Source: USDA, 9/27/19

The U.S. Department of Agriculture (USDA) Commodity Credit Corporation (CCC) today announced crop year 2019 rates for marketing assistance loan rates for sugar Additionally, USDA announced provisions of the fiscal year 2020 domestic sugar program and that the CCC is not expected to purchase and sell sugar under the Feedstock Flexibility Program for crop year 2019.

USDA offers marketing assistance loans to processors of sugar beets and domestically grown sugarcane to provide interim financing to producers so that commodities can be stored after harvest when market prices are typically low and be sold later when price conditions are more favorable. The 2018 Farm Bill increased the national average loan rate to 19.75 cents per pound for raw cane sugar and 25.38 cents per pound for refined beet sugar. These rates are adjusted regionally to reflect marketing cost differentials.

The loans mature at the end of the nine-month period beginning the first day of the first month after the month in which the loan is made, or the end of the fiscal year in which the loan is made, whichever is earlier. Producers have the option to deliver the pledged sugar collateral to CCC as full payment for the loan at maturity.

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