U.S.-Cuban relations could boost Missouri farm exports

Possible steps toward a U.S. agreement with Cuba could mean big things for Southeast Missouri farmers.

Missouri was the No. 5 rice producing state in the nation in 2013, according to research by the University of Missouri Extension, and should the embargo with Cuba be lifted and trade begin between the two countries, rice exports could surge.

"With the possibility of being able to export agriculture products to Cuba, rice would be the first likely commodity imported," said Dr. Michael Aide, chairman of the Agriculture Department at Southeast Missouri State University. Missouri rice is readily exported all through the Caribbean, and there would be a great market opportunity for Missouri rice in Cuba."

In 2013, approximately 160,000 acres of rice were harvested in Missouri, according to the University of Missouri Extension. Acres planted for rice began to increase in the state in the 1970s, and yields have risen about 60 pounds per acre since then. Rice sales currently exceed $15 million per year, according to extension.missouri.edu.

Major U.S. exports of rice are to Latin America, the Caribbean, Mexico and portions of South America, Aide said.

"If Cuba imported U.S. rice, we would probably see markets rearrange to a point where rice would be more attractive to plant," he said.

Early last week, President Barack Obama and Cuban President Raul Castro spoke via phone about relations between the two countries. It was the first presidential-level call between their nations' leaders in 55 years, The Associated Press reported.

The next day, the two announced the restoration of diplomatic relations between the countries, the first public move of this kind since the embargo was enacted in the early 1960s.

Right now, exports to Cuba are limited by prohibitions requiring it to pay cash for the shipments it receives. Should talk of diplomatic ties continue, U.S. exports such as rice, soybeans, poultry, beef and pork will be popular items to ship.

"They're a huge consumer of rice, so it's a win-win market for all," said Matt McCrate, vice president of the Missouri Soybean Association. "The advantage we'll have is that we're so close and everything out of the Bootheel goes down the river to New Orleans, and New Orleans to Cuba is just a hop, skip and a jump. So we can basically pick up all of that business that we haven't had for the last 50 years."

McCrate said 80 percent of all soybean milled goes into the production of livestock, the majority being chicken, beef and pork.

"I think our supply is more than enough to supply anything that Cuba needs. It would just be an added market for us," he said. "Right now soybean prices, corn prices, rice prices are much lower than what they were a year or two years ago, and opening up that market would help up some of the pricing that we have."

A recent news release from Missouri Gov. Jay Nixon said exports of Missouri agricultural goods are surging -- up 14 percent this year compared to last. Nixon also said that over the past six years, Missouri has closed agreements to sell $10 billion in Missouri goods, with plans to increase that number by the end of his term.

In exchange for our exportation of rice to Cuba, Cubans would be interested in exporting cane sugar into the U.S., Aide said. And although that doesn't directly affect Southeast Missouri, sugar producers in Louisiana would not favor the added competition.

To help expand economic ties, President Obama plans to open an embassy in Havana, Cuba's capitol, and send high-ranking U.S. officials to visit and review Cuba's designation as a state sponsor of terrorism, according to Associated Press reports. The U.S. also is easing restrictions on travel to Cuba, including for family visits, official government business and educational activities. But tourist travel remains banned.

smaue@semissourian.com

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