The Baja California Sur state legislature approved a formal petition to Mexico’s federal Treasury (SHCP) demanding transparency in the ongoing liquidation of the Financiera Nacional de Desarrollo Agropecuario (FND), the national farm lending institution dissolved in May 2023.
Lawmakers in La Paz are asking SHCP to coordinate with INDEP (Instituto para Devolver al Pueblo lo Robado), the federal agency that manages recovered public assets, to stop what they describe as aggressive foreclosure actions against small rural producers across the state.
Borrowers Face Property Seizures
The FND served as Mexico’s primary government-backed lender for farmers, ranchers, fishers, and forestry workers. Since its dissolution more than two years ago, borrowers who held FND loans have faced legal uncertainty and administrative delays. BCS legislators say the liquidation process has led to disproportionate seizures of property belonging to rural families.
The legislative petition specifically calls on SHCP to provide a full public accounting of how FND funds were managed during and after the institution’s closure. It also demands the return of loan guarantees to borrowers who have already fulfilled their repayment obligations.
A Lifeline for Rural BCS Communities
Agriculture, fishing, and forestry remain significant economic activities in Baja California Sur, particularly in communities outside the tourism corridors of Los Cabos. Many small-scale producers in the state relied on FND financing for equipment, operating costs, and land purchases. Without a clear successor institution, these borrowers have been caught in a bureaucratic gap between SHCP and INDEP.
The BCS Congress is calling for the creation of fair conciliation mechanisms that would allow borrowers to resolve outstanding debts without losing their land or equipment. Legislators characterized the current situation as one where compliant borrowers are being punished by a process they did not create.
What the Legislature Wants
The formal exhortation, while not legally binding, gives BCS rural communities an official legislative voice in a federal process. The petition asks for three specific outcomes: transparent financial reporting on the FND liquidation, an immediate halt to foreclosures on borrowers who are current on payments, and a formal dispute resolution process for contested debts.
SHCP has not publicly responded to the BCS legislature’s request. The state congress approved the measure with broad support, though specific vote tallies were not reported.
This story was first reported by BCS Noticias.