Panama's Land Use: Agriculture Dominates, Not Forestry

Contrary to the image of a jungle-covered isthmus, agricultural land—not forest—covers the largest share of Panama's territory.

World Bank Data (2016)

• Agricultural land: 41.4% (pasture 28%, arable 7%, permanent crops 6%)
• Forest area: 43.6% (down from 58% in 1990)
• Other (urban, wetlands, barren): ~15%

Note: "Agricultural land" includes pasture (cattle ranching), which is extensive but low-intensity. Forest cover remains high globally but is declining.

Key Agricultural Zones

• Pacific "Dry Arc" (Herrera, Los Santos, Coclé): Cattle ranching, rice, corn, sorghum, watermelon, sugarcane.
• Western Highlands (Chiriquí, Veraguas): Coffee (Boquete, Volcán), vegetables, fruit, dairy.
• Central Panama (Panamá Oeste, Colón): Pineapple, banana, plantain, sugarcane (large plantations).
• Darién (East): Subsistence farming, timber extraction, expanding cattle frontier (deforestation driver).

Forest Cover: Still Significant but Threatened

• Panama retains ~43% forest—among the highest in Central America.
• Darién National Park (5,790 km²) and La Amistad (transboundary) protect vast primary forest.
• Deforestation drivers: cattle expansion, subsistence agriculture, illegal logging, mining, infrastructure (Pan-American Highway completion).
• REDD+ programs, indigenous comarcas (Guna Yala, Emberá-Wounaan, Naso Tjër Di) are key to conservation.

The Canal Watershed Factor

The Panama Canal watershed (3,300 km²) requires forest cover to regulate water for lock operations. This creates a unique economic incentive for reforestation and protection—linking global trade to local ecology.

Panama is a land of contrasts: a global logistics hub bisecting a biodiverse isthmus where cattle pastures and cloud forests compete for every hectare.