Cuba, Dairy Snag Ag Appropriations Conference

September 23, 1999

The Senate-House agricultural appropriations conference committee is considering a Republican proposal to exempt food and medicine from U.S. trade embargoes but not for Cuba; Cuba has to become a democracy first. That issue and negotiations on dairy reforms bogged down the committee Wednesday.

Republicans insisted on strict language on Cuba -- that the exemption would not apply until Cuba becomes a democracy. That disappointed farm organizations that consider Cuba a potentially lucrative market for U.S. products.

The Republican leadership also says $8 billion in farm relief is the maximum Congress can give this year. Of that, $500 million would go for disaster relief. Disaster aid was not included in the $7.4 billion Senate package.

Rep. Marcy Kaptur (D-OH) believes more will disaster relief will be needed beyond the $500 million. She noted estimates of losses exceeding $1 billion in North Carolina, inundated by Hurricane Floyd last week.

REUTERS reports that $5.54 billion of the bill's aid would be counted against fiscal 1999 outlays in an attempt to avoid spending from the Social Security trust fund. But that would mean spending the money by Sept. 30, a week away, and USDA probably could not write checks that fast. Senate Majority Leader Trent Lott (R-MS) said it was not clear yet how the $5.54 billion would be spent.