation has affected the value of the support Costa Rica provides to
its rice producers.16 If Costa Rica continues failing to abide by its obligations, other members of the WTO can
ultimately request an arbitration panel to determine whether there has been a breach and the panel may decide
to impose sanctions in the form of tariffs.17
Dominican Republic - Central America - United States Free Trade Agreement
After contentious domestic debates and international pressure, Costa Rica was the last country to
ratify the CAFTA-DR (CAFTA) on January 1, 2009.18 According to the US, the free trade agreement (FTA)
levels the playing field and increases the two-way trade between the countries. 19 Proponents also expect that
CAFTA will reinforce regional stability.20 The key elements of CAFTA are that no products are excluded
from the agreement and that liberalization will take place through tariff reductions and tariff-rate quota
expansion. Eventually, tariffs will be phased out for all products with the exception of sugar to the US,
fresh potatoes and fresh onions to Costa Rica and white corn to the rest of Central America. 21 CAFTA also
allows for some safeguards, applies sanitary and phytosanitary measures, holds countries to their domestic
environmental regulations, and provides trade capacity building technical assistance from the US. 22
In ratifying CAFTA, one of Costa Rica’s greatest concerns was that it would result in a loss of
sovereignty. While there were multiple sectors in which Costa Rica felt its sovereignty might be threatened,
13
"Members Concerned about Costa Rica Exceeding Farm Support Commitments." WTO 2010 News Items. Agriculture, 23 Sept.
2010. <http://www.wto.org/english/news_e/news10_e/ag_com_23sep10_e.htm>.
14 Umaña, V. "Food Policy Coherence for Sustainable Development: The Case of the Rice Sector in Costa Rica" at 45.
15 "Members Alarmed by Farm Support Breaches and Export Curbs." WTO 2010 News Items. Agriculture, 18 Nov. 2010. <http://
www.wto.org/english/news_e/news10_e/ag_com_18nov10_e.htm>.
16 "Concerns about Costa Rica’s Subsidy Breach Continue in Agriculture Committee."WTO 2012 News Items. Agriculture: Regular
Committee, 21 Mar. 2012. <http://www.wto.org/english/news_e/news12_e/agcom_23mar12_e.htm>.
17 COMEX, MEIC, and MAG at 11.
18 United States. Trade Representative. Office of the President. Office of the United States Trade Representative. <http://
www.ustr.gov/trade-agreements/free-trade-agreements/cafta-dr-dominican-republic-central-america-fta/>.
19 United States. Department of Agriculture. Foreign Agricultural Services. FACT SHEET on Dominican Republic-Central
America-United States Free Trade Agreement. 2009. <http://www.fas.usda.gov/info/factsheets/CAFTA/CAFTA-DR0909.pdf> at 1.
20 Hornbeck, J. F. The Dominican Republic-Central America-United States Free Trade Agreement. Rep. Congressional Research
Center, 2008. Print at 6.
21 "Agriculture." WTO. <http://www.wto.org/english/tratop_e/agric_e/agric_e.htm>.
22 United States. Department of Agriculture. Foreign Agricultural Services. FACT SHEET <http://www.fas.usda.gov/info/
factsheets/CAFTA/CAFTA-DR0909.pdf> at 3.
7
one of the concerns was that Costa Rica would lose its agricultural sector and its food security by competing
with a giant economy like the US.23 Some opponents, such as the NGO, Global Exchange, liken CAFTA to
NAFTA and fear Costa Rica will suffer a similar fate to that of Mexico, such as eliminating small farmers
since the US subsidizes their farmers and Costa Rica will not be able to compete with the low prices. If small
farmers lose their livelihoods, they may abandon their farms and move to the cities, which would reverse the
land redistribution efforts and result in further concentration of rice production in the hands of large scale
producers.24 Already 80% of the rice production belongs to the 40% of the large, corporate rice producers.
