Agribusiness Update for Wednesday 12/24/14

With Congress blocking USDA on spending funds to create a second beef checkoff, Agriculture secretary Tom Vilsack is dropping his proposal. Vilsack said he's happy at least that people within the beef industry could find an area of agreement. USDA will not pursue creating another checkoff under the 1996 commodity promotion law. In regards to beef promotion groups, Vilsack said "they agreed they didn't want a second checkoff. That's the first time in three years they have agreed on anything." He added now that Congress has blocked the one avenue he could pursue; changing the checkoff is up to the Beef Industry.

A trade analyst says the United Stated needs to stick to cash trades with Cuba. The executive director of the U.S.-Cuba Trade and Economic Council said exporters would be unwise to grant credit to the Cubans, if that becomes legally possible because they have a history of not paying their bills to other countries. Last week, President Obama announced he will start normal relations with Cuba, which could open up trade to be more efficient between Cuba and the U.S. Some agriculture groups estimate trade could open for ag products and food, bringing more value to U.S. agriculture.

That's today's Agribusiness Update from the Ag Information Network of the West.