A leading U.S. farm cooperative said Tuesday it will sell another $8 million in corn and soy to Cuba, while Iowa officials said they will try to increase sales of their state's agricultural goods to the communist island.

The Trade Sanctions Reform Act passed by the U.S. Congress in 2000 allowed American farm producers to sell their goods directly to Cuba on a cash basis for the first time in more than 40 years.

"This is just the beginning of what we hope will be a long-term relationship and a beginning to the end of the restrictions on trade with Cuba," said Iowa state Sen. Matt McCoy, a Democrat.

On Tuesday, Chris Aberle, director of domestic sales for the Iowa-based cooperative FC Stone, and Cuban food important officials signed a contract for FC Stone to sell $8 million of corn and soy to the Caribbean island. The deal brings to $33 million the value of food products the cooperative has sold Cuba since late 2001.

"We strongly support lowering the trade restrictions both ways," Aberle said.

Pedro Alvarez, head of Cuba's food import concern Alimport, predicted that by Dec. 31 the island will have bought or made commitments to buy as much as $500 million in American farm products -- including transportation costs -- over two years.

"This shows a real commitment on the part of Iowa to continue doing business with Cuba," he said.

Iowa state officials signed a memorandum of understanding with Alvarez expressing their commitment to increase sales of agricultural products to Cuba.

They also said they would press congressmen to eliminate trade sanctions on Cuba and open up the market to American -- especially Iowan -- business.

"We look forward to trading more with Cuba," said Iowa state Sen. Nancy Boettger, a Republican. "As an Iowan, and as a farmer myself, we see food production as humanitarian."

Cuba first used the law in late 2001 to replenish its food reserves after Hurricane Michelle caused wide damage across the country.

Because the law prohibits U.S. financing for the sales, the Cuban funds generally are shipped through European banks.

Those roundabout funding transactions have cost Cuba at least $10 million because of bank fees and fluctuating foreign exchange rates, Alvarez said.