Since large producers have, on average 18% lower production costs than small farmers, it is easier for large
producers to achieve economies of scale and be less vulnerable to international prices. 25 It has been argued by
some that large scale producers often use less sustainable practices that are more harmful on the environment
in their quest to achieve the greatest productivity, a price Costa Rica would ultimately pay, yet a price that is
not reflected in the price consumers pay.26
Those in favor of CAFTA point out that it has an innovative chapter on environment that could
help prevent practices that are detrimental to the environment.27 It is also considered by some that “trade
liberalization and deregulation of the rice sector will contribute to sustainable development” by decreasing the
amount poor households spend on rice and by protecting wetlands.28
Explanations for Incoherence
CONARROZ and COMEX represent the two conflicting ideological sides to the debate on neo-liberal
trade practices. COMEX encourages the expansion of free trade practices with the belief that by opening
Costa Rica to the international market, neoliberalism will result in greater economic growth by creating
jobs and providing goods and services at a lower price.29 As a vocal opponent to these neoliberal practices,
CONARROZ is concerned with protecting the domestic agricultural sector of rice. CONARROZ argues that
free trade in its current form will result in the demise of the Costa Rican agricultural sector, specifically of
rice production. CONARROZ believes that in a true free trade system, Costa Rica’s rice production could be
competitive in the international market. However, despite free trade regulations such as CAFTA, the US still
subsidizes their agricultural sector, making it impossible for Costa Rica to compete without providing price
support to their own farmers. Were the situation truly equitable, the rice sector would not need the protection
and lobbying actions of CONARROZ.30 In regard to the WTO Agreement on Agriculture, CONARROZ also
argues that Costa Rica is not in compliance because the AMS is outdated and was unreasonable even at the
time it was negotiated.31
Domestic Socioeconomic Effects of Rice Market Price Policies
23"A
Long Year With CAFTA." Tico Times. TMCNews, 15 Jan. 2010. <http://www.tmcnet.com/usubmit/2010/01/15/
4574384.htm>.
24 James, D. "Food Security, Farming, and the WTO and CAFTA."GlobalExchange.org. Global Exchange. <http://
www.globalexchange.org/resources/wto/agriculture>.
25 Umaña, V. at 44.
26 James, D.
27 Condo, Arturo, Forrest Colburn, and Luis Rivera. The United States Central America Free Trade Agreement (CAFTA):
Negotiations and Expected Outcomes. Rep. 2005. Print at 10.
28 Umaña, V. at 41.
29 "-Política De Comercio Exterior." COMEX. <http://www.comex.go.cr/politica_comercio/index.aspx>.
30 Cespedes, Renzo. Personal interview. 25 June 2012
31 Id.
8
Background
Rice plays a critical role in the Costa Rican diet, constituting a large portion of the total Costa Rican
food basket. As a result, Costa Rica's provisioning and micro-economic well being is highly dependent
upon the domestic price of rice. This dependency generally disfavors the poor. A negative correlation exists
between wealth of Costa Rican households and percentage of income expended on rice, indicating that poorer
families suffer most from increases in rice prices.32 As a traditionally important part of the Costa Rican
meal, rice has also become an integral part of domestic cultural identity. With large amounts of domestic
consumption, many Costa Ricans pride themselves in the country's domestic production.
As a result of the high dependency on rice, especially by the impoverished Costa Rican population, the
relatively high nutrient quality of domestic rice remains a benefit of Costa Rican production. Although there
has been recent enforcement of policies requiring imported rice to be fortified with nutrients in order to match
domestic quality, the natural high quality of rice, as a product of ideal growing conditions, are more cost
effective and more environmentally favorable than paying for more enhanced imported rice. 33
As an integral part of the Costa Rican diet, food security in rice is a major concern for Costa Rica.
The country has already experienced a major decrease in the production of beans, largely as a result of the
free trade agreement.34 Many developing countries entering into trade agreements are faced with political
disagreement based on food security, and Costa Rica has been no exception. Although not mentioned
explicitly in the Costa Rican constitution, food security reappears in many international agreements and has
been increasingly recognized as a justicable concept.35 As the sole subsidized crop remaining in Costa Rica,
there is also a strong case for food sovereignty in the country's rice production in order to maintain a level of
food security and ensure availability in times of global market crisis.
Stakeholders
Rice's role in the Costa Rican diet makes it of concern to virtually all citizens as consumers. However,
because of the higher proportion of income spent on rice in poorer households, such families suffer the
most from price increase and manipulation, and should be considered critical stakeholders in domestic rice
production.36 Costa Ricans are also stakeholders in the interest of preserving rice and domestic production as
a sense of cultural identity.
