Ag Policy Blog

Ag Coalition Sees Opportunity in Renewed U.S.-Cuban Relationship

Chris Clayton
By  Chris Clayton , DTN Ag Policy Editor
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The U.S. Agriculture Coalition for Cuba praised the announcement Wednesday by President Barack Obama that the U.S. and Cuba will officially re-establish diplomatic relations on July 20 with the re-opening of respective embassies.

The Obama administration has changed policies to make it easier to do business in Cuba, but some changes, such as loosening travel restrictions or credit for trade, require Congress to pass legislation. That will be difficult because GOP presidential candidates in general oppose making any changes in relations between the two countries.

Agricultural groups see opportunities to boost exports to the island country of about 11 million people as the U.S. and Cuba work to formally end a 54-year-old embargo.

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Devry Boughner Vorwerk, chair of the U.S. Agriculture Coalition for Cuba (USACC) made the following statement this morning on the announcement that the United States and Cuba will open embassies in Washington and Havana:

“Farmers, ranchers and agribusinesses across the nation welcome this continued progress toward normalized relations with Cuba," said Devry Boughner Vorwerk, a Cargill executive who chairs the ag coalition. "Not only are embassies critical to strengthening commercial ties – affording diplomatic status suggests a willingness to engage constructively on many important matters. We’re hopeful today’s announcement will ultimately lead to an end to the embargo and increased economic opportunity for agriculture in both our nations. USACC will continue our work with members of Congress from both sides of the aisle who have expressed support for ending the embargo.”

Cuba exports about 80% of its food. USDA reports Cuba imported $415 million in agricultural products from the U.S. in 2013, but that number fell to $300 million last year. In a report released last week, USDA's Foreign Agricultural Service stated meat and poultry products make up about half of all U.S. exports to Cuba; soybeans and soybean meal account for 35% of exports. Corn takes up another 9% and all other ag exports account for 7%.

The U.S. market share in Cuba has fallen since peaking in 2008. The FAS report highlighted that U.S. ag exports to Cuba have substantial room for growth. http://www.fas.usda.gov/…

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Thomas Runholt
7/6/2015 | 3:34 PM CDT
Normal relations with Cuba should increase agricultural sales for the US but with unintended consequences. The US Cuban immigrant lobby is arguably as powerful as the AG lobby. That means real damage for the sugar program as Cuban supplies are accommodated as happened when Mexico got a place at the ttables