The sale of machinery, fertilizer and mechanical appliances was previously strictly controlled by the state. From now on, private farmers will be able to buy equipment with the freely convertible currency they receive from selling agricultural produce to the state at fixed prices.
The move may save communist Cuba hundreds of millions of U.S. dollars which are usually spent on food imports. In 2007, Cuba purchased food imports worth $2 billion.
The new Cuban leader also said agriculture was a priority for the country's economic development.
There are more than 250,000 farms and 1,100 private cooperatives in Cuba. They farm a third of the country's agricultural land.
Raul Castro became president of Cuba after Fidel Castro announced on February 19 that he would step down as Cuba's president due to health problems. Castro, 81, remains the head of the Communist Party.
Shortly after his election, Raul Castro said he was willing to introduce moderate economic reforms in Cuba, but insisted that he would not deviate from the path of socialism. On Friday he vowed to ease restrictions on the sale of electronic equipment, including DVDs, computers, TVs and cookers.
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