Colombia’s Coca Crop Substitution Plan to Cost $60 Billion

On Monday, March 3, President Gustavo Petro unveiled measures under the Catatumbo Plan during a Council of Ministers meeting.

This initiative, part of Colombia’s state of emergency measures, aims to eradicate 25,000 hectares of coca crops in one of the country’s most coca-dense regions. It seeks to achieve this without using chemicals.

The government plans to implement a voluntary eradication program, offering economic incentives for farmers to replace coca with legal agricultural products.

Gloria Miranda, director of the Illicit Crop Substitution Program, requested a budget of COP 362 billion ($60 billion) from the Ministry of Finance. This funding is intended to support the transition. The funds will provide alternatives for farmers reliant on coca cultivation while promoting sustainable and legal production models.

The program includes monthly payments of COP 1.2 million ($200) per family for 12 months to ensure financial stability during the transition. This payment represents 90% of Colombia’s minimum wage.

Beyond initial support, the program aims to transform local economies. It plans to invest COP 15–20 million ($2,500–$3,333) per family in productive projects. Priority will be given to women-led households and cooperative ventures.

Colombia’s Comprehensive Plan for Coca Eradication

Farmers will also gain access to loans with grace periods of up to five years through the Banco Agrario and other institutions. Of the requested COP 362 billion ($60 billion), COP 152 billion ($25 billion) will fund eradication payments, while COP 178 billion ($30 billion) will support productive projects.

The remaining funds will sustain other strategies within the plan. Despite risks from illegal groups, Miranda reported that farmers have already registered 3,000 hectares for eradication.

Payments are expected to begin next week once resources are allocated by the Ministry of Finance. In addition to crop substitution efforts, emergency measures include a broader COP 2.7 trillion ($450 billion) budget.

This budget is funded by taxes. It includes a 19% levy on online gambling and a 1% tax on coal and oil exports. Finance Minister Diego Guevara anticipates COP 1 trillion ($167 billion) in revenue within 90 days. He expects COP 3 trillion ($500 billion) by year-end.

This ambitious plan seeks not only to reduce coca cultivation but also to foster sustainable development in vulnerable regions. It aims to achieve this while navigating complex economic and social challenges.

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