New deal with Cuba could be good news for area rice growers

By JONATHON DAWE

Statesman Staff Writer

While it remains unclear as to exactly what renewed relations with Cuba could mean entirely, one positive impact could certainly be felt locally.

Area rice growers could soon see a bump in prices, as their crops could be headed south to Cuba.

As of this past year, Stoddard County boasted approximately 39,000 acres of rice production -- although Butler County is still the number one rice producer in the area -- according to USDA County Executive Director Steve Morrison.

"Any time we can start exporting more crops anywhere, it's certainly good news for local growers," Morrison explained. "I know there's been hope of this happening for a while, now."

The courting of Cuba as a potential export market for around 400,000 tons of U.S. rice was made possible by the Trade Sanctions Reform Export Enhancement Act (TSREEA), in 2000. The law aimed to lift unilateral food and medicine sanctions by eliminating onerous bureaucratic hurdles.

But, the hurdles did remain, despite efforts by former U.S. Rep. Jo Ann Emerson to overcome them. During one trip to Cuba, Emerson passed out bags of rice from Sonny Martin's farm in Dexter, to Cuban officials.

Emerson was part of a delegation that met with former Cuban leader Fidel Castro, who treated the group to a four-and-a-half hour dinner one evening.

University of Missouri extension Office Regional Agronomist A. J. Foster said she doesn't understand the embargo on Cuba.

"An embargo doesn't make sense to me if you don't control the whole market," Foster remarked. "It doesn't keep them from doing business with other countries."

Currently, 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.

Morrison noted that rice is a chief agricultural export to South American countries; but, the possibility exists for other goods like corn to be exported as well.

"If the market opens up entirely, that could be seriously good news for all of our farmers," Morrison remarked. "That's definitely something we hope will happen."

Foster said he believes area farmers could see more than just rice being exported; but the U.S. does have to contend with South American countries like Brazil and its production of corn and soybeans.

Morrison went on to explain that one reason for a potential increase in profit for area rice farmers, is the fact that hauling Missouri rice to Cuba would not cost as much, due to Cuba's close proximity.

"Overall, Missouri saw a boost in rice acreage from 2013 to 2014," Morrison explained. "If everything goes through with Cuba, we could see a slight bump in rice production, locally; but, I think the real bump will be in areas like Pemiscott County, where they're starting to increase their rice acreage."

Until 1962, Cuba was the top export market for U.S. rice. Trade sanctions imposed that year have cost American rice producers an estimated $3 billion. A U.S. International Trade Commission report estimated that U.S. rice exports to Cuba could total nearly $60 million annually. With Missouri being the No. 4 rice producing state in the nation in 2013, area producers could have much to celebrate soon.

Morrison said he believes the timing is right for the most recent talks with Cuba.

"Other commodities are struggling a little bit," he explained. "So, anything we can do to help our farmers is certainly welcome."

"Cuba, over the years, has been known to love U.S. rice," Foster remarked. "It's always good to enter a market where your product is known and loved."