Around 30% of Panama’s land is used for agriculture (23% for pasture and 7% for cultivation), with forestry occupying another 58% of the country. The agriculture sector is an important contributor to the Panamanian economy; in 2005, this sector accounted for 4.4% of Panama’s gross domestic product and 18% of total employment. Primary export crops include sugar cane, bananas, coffee, tobacco, and fruit while rice, beans and maize are mostly grown for the domestic market. The last La Niña events have been characterized by intense and continuous precipitation that has produced intense flooding in rural areas. La Niña’s impacts on agriculture were quite severe as it produced losses of more than 15,000 hectares and economic losses greater than US $6 billion, in particular around the areas of Chiriquí and Darién. Depleted or deteriorated natural resources are a significant barrier to agricultural production. Deforestation and related incidence of timber harvesting, forest clearance for livestock production, and slash-and-burn agriculture adversely affect about 51,000 hectares of natural tropical and tropical humid forests. A greater emphasis should be placed on reducing soil degradation, reforestation and developing and applying adequate insurance mechanisms for better management of public resources in light of natural disasters in the agriculture sector. If current soil and land management is improved, there is a potential for increases in rainfed rice and maize crop production in Panama, according to some future projections. 

This section provides insights into the climate change impacts on agricultural productivity indicators and the trends in agriculture related socio-economic indicators.