U.S. wheat farmers see trade opportunities with Cuba

The National Association of Wheat Growers and U.S. Wheat Associates have thrown their support behind President Obama’s Dec. 17 announcement that the U.S. will begin discussions to renew diplomatic relations with Cuba.

Closer diplomatic relations will make it easier for Cuba to buy U.S. agricultural products, including wheat, the groups said in a Dec. 18 press release.

Cuba, which does not grow wheat commercially, is the largest wheat market in the Caribbean, purchasing almost all of its wheat from the European Union and Canada, the groups said.

Cuba could import at least 500,000 metric tons of wheat from the U.S. each year, but the island country has not purchased U.S. wheat since 2011, the groups said. Under the current embargo, the U.S. can export agricultural products to Cuba through the use of third-party banking institutions, which makes facilitating trade burdensome and often more expensive.

“U.S. wheat farmers are excited about the prospect of exporting more wheat to Cuba,” NAWG president Paul Penner said. “The National Association of Wheat Growers has long supported strengthened trade relations with Cuba and see this as a historic step in that direction.”

Alan Tracy, president of U.S. Wheat Associates, also supported the President’s decision.

“The U.S. wheat industry applauds these actions, which take concrete steps away from a policy approach towards Cuba that has accomplished little,” Tracy said. “If Cuba resumes purchases of U.S. wheat, we believe our market share there could grow from its current level of zero to around 80-90 percent, as it is in other Caribbean nations.”

USW is the industry’s market development organization, working in more than 100 countries. Its mission is to “develop, maintain, and expand international markets to enhance the profitability of U.S. wheat producers.”

The activities of USW are made possible by producer check-off dollars managed by 19 state wheat commissions and through cost-share funding provided by the U.S. Department of Agriculture’s Foreign Agricultural Service. For more information, visit online at www.uswheat.org.