Expanding opportunities

Congressman Jerry Moran, R-Kan, is looking to give Kansas farmers a more open market for their products. This week he introduced legislation to expand one-way agriculture trade with Cuba.

The legislation eases current trade barriers and would make it easier for American farmers to sell grain and other farm products to Cuba.

In a bipartisan effort, Moran and Congressman Collin Peterson, D-MN, introduced H.R. 4645, The Travel Restriction Reform and Export Enhancement Act 2010, on Tuesday.

“The immediate impact will be the ability to sell more Kansas agricultural products to Cuba,” said Moran in an e-mail. “Making simple changes to align how Cuban buyers make cash payments to U.S. sellers with international trade standards, can make a significant impact on the Kansas economy, and it can be done without expanding the federal debt.”

Currently, Cubans are required to pay for American goods before goods leave U.S. ports. Advance payment is a requirement unique only to Cuba. The director of public policy for the National Corn Growers Association, DaNita Murray, said the advanced payments are burdensome to Cuban buyers. Other countries do not require Cuban buyers to make payments before goods leave their countries’ ports.

The bill also eliminates current trade barriers. Cuban buyers will be able to make a direct payment to a U.S. financial institution. Current rules call for Cubans to use a third party banking source to allocate funds to U.S. agriculture businesses and farmers. Murray said the measure would cause less hurdles for Cuban buyers.

Graphic by James Gutzmer

Area corn farmer Steve Yoder likes the proposed legislation because he feels it will increase demand for American corn.

"If you take the extra steps away it would just make it a lot easier for Cuba,” said Yoder. “It is an extra cost for them to buy U.S. food. That puts us at a disadvantage.”

Director of policy for the U.S. Wheat Association Rebecca Bratter said her organization has lobbied for expanding trade and to put a stop to the third party banking requirements. The association believes reforming trade to Cuba will only help American farmers.

"We normally sell close to 400,000 metric tons of wheat to Cuba,” said Bratter. “Just over the years, with all the requirements and the economic crisis, they just don't have the liquidity to keep purchasing from us.”

Bratter said wheat sales to Cuba dropped by 65 percent in the last year alone.

The proposed legislation would also lift travel restrictions to Cuba. The bill will allow for American farmers and ranchers to travel to Cuba for marketing their goods.

"The legislation allows for growers to have the ability to do market development work,” said Bratter. “(Growers) normally conduct market development work with all the other countries they export to around the world.”

Both Bratter and Murray stated if the legislation would pass, American farmers would be on an even playing field with other exporting countries for the Cuban market.

A representative from the Cuban American National Foundation said expanding trade to Cuba should be the last measure the government takes and called the bill preposterous.

"Back in 2001, (Congress) allowed for an increase in agricultural trade and that is what exist now,” said director of government relations Camila Gallardo. “U.S. companies can sell as much as they want to the Cuban government as long as they pay up front for the products. That is a system that works.”

Gallardo also said the bill will only help large agriculture companies and not the local farmer. The demand may grow, but it will be the large companies providing the additional goods, not many local farmers.

Yoder admits if the legislation passes he does not plan to make any changes in the way he produces his corn.

"No, I don't think (the legislation) would really change what we do in the Panhandle or in Liberal,” said Yoder. “(It) could help a little. U.S. farmers have always supported free open trade.”

Murray said she realized the legislation will receive criticism but she feels it is great movement by lawmakers. No matter the outcome she hopes trade continues with Cuba.

"We are actually very fortunate to move plenty of bulk corn to Cuba but we don't want to lose that,” said Murray.

Though very pleased with the legislation, Bratter feels the legislation could go a step further.

"I think it is a fantastic step in the right direction,” said Bratter. “In the future we would like to see continued open trade with Cuba. Open trade that would allow for the Cubans to travel here, to the United States.”

Moran supports expanding trade and has said there are more international markets to be expanded to.

For full story please see Sunday's Times

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