Domestic rice producers as stakeholders may be divided into two categories. While large, corporate
producers constitute only 40% of domestic producers, they produce approximately 80% of domestic rice. 37
Because price control benefits are allocated in proportion to production, the larger millers receive the vast
majority of price control benefits given to rice producers. Despite the lower benefits received, on average,
independent farmers depend on those benefits for a greater percentage of their net income. 38 While the larger
millers may gain or lose more money from benefits, it is clear that smaller farmers are reliant on support from
the Costa Rican government. Losing such benefits would potentially hurt smaller producers more than larger
producers.
Values
A primary concern of many Costa Ricans is maintaining rice production as part of their cultural
32
Umaña, V. at 46.
"Rice Problem In Costa Rica Becomes International." CentralAmericaData. Nacion.com, 17 Oct. 2011. <http://
en.centralamericadata.com/en/article/home/Rice_Problem_In_Costa_Rica_Becomes_International_Problem>.
34 Cespedes, R.
35 Costa Rica Const., tit. 5, art. 50.
36 Umaña, V. at 46.
37 Umaña, V. at 44.
38 Umaña, V. at 45.
33
9
identity. While globalization is often viewed as a favorable concept, one negative societal reaction to
globalization is a need for a sense of cultural identity.39 Costa Ricans recognize rice as a distinguishing
characteristic of their culture. For example, in 2008 Costa Rica declared the first annual National Gallo Pinto
Day to honor their unofficial national dish by serving about 50,000 people more than 3,000 pounds of the rice
and bean mixture.40 With 40% of rice currently being imported from the United States, there is a significant
desire to maintain some control of a food that defines much of the culture’s food basket.41
Another, perhaps more pressing concern, is the matter of food security. As the only price controlled
crop remaining in Costa Rica and as a high nutrient crop, domestic rice production offers Costa Rica a lifeline
in food supply. The FAO believes that "all people at all times should have physical and economic access to
the basic foodstuffs that they require, and that there should be stability in the supply, an adequate amount of
food and that it should reach those who need it" and identifies a minimum standard as the right to be free from
hunger.42 While the secured access, or right to food, is not explicitly stated in the Costa Rican Constitution,
the constitution provides that "[t]he State shall procure the greatest welfare of all inhabitants of the country,
organizing and promoting production...."43
Advocates for free trade in agriculture argue that national food security will become irrelevant with
globalization and complete compliance with free trade. This argument, however, fails to address the possible
future impacts of global warming and ignores cultural and economic concerns. As a resulting issue of free
trade agreements, food security is an ongoing concern, particularly for developing countries.44 One of the
greatest advocates for the right to adequate food is the FAO, which sites several international agreements
which recognize the human right to food.45
Significantly, the International Covenant of Economic, Social, and Cultural Rights (ICESCR)
addresses food security within a free trade context. Article 11(2) of ICESCR states that "[t]he States Parties
to the present Covenant, recognizing the fundamental right of everyone to be free of hunger, shall take,
individually and through international cooperation, the measures, including specific programs, which are
needed, taking into account the problems of both food-importing and food-exporting countries, to insure an
equitable distribution of world food supplies in relation to need."46 Similarly, the Committee on Economic,
Social, and Cultural Rights (CESCR) recognized the responsibility of states to take into consideration the food
security responsibilities of other states when entering into international agreements. 47
These agreements would seem to require consideration for foreign agriculture practices when contemplating
free trade agreements. While agreements such as CESCR and ICESC are "voluntary guidelines" and not
legally binding, the FAO states that "[i]t is increasingly recognized that legal recognition and protection of the
right to food could be used to further food security in all countries."48
39
Leiber, R.J., & R.E. Weisberg. "Globalization, Culture, and Identities in Crisis." International Journal of Politics,
Culture and Society 15.2 (2002): 273-96. www.jstor.org. <http://www.jstor.org/discover/10.2307/20020163?
uid=3737816&uid=2129&uid=2&uid=70&uid=4&sid=56289976143> at 274.
40 Leff, A. "The Rice and Beans War." Globalpost. 23 Mar. 2009. <http://www.globalpost.com/>.
41 Cespedes, R. Personal interview.
42 Food and Agriculture Organization of the United Nations. FAO.org. Food and Agriculture Organization, 2006. <www.fao.org/
docs/eims/upload/214344/RtFG_Eng_draft_03.pdf> at 57.
