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Ag Committee Passes Cuba Bill

A bill with 62 co-sponsors had a tough time getting out of the House Agriculture Committee on Wednesday. After a handful amendments were ruled out of order and a motion to report the Travel Restriction Reform and Export Enhancement Act out of committee without a recommendation, committee members finally voted 25 to 20 to report the bill with a favorable recommendation. The measure provides for expanded agricultural trade with Cuba and allows Americans to travel more freely to the island. Calling it the right policy at the right time, Committee Chair Collin Peterson, D-Minn., said the committee took a courageous vote to end the short-sighted and failed policy that limits American agriculture's access to the Cuban market.

Just hours prior to the Committee vote the U.S. Chamber of Commerce called the bill an important first step toward a policy more likely to bring change to Cuba and commercial benefits to the United States. In a letter to all Members of the U.S. Congress the U.S. Chamber said it would consider giving a key vote designation to the legislation should it reach the House floor.

But the motion to report without a recommendation from Bob Goodlatte, R-Va., would have killed the bill on the House floor according to Chairman Peterson. A 24 to 21 vote against tabling that motion led Peterson to call for a short recess. When he returned - the vote on Goodlatte's motion failed 42 to 3.

The National Farmers Union was pleased the Ag Committee passed the Travel Restriction Reform and Export Enhancement Act with no amendments. The measure contains a provision to eliminate the requirement that payments to U.S. ag sellers must go through banks in other countries, allowing direct financial transactions for ag sales to Cuba. NFU President Roger Johnson says it's vital to take advantage of all opportunities that will open markets for producers to sell their products in the current economic environment and says this legislation does just that.

Just under 50 years ago, 60% of Cuba's food imports came from the U.S. Lifting the ban on agricultural goods, the International Trade Commission predicts, would increase U.S. exports to Cuba to between $924 million and $1.2 billion. A recent ITC report shows about $290 million in agricultural cash sales to Cuba.

Also pleased by the passage of the bill out of committee is the American Farm Bureau Federation

"Lifting all travel restrictions will have a direct impact on U.S. agricultural sales," American Farm Bureau Federation Stallman wrote. "Increased travel to Cuba will boost food demand in the country, and coupled with other reforms, the U.S. industry will meet increased food needs.  Increased travel will also bring much needed funds to purchase U.S. commodities, given that cash will remain the only means of payment."