In a bid to revitalize its struggling agricultural sector, the Cuban government is contemplating granting land leases to foreign companies and permanent residents. This initiative is part of a broader strategy to boost agricultural output amid the nation's severe economic crisis.
The Ministry of Agriculture revealed this development during a Tuesday press briefing, stating that the proposal is included in the draft Law on Land Ownership, Possession, and Use. According to the news agency EFE, the new legislation aims to encourage an "increase in agricultural production" and acknowledge "all economic actors."
This 60-page draft will be open for discussion until May 1, after which it will be presented to the National Assembly of People's Power for approval in December. Although Cuba has previously granted land leases to foreign entities, these arrangements lacked a clear legal framework.
Mayra Cruz, the legal director of the Ministry of Agriculture, noted that the key change is the explicit recognition of this option within agrarian law. "The current decree law regarding land leases does not explicitly mention foreign legal entities in any form. How has this been addressed so far? Through the Constitution, but there was a legal gap," Cruz explained.
Earlier this year, Cuban state media reported that a Vietnamese company became the first foreign firm to receive land for farming since 1959. The company was granted 308 hectares on a farm in the southern part of Pinar del Río province for rice cultivation.
Cruz emphasized that the new legislation seeks to address a common issue faced by foreign residents interested in leasing land. Until now, they have had to apply through Cuban relatives. "We are aware of many foreigners residing in Cuba who are keen on this opportunity. So far, they've had to rely on their wives, children, or other Cuban relatives to acquire land. This proposal will allow them to obtain land directly in their own names, similar to how they can acquire cars and homes," Cruz elaborated.
This measure comes at a critical juncture for Cuba's economy, which is grappling with a deepening crisis exacerbated by the COVID-19 pandemic, tightened U.S. sanctions, and internal economic policy failures. The island is experiencing acute shortages of food, medicine, fuel, and cash, coupled with rampant inflation, frequent power outages, and an increasing dollarization of the economy.
Frequently Asked Questions About Cuba's Land Lease Policy
What is the purpose of Cuba's new land lease policy?
The new policy aims to boost agricultural production by legally allowing foreign companies and permanent residents to lease land, thus addressing the severe crisis in the agricultural sector.
How does the new law change previous land lease arrangements?
Previously, land leases were granted to foreign entities without a clear legal framework. The new law explicitly recognizes this possibility, filling the existing legal gap.
When will the new land lease law be discussed and potentially approved?
The draft law will be discussed until May 1 and is expected to be presented to the National Assembly for approval in December.