43 Costa Rica Const., tit. 5, art. 50.
44 Williams, G.W., W.R. Grant, and B. S. Fisher. Afcerc.tamu.edu. Rep. no. C-1-90. Texas A&M University,
1990. <http://afcerc.tamu.edu?publications/Publication-PDFs/CR-0190R%20Food%20Security%20and%20The%20Gatt%20The%20Case%20of%20Japanese%20Rice.pdf>.
45 Food and Agriculture Organization of the United Nations. FAO.org. Food and Agriculture Organization, 2006. <www.fao.org/
docs/eims/upload/214344/RtFG_Eng_draft_03.pdf> at 56.
46 Id. at 56.
47 Id. at 57.
48 Id. at 58.
10
Food sovereignty is a growing global movement that reaches beyond simple matters of access to
food. The ideology behind food sovereignty addresses food security, economic and cultural concerns. As
both the only remaining price controlled crop and major staple in the Costa Rican diet, rice production is a
preferable candidate for food sovereignty. Rice sovereignty could target poorer households by lowering costs,
as well as rural communities by offering job security. Costa Rica's underlying challenge is reconciling a form
food sovereignty in rice production with their obligations to the free trade agreement in a way that meets the
needs of all key stakeholders.
49
Agricultural Practices and Environmental Implications
Rice Production Practices
The species of rice cultivated in Costa Rica is oryza sativa communis and consists of several popular
varieties that are continuously researched in order to improve and develop new cultivars specifically
developed for Costa Rica.50 The traditional method for cultivating rice includes a well managed regime of
flooding the field from planting until the rice is ready for harvest. Immediately prior to harvest, the field is
drained to a minimal depth in order to facilitate the harvest. The depths of water during the process should
vary with the phases of the rice crop development and will have an effect on weed and pest management
practices. The four phases of rice crop development are (1) the seedling stage, which includes germination
until the start of tillering, (2) the vegetative state, from the start of tillering until the panicle begins to form, (3)
the flowering stage, from panicle initiation until the rice flowers are fertilized and (4) ripening, from when the
flowers are fertilized until the rice is ready for harvest.51 These stages are dependant on several variables,
including the cultivar used, pest problems, soil temperature, air temperature, irrigation, length of the growing
day and numerous other factors. Ideal conditions will result in improved productivity.
During the establishment of the rice stand, a depth of 1-4” is prefered. When the rice grows in
height, deeper water will help control terrestrial weeds, such as watergrass. The greater water depth can be
maintained on the field through the rice heading and the panicles become developed. Empty florets may
occur if the rice is exposed to cooler temperatures during this time, so a depth of 6-7” should be continuously
maintained. Overall, between 5 and 9 acre-feet of water are delivered to the rice field over the time of
production.52 Due to the specific water level demands and quantity of water demanded in the rice paddies,
irrigated rice fields are 24% more productive than rainfed rice fields.53
Rice has two cropping cycles a year in the Tempisque Basin as a result of the irrigation provided by
Arenal-Tempisque River Irrigation District (PRAT). The harvesting and land preparation of these cropping
cycles is highly mechanized. These two cycles typically run from January to May and from July to November
and the planting to harvest time ranges from 110 to 140 days. Higher quality rice usually requires a longer
time in field. Summer planting tends to require fewer applications of fungicides and herbicides, but fertilizer
applications are higher in order to take advantage of the optimal growing conditions.54 It is suggested that
fertilizer is applied four times at approximately 184 kg/ha, as demanded by the technological package utilized
by the rice farmers. Nitrogen, phosphorus, potassium, and zinc are the principal components of the applied
fertilizer, although it is unclear the proportions and actual amount of each nutrient utilized as application of
49
"What Is Understood by Food Security and Food Sovereignty?" Latin American Solidarity Centre, <http://www.lasc.ie/content/
what-understood-food-security-and-food-sovereignty>.
