Mexican rural population is predominantly living in poverty and vulnerable to a number of hazards. Mexico is very prone to natural disasters, and global environmental change may be contributing to the losses from weather-related disasters. The purpose of this analysis is to examine how natural disasters and liberalized trade affect agricultural livelihoods, their implications upon the rural poor, and their influence on migration patterns. In addition, this project aims at assessing policy options to reduce the vulnerability of small-scale farmers (e.g. government-supported insurance schemes) within the framework of the governmental withdraw from subsidizing the agricultural sector over the past 18 years, investigating farmers’ coping and adaptive strategies as well.