The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) has announced loan rates for 2009-crop sugar as required by the 2008 farm bill.
The 2009-crop national average loan rate is 18.25 cents per pound for raw cane sugar and 23.45 cents per pound for refined beet sugar, increased from last year. These national loan rates are adjusted regionally to reflect marketing cost differentials.
USDA's Sugar Loan Program provides non-recourse loans to processors of sugar beets and domestically grown sugarcane. Price support loans are non-recourse as the commodity is pledged as loan collateral and producers have the option of delivering the pledged collateral to the CCC as full payment for the loan at maturity.
The USDA Farm Service Agency (FSA) administers non-recourse loans for the 2008 through 2012 crops on behalf of the CCC.
Sugar and in-process sugar loans are available beginning Oct. 1 each fiscal year and mature at the earlier of (1) the end of the 9-month period beginning on the first day of the first month after the month in which the loan is made, or (2) the end of the fiscal year in which the loan is made.
Loan Rates for Refined Beet Sugar
The refined beet sugar processing regions and applicable 2009-crop fiscal year (FY) 2010 loan rates in cents per pound of refined beet sugar are:
Michigan and Ohio — 24.94
Minnesota and the eastern half of North Dakota — 23.41
Northeastern quarter of Colorado, Nebraska and the southeastern quarter of Wyoming — 22.58
Montana, northwestern quarter of Wyoming and the western half of North Dakota — 23.40
Idaho, Oregon and Washington — 22.60
California - 24.74
Loan Rates for Raw Cane Sugar
The 2009-crop (FY 2010) raw cane sugar loan rates per state and per cents per pound of cane sugar, raw value are:
Florida — 17.92
Hawaii — 15.88 (18.25 cents per pound if stored on the mainland)
Louisiana — 18.96
Texas — 17.81
Sugar beet and sugarcane processors who receive CCC loans in FY 2010 are required to make minimum grower payments for all sugar beets and sugarcane received from growers. Processors failing to meet the required minimum grower payment will be ineligible for loans. Sugar beet grower minimum payments are the amount specified in the grower/processor contract. Sugarcane processors must pay at least the following payment levels for average quality sugarcane to their growers. A grower's payment level can be adjusted according to the quality adjustment method in the grower/processor contract.
States and minimum payments are:
Florida - $29.03 per net ton
Hawaii - $24.65 per net ton
Louisiana - $27.81 per gross ton
Texas - $24.54 per gross ton
CCC has modified the raw sugar loan schedule of premiums and discounts incurred upon forfeiture to reflect the new loan rate and current commercial raw sugar marketing practices. This schedule has been incorporated into FSA Handbook 10-SU, which is available at http://www.fsa.usda.gov/Internet/FSA_File/10-su.pdf, or in FSA's state and county offices.
For more information, contact your local USDA Service Center or Barbara Fecso at (202) 720-4146, [email protected].