50 Loaiciga, H.A. & T.H. Robinson at 111.
51 National Research Council. Alternative Agriculture. Washington, D.C. National Academy Press, 1989. Print. 405.
52 Id.
53 Umana, V. at 43.
54 Loaiciga, H.A. & T.H. Robinson at 111.
11
fertilizer and other agrochemicals are rarely recorded.55 It is also unclear if silicon is applied to the fields, or if
it is even necessary. Although it is not an essential plant nutrient, silicon application has been shown to
increase rice yields significantly by enhancing the fertility of the rice spikelets. 56 The application of any
agrochemical is highly variable from farm to farm and, thus, the development of an effective application
program is a great area of opportunity.57
Numerous diseases will affect rice production if precautions are not taken. Stem rot is a fungus
commonly found in rice production and the primary control of stem rot is burning the rice straw following
harvest. If the straw is burnt in the fall, disking the soil following the burning is the most effective way to
control stem rot and will also incorporate the organic matter and remaining nutrients into the soil. Other
diseases of concern in humid regions, like Costa Rica, are seed rot, sheath blight, and brown leaf spot. 58
Agrochemicals to control these problems are usually applied on an as needed basis. Pesticides are also
required on an as needed basis to control armyworms, leaf miners, midges, and other common pests
detrimental to rice production.
Tempisque Rice Production
The Tempisque River Basin is an extremely important agricultural area, especially in regards to rice
production. Forty-five percent of the total national rice production originates from this area due to its optimal
soil and irrigation system. The clay soil has a pH near 7 and a mean temperature at a very stable 30 degrees
celsius.59 The average yield in this area is approximately 7.66 t/Ha, which is significantly higher than the
nationwide average production of 3.52 t/Ha.60 Unfortunately, these benefits of the basin do not necessarily
translate to economic success. There are many small farmers producing rice in the Tempisque Basin that
experience higher production costs (up to 18%) due to the inability to achieve economies of scale like the
larger rice producers.61
Costs faced by rice farmers in the Tempisque Basin include irrigation tariffs, fertilizer costs, and
equipment maintenance and fuel. With the rising costs of fertilizer and fuel, many farmers struggle to keep
costs down while performing necessary activities on their farms. Fertilizer is applied in a standard regime
prior to and during the time the rice is planted in the field. Fertilizer reduction and BMP’s are not actively
pursued or applied, especially on smaller farms where high productivity is the ultimate concern. Application
rates and fertilizer needs are dependent on the soil, water, and variety of rice grown. Recommendations in the
United States suggest around 100 lbs of nitrogen per acre be applied preflood and then a second application of
45 lbs per acre be applied between green ring and .5” internode elongation.62 Phosphorus recommendations
range from 40 to 60 lbs/acre at a pH greater than 6.5, but as with the Nitrogen recommendations, these
recommendations are dependent on soil and water testing for available nitrogen and phosphorus. 63 The
National Service for Irrigation and Drainage (SENARA) manages PRAT and sets tariffs and irrigation
allotments for farmers in the basin. The current tariff is approximately $40 per hectare. 64 SENARA also
55
Umaña, V. at 48.
Tamai, K. & J.F. Ma. “Reexamination of silicon effects on rice growth and production under field conditions using a low silicon
mutant.” Plant and Soil 307.1-2. (2008) at 21-27.
57 Loaiciga, H.A. & T.H. Robinson at 111.
58 National Research Council at 405.
59 Loaiciga, H.A. & T.H. Robinson at 109.
60 Umaña, V. at 45.
61 Id. at 44.
62 Wilson, C.E. “New fertilizer recommendations for rice.” Delta Farm Press at 1.
63 Wilson, C.E., N.A. Slaton, S. Ntamatungiro, D.L. Frizzell, W.B. Koen & R.J. Normas. “Phosphorus fertilizer recommendations
for rice.” Better Crops 83.4 at 9.
64 Umaña, V. at 46.
56
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controls and monitors the amount of water utilized on a field by field basis, keeping water depths on the rice
fields at a fairly stable 1-2” throughout the rice production process.
Although the impact of agrochemical applications in the Tempisque Basin is of a great concern,
studies “indicate little to no current environmental impact in the canal waters or soils from rice paddy
nutrients... and the effluent waters (are) comparable to the waters entering the fields at the irrigation inlet
canals.” There are also no detection of pesticides and herbicides in the effluents and it is suspected they may
be rapidly biodegraded in the warm tropical climate with the significant amount of solar irradiance. 65 More
frequent sampling is necessary to determine if this is true or not, but it appears rice production has a minimal
impact on water quality entering Palo Verde.
