Cuba Financing Provisions Support Voiced

April 26, 2002

Twenty-seven agricultural groups signed a letter to House Agriculture Committee member Rep. Cal Dooley (D-CA), supporting the congressman's motion to instruct the House farm bill conferees to accept the Senate language regarding the Cuba financing provisions. The groups also sent letters to Bush administration officials expressing disappointment with the recent action taken by the administration to deny visas to Cuban trade officials.

"Currently," said National Corn Growers Association President Tim Hume, "United States law prohibits our agricultural exporters wishing to sell food and agricultural commodities to Cuba from using U.S. banks or financial institutions to execute the sale. This prohibition increases the cost of the overall export transaction by adding additional banking fees. It also increases the complexity of the export sale, making it more difficult to compete against foreign suppliers."

Provisions in the Senate farm bill would eliminate the cash purchase requirement and allow for private financing.

"The purpose of the Cuban travel," said NCGA Director of Public Policy Keira Franz, "was for Cuban officials to meet with U.S. suppliers, inspect facilities, discuss sanitary and phytosanitary issues and verify U.S. procedures and standards associated with the sale of U.S. food and agricultural exports to Cuba."

The letters concluded by saying: "We ask your help in keeping this small but viable market open for export sales of U.S. food and agricultural commodities. This recent action by the Administration puts all future Cuban food and agricultural purchases at risk at a time when American farmers and ranchers are under extreme economic stress from low prices and decreasing world market share.