Dive Brief:
- The historic decision to normalize relations between the United States and Cuba could bring an enormous opportunity to agricultural operations in both nations.
- Ag and food exports to Cuba were already exempt from U.S. bans on trade with the island nation, but regulations requiring prepayment and other onerous steps made such deals rare. Those regulations will now be eliminated.
- Cuban land is perfect for growing crops such as sugar, tobacco, and a wide variety of fruit. Exports of all those commodities are likely to surge, bringing much-needed cash to Cuba.
Dive Insight:
There are still things about the new Cuba-U.S. relationship that are unclear. Will Cuba be allowed to sell sugar here, for example? That seems unlikely given that the American sugar market is one of the most-protected markets on earth. Will American grower-shippers be allowed to buy farms on Cuba again? That seems unlikely given that American corporations once operated a large chunk of the arable land on the island and wielded considerable power in the country, a condition that helped lead to the Communist revolution and drove Castro to nationalize agriculture operations once he took power.
Still, there are reasons to hope that the new era will be marked by a healthy, two-way flow of goods between the U.S. and its neighbor.