April 4, 2002 

The Honorable Ann M. Veneman
Secretary
United States Department of Agriculture
1400 Independence Avenue, SW
Room 200-A Administration Building
Washington, DC 20250

Dear Secretary Veneman:

We are aware of the administration’s position on various aspects of the farm bill and respectfully request reconsideration of the Cuba financing provisions.

United States law currently prohibits our agricultural exporters wishing to sell food and agricultural commodities to Cuba from using U.S. banks or financial institutions to execute the sale, other than to confirm or advise letters of credit that are issued by third-country financial institutions. This prohibition increases the cost of the overall export transaction by adding additional banking fees. It also increases the complexity of the export sale thereby making it more difficult to compete against foreign suppliers. Additionally it takes business away from the U.S. economy and hands it over to international institutions and disadvantages smaller exporters who may not have international banking relationships.

These third-country financing restrictions placed on agricultural export sales prevent U.S. agricultural exporters from developing standard commercial relations with Cuban buyers. For all of these reasons, we urge the administration’s support to repeal this provision of U.S. law consistent with Section 335 of S. 1731 in the Agriculture, Conservation, and Rural Enhancement Act of 2001.

Sincerely,

Agricultural Retailers Association
American Farm Bureau Federation
American Meat Institute
American Soybean Association
Archer Daniels Midland Company
Cargill Incorporated
Farmland Industries, Inc.
Grocery Manufacturers of America
Louis Dreyfus Corporation
National Association of Wheat Growers
National Barley Growers Association
National Chicken Council
National Corn Growers Association
National Milk Producers Federation
National Oilseed Processors Association
National Pork Producers Council
National Renderers Association
National Sunflower Association
North American Export Grain Association
North American Millers’ Association
Rice Millers’ Association
U.S. Canola Association
U.S. Dairy Export Council
U.S. Dry Pea & Lentil Council
U.S. Rice Producers Association
U.S. Rice Producers’ Group
U.S. Wheat Associates
Wheat Export Trade Education Committee