Alternatives to Rice Production
Rice is mostly consumed in the country in which it is produced and Costa Rica is one of the highest
per-capita consumers of rice in the world. The country is currently very dependent on in-country production
which provides 60% of the rice milled and consumed. This dependence on foreign production could change if
Costa Rica were to remove rice subsidies and make rice producers unable to compete with prices on the
international market. Alternative crops that can be grown in the Tempisque Basin may become more attractive
options in the future as demand, price, and production may be more stable and profitable than rice. Since rice
has the lowest productivity per acre compared to alternative crops in the basin, pineapple, sugarcane, and
other potential specialty crops may soon displace much of the rice production.66 This shift from rice to other
agricultural products may also increase the environmental impact of agricultural production in the basin.
Sustainable Rice Production
There are many opportunities for improvement of rice production in the Tempisque Basin in order to
improve the sustainability and environmental effects of production. Incorporating these techniques may lower
agrochemical applications, decrease environmental impacts, maintain productivity, decrease costs, and
increase the longevity of rice production in the basin. Techniques to be considered are as follows:
● Rather than removing rice straw for cattle forage in the summer, incorporating the straw into the soil
and then flooding the fields can reduce fungal problems as well as allow an additional 50 lbs N/acre
and 140 lbs K2O/acre to be available for the following season’s crop.67
● Pesticides, herbicides, and fungicides should only be applied as needed. This requires constant
monitoring in order to prevent significant damage from infestations. Farmers will record and track all
applications of agrochemicals used and properly calibrate equipment.68
● Nutrient application should be based on soil and water testing results. Fertilization should be timed
to plant need and should be injected or incorporated into the soil rather than broadcasted and the
equipment/application should be well calibrated in order to apply precise amounts. When possible,
utilize animal manures and organic fertilizers.69
● Rotate crops on a regular basis in order to control diseases, insects, and weeds. Legumes offer an ideal
crop to integrate into the rotation as they can reduce or replace the need for nitrogen fertilizer. 70
● Follow a strict water depth regimen to help control weeds and insects. When establishing rice plants,
water depth should be at 1-4”. Once rice has been established, a maximum depth of 6-7” should be
65
Loaiciga, H.A. & T.H. Robinson at 115.
Umaña, V. at 43.
67 Byous, E.W., J.F. Williams, G.E. Jones, W.R. Horwath & C. van Kessel. “Nutrient requirements of rice with alternative straw
management.” Better Crops 88.3 at 6.
68 “Rice production best management practices.” LSU AgCenter Research and Extension. (2000) at 15-16.
69 Id. at 21.
70 Id.
66
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maintained.71
Agricultural and Environmental Recommendations
Location of Rice Production
Rice production is located in the lower watershed in the area closest to the Palo Verde wetland and
offers an opportunity to be a biological buffer to minimize the impacts of intensive agricultural production in
the basin. Rice paddies also offer an alternative habitat for migrating water birds and native fauna and may
serve to utilize nutrients found in the runoff from other production facilities that normally would be directly
deposited into the wetland and river.
