Costa Rica has forged a landmark alliance with the Inter-American Institute for Cooperation on Agriculture (IICA) to revolutionize its agricultural sector through a comprehensive modernization strategy. The formal agreement, signed between the Ministry of Agriculture and Livestock (MAG) and the hemispheric organization, centers on implementing a groundbreaking Payment for Results (PfR) program backed by $140 million in funding from the World Bank and International Fund for Agricultural Development (IFAD).
The partnership was officially launched during the inauguration of MAG’s new digital single file system, with high-level participation from Costa Rican Minister of Agriculture and Livestock Víctor Carvajal Porras, Environment and Energy Minister Franz Tattenbach Capra, and IICA Director General Muhammad Ibrahim, who served as honorary witness to the signing ceremony.
This five-year initiative represents a paradigm shift in agricultural governance, structured around eight strategic indicators that IICA will technically verify. The program’s architecture encompasses six transformative pillars: digital transformation of agricultural systems, enhanced traceability mechanisms, infrastructure modernization, implementation of Nationally Appropriate Mitigation Actions (NAMAs), development of Payment for Environmental Services (PES) frameworks, and promotion of green financing strategies.
IICA’s role as technical partner leverages the organization’s regional expertise to ensure international standards in management, evaluation, and accountability. Director General Ibrahim emphasized the strategic importance of this collaboration, noting that ‘the transformation and modernization of the agricultural sector are essential to respond to national demands and global challenges.’ The Institute will work closely with ministries and private sector stakeholders to overcome institutional barriers and strengthen sustainable practices.
Beyond immediate operational improvements, the agreement positions IICA as a key policy advisor in strengthening Costa Rica’s agricultural public policies. The collaboration aims to create a more innovative and resilient agricultural sector that simultaneously addresses environmental commitments and international market requirements, establishing a new benchmark for sustainable agriculture in the Americas.