Programmes to pay grain producers above-market prices (Programa Ingreso Objetivo), to give per-animal subsidies to cattle ranchers (Programa de Estimulos a la Ganaderia) and to underwrite purchases of farm equipment (Programa Activos Productivos) may have led to increased intensification and expansion of agriculture, with negative impacts on biodiversity (Guevara-Sangine, 2009). Other harmful subsidies include VAT exemption for agrochemicals and electricity subsidies (OECD, 2008). Under the latter, pricing of electricity to pump water has been used to explain why so few farmers adopt water-saving technology despite significant pressure on water resources.