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Terry McClure, OFBF president, recently participated in a week-long trade mission to Cuba with AFBF President Bob Stallman and four other state Farm Bureau presidents.

The Farm Bureau delegation found there is a real need for food in Cuba, which could mean more markets for U.S. farmers. U.S. farm trade with Cuba jumped from zero to $250 million in the past year, and by 2005 could reach $1.5 billion. Stallman estimates 60 percent of Cuba’s food imports in the near future could come from the United States.

"This trip was a good step in normalizing trade relationships with Cuba. There are some very good markets for U.S. farmers," McClure said. "We’re hoping to bring that sentiment back to our legislators."

In a news conference from Cuba at the conclusion of the trip, Stallman reported the delegation met with President Fidel Castro and had lengthy conversations about agriculture, production costs and the various things they’re doing to restructure some of Cuban agriculture.

Pedro Alvarez, the head of Cuba’s food buying agency Alimport, said Cuba has already contracted with 1,000 American firms in 33 states. Sales to Cuba are permitted under a 2000 law that allows them to buy U.S. agricultural products on a cash basis only. The United States has a transportation cost advantage over competitors for Cuba’s agricultural markets. McClure said it costs the United States $15 per ton to transport food, whereas it would cost a Far East country between $45 and $60 per ton.

Stallman said Cuba is restructuring its agricultural production to concentrate on commodities it can produce cost effectively. For example, Cuba can purchase rice and sugar cheaper than it can produce it. On the other hand, Cuba’s fruit and vegetable markets, especially citrus fruits, are doing very well.

"The more we can sell overseas is beneficial to U.S. farmers," Stallman said. "Cuba has moved into the top 50 of (the United States') trading partners. We don’t want to get to the point where we do anything to lose an important market like Cuba."

Farm Bureau would like the ban on U.S. citizens traveling to Cuba lifted because it would provide additional resources for Cuba to use to buy food from the United States. McClure said overall, Cuba is underutilized. He said the cruise industry could literally walk right in and make a fortune. There are still many lavish hotels still standing in good condition.

"We already have Americans resenting the travel restrictions, and the interaction between the two countries can only bring positive benefits. It lends itself real well to good international relations," Stallman said.