Rep. Adrian Smith, R-Neb., on Thursday voted against the House Agriculture Committee passed H.R. 4645, the Travel Restriction Reform and Export Enhancement Act.  This bill, Smith said, would lift the U.S. ban on travel to Cuba while also easing financing with the country.  

“Today’s committee action was more about travel and less about trade,” Smith said. ”My record in promoting Nebraska ag products to international markets speaks for itself.  I am disappointed in both the process and the substance of the committee’s actions today.”

Many farmers in Smith’s Third Congressional District have benefit from Nebraska’s trade links to Cuba. Gov. Dave Hieneman has made a number of visits to Cuba to promote better trade and relationships over the past decade.

Smith said he  troubled to include politically divisive language in a bill, then disallow any actions which would remove those provisions. 

“Clearly, the intentions of this bill have nothing to do with agriculture,” he said. 

Smith said that instead of focusing on legislation which will have no immediate benefit for Nebraska ag producers, “I hope Congress will act quickly to pass pending trade agreements with South Korea, Panama, and Colombia – trade agreements which will have an impact on our agriculture exporters and which will strengthen our allies in Latin America and Asia.” 

 “I remain committed to exploring every opportunity for Nebraska’s producers to tap into the world’s economic opportunities,” Smith said. 

John Hansen, president of the Nebraska Farmers Union, said he doesn’t buy Smith’s “couched excuses for not supporting this bill.”

“ It has to do with Florida politics, rather than forwarding Nebraska’s ag trade interests,” Hansen said about Smith’s vote.  ”Cuba cannot buy anything from anybody if it does not have any money glowing through its economy.  HR4645 has everything, not nothing to do with agriculture.  Nebraska has a lot of what Cuba wants to buy, if it has any money to spend.”

But, according to the American Farm Bureau Federation, the bill will help “increase agriculture exports to that island nation and help make U.S. agricultural goods the products of choice in the Cuban marketplace.”

“This vote today takes us one step closer to placing American-grown food on the tables of the Cuban people,” said AFBF President Bob Stallman. “We are hopeful the House will expedite consideration of this bill so we can take advantage of our competitive position in the Cuban market.”

Earlier this week, Stallman said he expressed  ”AFBF’s strong support for the measure, H.R. 4645, the Travel Restriction Reform and Export Enhancement Act, sponsored by House Agriculture Committee Chairman Collin Peterson (D-Minn.) and Rep. Jerry Moran (R-Kan.).

He said the bill eliminates many restrictions on exports of U.S. agricultural commodities to Cuba, as well as modifies other U.S. policies that hinder U.S. exports to Cuba.

 According to Stallman, the bill clarifies the definition of “cash payment in advance” and eliminates the need for Cuba to go through a third-country bank to pay for a U.S. product. Cuba would be allowed to directly wire payments to U.S. banks. The legislation also removes all travel restrictions to Cuba. 

 “Lifting all travel restrictions will have a direct impact on U.S. agricultural sales,” Stallman said. “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.”

 Stallman said U.S. agricultural exports to Cuba have increased and declined over the years, but have averaged roughly $320 million per year since 2000.  

 “The major reason for the fluctuations is that the U.S. is not viewed by Cuba as a reliable supplier because of sales restrictions and the arbitrary actions of the U.S. government to further limit those sales,” Stallman said. “With timely congressional action, we expect this to soon change for the better. “

Joining the Farmers Union’s and Farm Bureau’s support of the bill was the National Corn Growers Association.

The bipartisan bill passed the Agriculture Committee today by a vote of 25-20.

“NCGA appreciates the work of the House Agriculture Committee today on the passage of this important piece of legislation,” NCGA President Darrin Ihnen said.  “Increasing one-way trade with Cuba and lifting the travel ban will provide additional markets for corn products and co-products, which will in turn help the American farmer.  We are pleased to see the Committee adopt this important piece of legislation with a favorable recommendation and we look forward to working with all members of the House of Representatives to ensure passage on the floor.”
During the 2008-2009 market years, Ihnen said Cuba was the United States’ 10th largest export market for corn. He said the bill will allow American farmers to preserve their competitiveness in this growing market through the elimination of the “cash in advance” and “third party banking” provisions. 

 Ihnen said if the travel ban is lifted, it will allow for exports of value-added corn products such as beef and dried distillers grains to increase significantly.

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