US Rice Farmers Target $477 Million Cuba Market as Long-Grain Acreage Drops 20%
Updated
Updated · Financial Times · Jun 2
US Rice Farmers Target $477 Million Cuba Market as Long-Grain Acreage Drops 20%
2 articles · Updated · Financial Times · Jun 2
US rice growers are pressing for wider access to Cuba, arguing the island could absorb badly needed sales as long-grain plantings are set to fall nearly a fifth to 1.65 million acres, the lowest since 1983.
Asian subsidies and cheap exports from India, Thailand, Vietnam and China have squeezed US producers, while the Iran war has driven up fertilizer and fuel costs; USDA expects US long-grain rice exports to hit a more than 25-year low.
Cuba is close and structurally short of food, but financing remains the main barrier: US farm exports to the island still rose more than 120% since 2016 to $477 million last year, even under embargo rules.
Arkansas and Louisiana farmers say they could move rice within weeks and potentially supply much of Cuba's needs, though Havana's hard-currency crunch has worsened as tourism slumps and fuel shortages ground flights.
The push ties farm distress to a broader geopolitical opening, with producers hoping Trump's pressure campaign on Havana eventually yields looser trade and, later, investment opportunities.
With Cuba lacking hard currency, what creative financial solutions could make a US rice deal a reality?
If American rice floods the island, who will truly benefit: the Cuban people or the state?
U.S. Rice Acreage Plunges to 50-Year Low in 2026: Crisis Drivers, Global Competition, and the Battle for Cuba’s Market
Overview
The U.S. rice sector is in crisis as planted acreage for 2026 has sharply declined, leading to a major restructuring of production. Arkansas, the top rice-producing state, is seeing its smallest crop in nearly 50 years, with projected acres far below historical levels. This dramatic drop is driven by severe drought conditions, which have increased irrigation costs, and by economic pressures that make rice farming less profitable. Intense international competition further challenges U.S. producers, forcing many to reconsider planting decisions and signaling a period of significant adjustment for the industry.