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by Lynn Snyder

At face value, you might wonder why there is such a fuss about Cuba. The country is roughly the size of Pennsylvania and has a population of 11 million, which is about the size of Ohio. It is a communist country suffering an economic depression, and continues to be under the control of President Fidel Castro, who has been in power since 1959. But with its capital Havana lying only 90 miles from the coast of Florida, and its need for many agricultural products, it is an inviting trading partner.

"Before [Cuban President] Castro, Cuba was one of our biggest trading partners," said Ohio Farm Bureau Federation (OFBF) President Terry McClure. "We don't talk about this enough. Cuba is one of our last opportunities to expand trade."

Farm Bureau policy toward Cuba is clear. The organization supports immediate resumption of normal trading relations with Cuba and believes all agricultural products should be exempt from embargoes and unilateral sanctions, except in the case of armed conflict.

Last fall, McClure participated in a week-long trade mission to Cuba with American Farm Bureau Federation (AFBF) President Bob Stallman and four other state presidents. The Farm Bureau delegation found there is a real need for food in Cuba. McClure said there are numerous commodities the United States could provide to Cuba, some of which could come from Ohio.

Fidel Castro led a rebel army to victory in 1959 and has been in leadership ever since. Not only is he president, but chief of state, head of government, first secretary of the Communist Party and commander-in-chief of the armed forces. Castro controls all aspects of life through the Communist Party and its affiliated organizations. The United States, under President John F. Kennedy, initiated an embargo against Cuba in 1961, because of Castro's alliance with the Soviet Union. This curtailed trade, including agricultural trade, between the two countries.

AFBF Senior Economist John Skorburg outlined a brief economic history of Cuba: Beginning with the 1960's revolution and ending with the 1990's collapse of Russia, the Soviet Union maintained the Cuban economy by trading sugar for oil. The Soviet Union paid "higher than market prices" for sugar and Cuba paid "lower than market prices" for Russian petroleum products. This arrangement allowed Castro to provide both higher education and total medical care at no cost to all citizens, as well as subsidized food and housing. After the Soviet Union collapsed, the Cuban economy quickly followed and still has not recovered.

Allowing American tourism and expanding agricultural trade would help revive the Cuban economy and flow more U.S. dollars into the country giving Cuba greater purchasing power. Farm Bureau has called for reform of U.S. policy toward Cuba, asserting the best way to achieve that is through trade. The organization has pressed for legislation to end the current restriction on financing of U.S. food and agricultural exports to the island nation. Cuba does not have credit with the United States, meaning it must pay with cash only. With the country's poor economic situation, it has trouble coming up with cash needed for its purchases.

Cuba imports around $4 billion in goods per year from countries other than the United States. Of the $4 billion, 20 to 25 percent of the imports are agricultural commodities.

Since the 1961 embargo, the United States has lost 75 to 80 percent of the Cuban market. Under a law Congress passed in 2000, sales of food and medicine to Cuba are now allowed. Commodities such as wheat, corn, rice, soybeans, chicken and lard are currently traded.

Analysts estimate that trade with Cuba could reach $1.5 billion by 2005.

According to historical data from the United Nations Foreign Agricultural Organization, Cuba is a solid market for total imports of:

• Meat products ($50 to 60 million per year)

• Dairy, powdered milk and eggs (Up to $100 million)

• Cereals, including corn, wheat, barley and rice (More than $300 million)

• Fruits and vegetables (Up to $75 million)

• Other animal feed (More than $60 million)

• Soybeans/meals/oils (More than $100 million)

• Fish and fish products ($25 million)

McClure said Ohio could provide much needed cereal grains, such as corn and red winter wheat and wood products.

"The sky's the limit with trade and could easily get into the billions pretty quickly," he said. Cuba also would be a market for fertilizer, crop protection products and agricultural machinery.

Currently, Cuba produces sugar, tobacco, citrus, coffee, rice, potatoes, beans and livestock, and the trade mission delegation learned that the country is looking at restructuring its agricultural production to concentrate on commodities it can produce cost effectively.

American Farm Bureau has continually made the point that food should not be used as a weapon, and testified before a Senate panel last May during a hearing on U.S. trade policy with Cuba.

Farm Bureau believes, according to testimony, that "maintaining our current trade with Cuba and taking steps to lift the remaining restrictions is needed in order to improve our bilateral relationship with Cuba and to foster democratic reform."

Farm Bureau maintains that having more access to the Cuban market would benefit U.S. farmers and restoring trade between the two countries would also help the Cuban people increase their standard of living, according to testimony.

Also, 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.

Regarding tourism, according to McClure, agriculture would benefit because Cuba would need our high value products, such as steaks and finer cuts of meat, to supply its restaurants.

AFBF Director of Congressional Relations (CHECK TITLE) Chris Garza said AFBF will work again this year to try to make trading of American products with Cuba easier. The two main areas that are being pursued are lifting the travel restrictions on Americans and establishing a line of credit Cuba may use to purchase U.S. goods.

Garza said other countries that trade with the United States have the option of credit, "And we would like Cuba to have the same opportunity."

With the current travel restrictions, anyone trying to sell perishable commodities to Cuba faces a lengthy wait to obtain a license from the U.S. State Department that grants travel permission.

AFBF has begun conversations with members of the House and Senate to put legislation forward to discuss trade with Cuba, Garza said. "We will pursue legislation to deal with these issues."

Thirteen OFBF members and several staff and board members are participating in a study tour to Cuba, March14 to 21. The tour is designed to help farmers learn more about the dynamics of international trade and the implications of a renewed United States – Cuba relationship.

Tour participants will visit various Cuban enterprises including farms, port facilities, cooperatives, processing facilities and others. Meetings with Cuban government officials, farmers and businesspersons also will take place.

"This is an exciting opportunity to go down to Cuba and get a good idea about Cuban culture and what Cuba would be like as a trading partner, "said OFBF Vice President of Agricultural Ecology Constance Jackson. "Participants will also see what the market might be for the kinds of products Ohio produces."

Jackson said tour participants will be reminded that Cuba is also an agricultural producer, and possibly a competitor for some products.

"The trip is an opportunity to explore our potential for trade," she said.

Jay Fledderjohann, his brother and nephew farm more than 700 acres and milk 70 Brown Swiss dairy cows on their Auglaize County farm. He is participating in the upcoming Cuba tour and said he hopes to learn if there is a market for Brown Swiss in Cuba. Fledderjohann said it is his understanding that at one time, Cubans raised this breed because its heat tolerant. "They are perfect to have just one or two around – they are very docile," he said. "If sanctions were lifted, could the cattle be brought in again?"

He also is a cattle judge who has evaluated cattle in 14 countries and works with breed associations to promote American genetics internationally. He said frozen embryos are sent to other countries to improve their cattle genetics. Fledderjohann also wants to learn if Cuba might be a new market for this.

A wrap-up of the study trip will be included in the April 14 Buckeye Farm News.

Cutline: Dairy farmer Jay Fledderjohann will be traveling with an Ohio group on a tour of Cuba. He is interested in learning more about the possibility of Brown Swiss dairy cattle being raised there.