NEWS

Farm Service Agency

Public Affairs Staff

1400 Independence Ave SW

Stop 0506, Room 3624-South

Washington, D.C. 20250-0506

WASHINGTON, Sept. 28, 2006 - The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced the final Fiscal Year (FY) 2006 state allotments and company allocations. CCC adjusted the allotments and allocations to reflect current production forecasts and also the 246,000 short ton, raw value (STRV) reassignment to imports announced on July 27, 2006. CCC also announced the FY 2007 state allotments and cane and beet sugar company allocations of the 8,750,000 STRV Overall Allotment Quantity (OAQ) announced on July 27, 2006.

CCC stated in its July 27, 2006, news release that the forecast domestic supply shortfall of 246,000 STRV would be reassigned to imports in accordance with statute. As a result, CCC lowered state allotments and company allocations to accommodate each company's and state's ability to market its allocation and allotment.

CCC also announced the distribution of the FY 2007 beet sugar allotment of 4,755,625 STRV (54.35 percent of the OAQ) among the sugar beet processors. In addition, CCC announced the distribution of only 3,619,375 STRV of the cane sector allotment to cane states and sugarcane processors. This is 375,000 STRV less than the 3,994,375 STRV cane sugar allotment (45.65 percent of the OAQ) and has been reassigned to imports in accordance with the July 27, 2006, determination that the cane sector would be unable to fill 375,000 STRV of its allotment.

In FY 2004, CCC declared that Puerto Rican processors permanently terminated operations because no sugar had been processed for two complete years. Since Puerto Rico is entitled to an allocation by law, the allocation of 6,356 STRV is reassigned to the mainland cane-producing states. Hawaii received none of the Puerto Rican reassignment because it is not expected to use all of its current cane sugar allotment.

This announcement also recognizes another structural change in the sugarcane processing sector. Alma Plantation L.L.C., which purchased the Cinclare sugar operations of Harry Laws & Co., Inc. in FY 2005, announced that it would not open its Cinclare factory for the 2006 crop season. As a result, CCC transferred a portion of Alma's allocation to Cora Texas Manufacturing Company, L.L.C. based on grower petitions, in accordance with statute.

CCC determined that proportionate shares are not necessary in Louisiana in FY 2006 because the cane sugar sector is not expected to fill its allotment.

For more information, contact Barbara Fecso at (202) 720-4146, barbara.fecso@usda.gov.

NOTE: Farm Service Agency (FSA) news releases and media advisories are available on the Web at FSA's home page: http://www.fsa.usda.gov.