The ejido—communal land tenure born of the Mexican Revolution (Article 27, 1917 Constitution)—aimed to give land to the landless. By 1990, 50% of Mexico's land was ejidal. Yet rural poverty persisted. Eight structural flaws explain why.
Ejidatarios held usufruct rights (use), not title. Cannot mortgage → no bank loans. Relied on Banjercito / FIRA (state lenders) — bureaucratic, insufficient, politicized. No capital for seeds, fertilizer, irrigation, machinery.
Green Revolution (improved seeds, chemicals, irrigation) bypassed ejidos. Extension services collapsed 1980s–90s. Farmers used saved seed, rain-fed, manual labor. Yields stagnated (maize: 2–3 t/ha vs 10+ t/ha commercial).
Inheritance split plots. Average ejido parcel: 2–5 hectares. Too small for mechanization, economies of scale, or market surplus. "Minifundia" trap.
No rural roads → high transport cost, spoilage. No cold storage → forced sale at harvest glut (low price). No irrigation → climate vulnerability. Public investment favored commercial zones.
1992 Reform (Salinas) allowed certificación (parcel mapping) and dominio pleno (full title) via 2/3 assembly vote. But: slow, corrupt, contested. Most ejidos never certified. Title uncertainty kills investment.
Ejido commissions (comisariados) often controlled by local caciques / PRI machine. Resources (fertilizer, credit slots, PROCAMPO payments) distributed patron-client style. Assembly votes manipulated.
No collective marketing. Coyotes (intermediaries) buy at farm gate at 30–50% of wholesale. No market info, no storage to wait for price. NAFTA (1994) flooded market with subsidized US corn — ejido maize uncompetitive.
Staples (corn, beans) dominate. Low margin, high volatility. High-value (avocado, berries, vegetables) requires capital, certification, cold chain — absent in ejidos.
Ejidos prevented landlessness and preserved social fabric. But as a development model, they failed. Current focus: voluntary land regularization (PROCEDE/RAN), producer organizations, contract farming, irrigation districts, rural financial inclusion. The 1992 reform was necessary but insufficient without complementary investment.