USDA Releases Sugar Crop Loan Rates
isc | Oct 17, 2009
The U.S. Department of Agriculture’s Commodity Credit Corporation has announced loan rates for 2009 crop sugar as required by the 2008 Farm Bill.
The 2009 crop national average loan rates are 18.25 cents per pound for raw cane sugar and 23.45 cents per pound for refined beet sugar. Both rates are increases from last year.
CCC adjusts the national loan rate for use in each region to reflect freight differentials.
The USDA’s Sugar Loan Program provides nonrecourse loans to sugar processors of domestically grown sugarcane and sugar beets. Price support loans are nonrecourse because the commodity is pledged as loan collateral and processors have the option to deliver that collateral to the CCC as full payment for the loan at maturity.
USDA’s Farm Service Agency administers nonrecourse loans on behalf of the CCC.
Sugar and in-process sugar loans are available beginning Oct. 1 each fiscal year. The loans mature at the earlier of either: the end of the nine-month period beginning on 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.
The following are the 2009 crop (fiscal year 2010) raw cane sugar loan rates:
- Florida: 17.92 cents per pound.
- Hawaii: 15.88 cents per pound.
- Louisiana: 18.96 cents per pound.
- Texas: 17.81 cents per pound.
Sugar beet and sugarcane processors receiving CCC loans in fiscal year 2010 must 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. Sugarcane processors must pay at least the following payment levels for average quality sugarcane to their growers:
- Florida: $29.03 per net ton.
- Hawaii: $24.65 per net ton.
- Louisiana: $27.81 per gross ton.
- Texas: $24.54 per gross ton.
