Agricultural News
Ag Groups Agree in Testimony on Value of Trade with Cuba
Fri, 12 Mar 2010 6:14:44 CST
The House Ag Committee met Thursday to review U.S. agricultural sales to Cuba. Committee Chairman Collin Peterson introduced legislation to facilitate expanded U.S. ag trade with Cuba last month. The bipartisan bill is co-sponsored by nearly 40 other members of Congress - including Jerry Moran of Kansas, Rosa DeLauro of Connecticut and Jo Ann Emerson of Missouri. Peterson said Thursday that the restrictions on agricultural trade with Cuba have failed to achieve their stated goal - and instead have hand-delivered an export market in our own backyard to the Brazilians, the Europeans and our other competitors around the world.
Several ag and commodity groups were represented at the hearing. The Presidents of the American Farm Bureau Federation and National Farmers Union both testified. As did producers representing the U.S. Rice Producers Association, National Association of Wheat Growers, National Milk Producers Federation, National Corn Growers Association and American Soybean Association.
Bob Stallman of the American Farm Bureau said this act would lift some key U.S.- imposed restrictions on trade with Cuba. The bill would reverse the restrictions on payment of cash in advance, eliminate the third country bank requirement and lift the ban on travel.
Because of the great market potential, Farm Bureau believes passage of the legislation would make agriculture a strong player in the Cuban market and increase U.S. agricultural exports. Stallman said - we have seen the promise the market holds. Unfortunately, because of restrictions on U.S exports to Cuba, U.S. farmers have not been able to benefit from the full potential of the market.
Since being allowed to trade with Cuba in 2000, on average the United States has exported roughly 320-million dollars in agricultural products per year, reaching a high of almost 700-million in 2008. Stallman pointed out - the United States is not viewed by Cuba as a reliable supplier. Our competitors do not have the same obstacles in trading with Cuba we face. Stallman said, - eliminating these restrictions will decrease the advantages the United States has given our competitors and restore the advantage to U.S. farmers.
NFU President Roger Johnson testified, saying – even though U.S. firms offer reliable trading partners, quality products and competitive prices, current U.S. policy hampers their ability to supply the Cuban market. He said - I can speak from firsthand experience on the importance of ending the Cuban embargo and establishing trade relations with Cuba in an effort to better the U.S. agriculture market.
ASA Board member Scott Fritz, a soybean producer from Winamac, Indiana, said - we can no longer sit on the sidelines and watch our competitors continue to supply a market where we have a natural advantage. Fritz added - if the travel ban is eliminated, the number of U.S. citizens traveling to Cuba annually would increase to between 500-thousand and 1 million. This growth in travel would bring in more hard currency, enabling the Cuban state-trading agency to buy more U.S. agricultural products.
We have an audio wrap with Johnna Miller of American Farm Bureau on why the group sees trade potential when it comes to Cuba and US farmers. Click on the Listen Bar below to listen to that report.
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