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Dairy groups and National Farmers Union are applauding the advancement of a bill to expand U.S. ag exports and travel to Cuba.

National Milk Producers Federation and the U.S. Dairy Export Council, in a joint press release, said the House Agriculture Committee's approval of the bill last week is a step toward bolstering the ongoing dairy industry recovery.

A recession-driven decline in export sales played a significant role in the crisis.

"The Cuban market holds significant promise for U.S. dairy exporters but has become increasingly difficult to supply within the past few years," said Tom Suber, president of USDEC. "Improving our ability to export to Cuba by doing away with many of the barriers the U.S. government has erected to us is a very important step in the right direction."

The bill would eliminate both the need to go through banks in other countries to conduct agricultural trades and the accompanying fees those banks charge.

It would also require agricultural exports to Cuba to meet the same payment requirements as exports to other countries, meaning payment would be required when the title of the shipment changes hands, not in advance.

According to estimates by economists at Texas A&M University, elimination of U.S. financial constraints on agricultural exports to Cuba and allowing U.S. citizens to travel to Cuba would result in a $50 million a year increase in dairy exports.

"This legislation would help open up additional doors for U.S. dairy products at a time when rebuilding markets for U.S. milk is critical to the well-being of our dairy producer community," Jerry Kozak, president and CEO of NMPF, said in the press release.

The bill would spur greater demand for U.S. agricultural products in general.

National Farmers Union joined 138 other organizations in support of the bill without amendments.

"In the current economic environment, it is vital to take advantage of all opportunities that will open markets for producers to sell their products," NFU President Roger Johnson said in a press release.

About 50 years ago, 60 percent of Cuba's food imports came from the United States. The International Trade Commission predicts lifting the ban on agricultural goods would increase U.S. exports to Cuba to between $924 million and $1.2 billion.

Due to continued restrictions enacted by executive orders rather than Congress, agricultural sales to Cuba have steadily declined. A recent report by the ITC showed about $290 million in agricultural cash sales to Cuba, NFU stated.

By CAROL RYAN DUMAS

Capital Press Online

H.R. 4645: http://thomas.loc.gov/cgi-bin/thomas

U.S. Dairy Export Council: www.usdec.org

National Milk Producers Foundation: www.nmpf.org.

National Farmers Union: www.nfu.org

Source: www.capitalpress.com/dairy

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