The severe food crisis currently gripping Cuba has pushed the government to unveil one of the most extensive agricultural reforms in decades. This announcement, made on Thursday, includes a significant overhaul of agricultural regulations, expanded rights for land use, price decentralization, and greater commercial freedoms for cooperatives and producers.
Among the 176 economic and social transformations presented by Prime Minister Manuel Marrero Cruz to the National Assembly of the People's Power, the initiatives under "Axis 7" focus on easing land management, expanding producer powers, and reducing some longstanding agricultural controls, as highlighted by the official newspaper Granma.
The new regulations uphold the principle that land belongs to all the people but significantly expand usufruct opportunities.
Individuals, state-owned enterprises, private companies, joint ventures, and other management forms can now request land for indefinite periods for agricultural, forestry, tobacco, and eco and agrotourism projects.
This reform also removes a traditional system requirement: the obligation for the usufructuary to work the land directly and consistently.
Furthermore, the state-run land management company is empowered to allocate land through contracts. It authorizes the assignment of land in usufruct to Agricultural Production Cooperatives, pending approval from their general assemblies.
Urgency of Reforms Highlighted by Leadership
The measures come shortly after President Miguel Díaz-Canel publicly acknowledged the severity of the country's food situation during the Extraordinary Plenum of the Central Committee of the Communist Party held on Wednesday.
During the meeting, the leader stated, "There is no sovereignty with an empty plate," elevating food security to a matter of national security.
He also announced that unproductive lands should either be cultivated or handed over to those willing to work them.
Empowering Cooperatives and Market Dynamics
The transformation also impacts the management model of cooperatives. They will be able to import and trade fuel, engage in direct foreign trade operations, manage external financing, open foreign bank accounts, and access new avenues for acquiring technology and supplies.
Another significant change is the relaxation of agricultural marketing and pricing. The government aims to decentralize price setting, allowing producers and buyers to negotiate prices. This adjustment follows Díaz-Canel's recent admission that price caps failed to curb inflation and often led to market shortages and distortions.
The new policies also recognize a broader role for market mechanisms. All economic actors can trade agricultural inputs and equipment in both pesos and foreign currencies, with the creation of specialized markets where national and international individuals and legal entities can participate.
The reform also includes tax incentives for those importing and trading agricultural inputs and the establishment of banking mechanisms to facilitate foreign currency transactions, including electronic payments, transfers, and magnetic card operations.
These measures complement the Agricultural and Forestry Land Law Project disclosed this month by the National Assembly, which already proposed expanding some usufruct rights and easing certain agricultural management aspects, though it maintains the principle of state ownership of land and strict restrictions on its transfer and commercialization.
The urgency of these reforms is directly linked to the deterioration of national production. According to official figures, Cuba produces only a fraction of the food it needs, importing 70% to 80% of its consumption, with significant portions of the population struggling to access adequate nutrition.
In this context, expanding rights for producers and cooperatives implicitly acknowledges that the current agricultural model has failed to ensure the country's supply.
The challenge for the authorities now is to translate these new powers into tangible results in Cuba's fields, where decades of control, lack of inputs, and insufficient incentives have contributed to the production collapse that now forces the regime to rethink sector rules.
Frequently Asked Questions About Cuba's Agricultural Reforms
What are the main changes in Cuba's agricultural policies?
The reforms include increased rights for land use, decentralization of pricing, and expanded commercial freedoms for cooperatives and producers. They also allow for land to be requested indefinitely for various agricultural purposes.
How will these reforms affect cooperatives in Cuba?
Cooperatives will have more autonomy, including the ability to import and trade fuel, engage in foreign trade, manage external financing, and access new technologies and supplies.
Why is there an urgency for these agricultural reforms in Cuba?
Cuba faces a severe food crisis, producing only a small portion of its needed food and relying heavily on imports. The reforms aim to address the inefficiencies and shortages caused by the current agricultural model.