Currently, rice production uses irrigation from the canals that come directly from Lake Arenal and
the effluent from the rice fields leaves through the drainage canals that empty into Palo Verde. An alternative
approach that should be considered is utilizing water from the drainage canals to irrigate the rice farms, thus
using the nutrients that runoff from sugarcane, dairy, tilapia, and beef production in the upper regions of the
Tempisque Basin to supplement nutrient needs of rice production. This change may not only improve water
quality emptying into Palo Verde from the drainage canals, but will also reduce the demand of rice production
on the water that is arriving directly from the Arenal irrigation canals and allow rice producers to incorporate
suggested flooding regimes without water quantity concerns. Diverting this drainage water into rice fields
can reduce phosphorus in the water by allowing it to be taken up by the rice plants or algae in the water and
denitrification can occur due to the anoxic conditions created in the flooded paddies. 72
Role of Rice in the Tempisque Basin
Palo Verde is home to a very sensitive and unique ecosystem and the wetland within the park has been
designated a Ramsar wetland of international importance. Unfortunately, activities within the watershed have
led to the wetland being included in the Montreux Record as a site where significant ecological changes have
occurred. In Palo Verde, the invasion of Typha domengensis (Cattail) stands is evidence of the altered nutrient
and hydrologic loading.73 Rice production in the Tempisque offers a unique opportunity to positively affect
the nutrient loading and hydrologic problems faced in Palo Verde. The rice paddies are located in the lower
regions of the watershed and are at the end of the irrigation channels that provide water for aquaculture,
sugarcane, beef, dairy, and forage production operations in the basin. If the rice paddies are able to use the
effluent from these production facilities and are operated sustainably and responsibly, they can reduce total
nitrogen, total phosphorus, and chemical oxygen demand by 56, 68, and 53%, respectively, from the waters
that would normally be directly inputted to the sensitive Palo Verde wetlands.74 A proper water level regime
has the potential to treat a significant amount of water per hectare each growing season. Replacing the
irrigation water currently being used from Lake Arenal with effluent from other agricultural production in the
basin will also increase the volume of water unaffected by agricultural practices reaching Palo Verde. 75 Water
quality studies identifying nutrient content of water entering the rice paddies must be done in order to quantify
71
Williams, J.F., S.R. Roberts, J.E. Hill, S.C. Scardaci & G. Tibbits. “IPM: Managing water for weed control in rice.” California
Agriculture 44.5 at 10.
72 Schueneman, C., C. Rainbolt & R. Gilbert. “Rice in the crop rotation.” University of Florida IFAS Extension. SSAGR23 at 5.
73 Newman, S., J. Schuette, J.B. Grace, K. Rutchey, T. Fontaine, K.R. Reddy & M. Pietrucha. “Factors influencing cattail
abundance in the northern Everglades”. Aquatic Botany 60 (1998) at 267.
74 Wang, X., X. He, B. Chen & C. Xie. “Rice field for the treatment of pond aquaculture effluents.” African Journal of
Biotechnology 10.34 (2011) at 6464.
75 Bhandari, B.B. “Making rice paddy compatible with wetland conservation objective.” Successful Cases on Sustainable Rice
Paddy Farming Practices and Wetland Conservation in Asia. (2011) at 53.
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the amount of fertilizer that must be added to the fields to ensure rice production is maintained, however
fertilizer added according to recommendations has shown to have no effect on the capacity of the rice paddies
to reduce the water discharged from the fields.76
Rice production also offers the unique ability to offer the ecosystem service of waterfowl and native
fauna habitat creation. As the Palo Verde wetlands experience a continuous struggle to provide open water
habitat to migrating waterbirds and other local fauna, rice paddies offer an attractive site alternative for
nesting and foraging. Furthermore, rice paddies can function as a human-made wetland and rice production
done with ecosystem interconnectivity in mind has the potential to reduce pesticide use, increase native
species populations, increase biodiversity, increase groundwater recharge, and control flood and erosion. 77
These alternative habitats are even more important as time passes due to increased human interference with
natural habitats and alteration of wetland sites throughout the country. It is important for rice farmers to
recognize the ecosystem service their fields offer and the potential impact sustainable practices can have on
these species, especially when considering the application of herbicides and pesticides. If rice paddies are
recognized for their habitat value but sustainable practices are not instituted they may serve more as an
ecological trap, contaminating and potentially harming wildlife that are attracted to the fields.
Recommendations
In order to maintain rice production in the Tempisque Basin as well as preserve the valuable and
sensitive Palo Verde ecosystem, several recommendations for rice production should be considered.
1. Soil and water testing will be conducted in order to better determine the fertilizer application rates
needed for each field. Effluent from the rice fields will be tested in order to adapt and improve
management techniques accordingly.
2. Rice production will utilize irrigation from the drainage canals utilizing a proper flooding regime in
order to utilize nutrients from other production practices and reduce the impact of agriculture on the
Palo Verde wetlands and the Tempisque River. Investment in increased technology and equipment
may be necessary in order to facilitate the use of the drainage water.
3. Rice producers will utilize best management practices in order to reduce the environmental impact of
their practices and increase the ecosystem services provided through their production of rice.
