Money for agave farmers, but the glut continues

The federal agriculture secretariat (Sagarpa) recently mandated 59 million peso for farmers stuck hoarding low-value agave, which not all that long ago was dubbed "blue gold." The agave glut, which came about after a price spike in the late 1990s, has hit farmers in Western Mexico hard - especially in Jalisco. The high prices induced many to enter the industry and farmers in states like San Luis Potosi and Zacatecas - which are not part of the authorized agave-growing or tequila-producing regions - planted agave, as it grows in the some of the most steep and inhospitable terrain imaginable.

Even with the help from Segarpa, the glut should persist until 2009, according to the Jalisco Rural Development Secretariat. At that time, another shortage could come again - restarting the boom-bust cycle.