4. CONARROZ will provide training in best management practices to farmers on various techniques
to improve the efficiency, production, and environmental impact of rice farming activities. Farmers
will develop nutrient management plans with the assistance of CONARROZ and will reevaluate these
plans every 3 years.
Conclusions and Recommendations
Costa Rica pioneered the PES approach in 1997 by developing a formal, country-wide program of
payments to reduce deforestation rates.78 PES appears to be the best option to ensure that domestic rice
production continues in Costa Rica while also complying with CAFTA. As an added benefit, the shift
towards PES could improve conditions for small-scale farmers and poor rice consumers in addition to
improving the ecology of the Tempisque Basin.
PES deals concentrate on maintaining a flow of a specified ecosystem service in exchange for
76
Wang, X., X. He, B. Chen & C. Xie. at 6464.
“Agriculture and wetland interactions: recent progress and STRP-related activities 2009-2012.” 11th Meeting of the Conference
of the Parties to the Convention on Wetlands (Ramsar, Iran, 1971) at 2.
78 Pagiola, Stefano. Payments for Environmental Services in Costa Rica. Rep. 2005. Print. at 1.
77
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something of economic value. However, the defining factor of a PES transaction is that the payment causes a
benefit to occur where it would not have otherwise, meaning that the service can be quantified and tied to the
payment. To ensure that the ecological service is maintained, the buyer expects “regular and independent
verification” of the seller’s actions and their impact. Sellers are thus required to “maintain or enhance specific
ecological structures and functions beyond what would have happened in the absence of payment, and remain
accountable to independent verifiers (if a buyer requires) to ensure that the ‘service’ being paid for is indeed
being delivered.”79 For the sellers, bundling several types of services together can maximize income and
diversify risk.80 If the rice producers in the Tempisque Basin improved their methods of production, they
could “sell” the services of watershed protection and increased biodiversity.
In order to implement a PES system, four core steps must be followed: (1) identifying ecosystem
service prospects and potential buyers, (2) assessing institutional and technical capacity, (3) structuring
agreements, and (4) implementing the PES agreements.81 Step one includes defining, measuring, and
assessing the ecosystem service being provided, determining the marketable value, identifying potential
buyers who benefit from the service, and considering whether to sell as individuals or as a group.82 For
Tempisque Basin rice producers, the ecosystem service prospects are cleaner water, increased biodiversity
and increased habitat for migrating waterfowl and native fauna through creating simulated wetlands adjacent
to Palo Verde National Park.83 These services would benefit the rice farmers, as they could maintain
production even with high costs. The services would benefit the consumers by enabling them to pay a lower
price for the product without price controls. In addition, the tourism industry would benefit from increased
biodiversity and additional wetlands. These services have a marketable value, which would be determined by
what the potential buyers would be willing to pay for them.84 This “willingness to pay” is often mandated in
regulated markets, but in voluntary PES deals it may be negotiated based on quantification of the economic
benefits provided, the relative costs of alternatives to the services provided and the pricing of similar deals. 85
Potential buyers for the services potentially provided by Tempisque Basin rice producers include the
government, Palo Verde National Park, and upstream polluters whose waste would be mitigated by the newly
created wetlands. Some consideration should go into deciding whether the farmers should sell as individuals
or as a group. Group sales may be easier to negotiate but could unfairly disadvantage small-scale farmers.
Individual sales are inherently more complex, but would empower each farmer to make decisions for him or
herself. Once this initial step is completed, those involved must complete the remaining three steps: assessing
institutional and technical capacity, structuring the agreement, and finally, implementing the PES. 86 These
steps are not discussed in depth as they are highly technical and beyond the scope of this recommendation.
However, it is our recommendation that this PES structure and agricultural recommendations be considered in
order to preserve rice production in the Tempisque Basin and minimize the impact of agricultural practices on
the sensitive Palo Verde National Park.
79
Payments for Ecosystem Services: Getting Started : A Primer. Washington, D.C.: Forest Trends, 2008 at 3.
Id. at 22.
81 Id. at 28.
82 Id. at 29.
83 “Agriculture and wetland interactions: recent progress and STRP-related activities 2009-2012” at 2.
84 Payments for Ecosystem Services at 31.
85 Payments for Ecosystem Services at 31.
86 Id. at 20.
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