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Farm Service Agency Public Affairs Staff 1400 Independence Ave SW Stop 0506, Room 3624-South Washington, D.C. 20250-0506 Release No. 1466.06
Stevin Westcott (202) 720-4178
WASHINGTON, June 21, 2006 - The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced loan rates for 2006-crop sugar as required by the 2002 Farm Bill. The 2006-crop national average loan rates are 18 cents per pound for raw cane sugar and 22.90 cents per pound for refined beet sugar. Both rates are unchanged from last year. CCC adjusts national loan rates by region to reflect freight differentials.
USDA's Sugar Loan Program provides nonrecourse loans to 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 CCC as full payment for the loan at maturity. USDA's Farm Service Agency (FSA) administers nonrecourse loans for 2002 through 2007 crops on behalf of CCC. Sugar and in-process sugar loans are available beginning October 1 each fiscal year. The loans mature at the earlier of either: (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.
The following are the refined beet sugar processing regions and applicable 2006-crop (Fiscal Year [FY] 2007) loan rates.
Region Cents Per Pound of Refined Beet Sugar Michigan and Ohio 24.13
Minnesota and the eastern half of North Dakota 22.91
Northeastern quarter of Colorado, Nebraska and the southeastern quarter of Wyoming 22.94
Montana, northwestern quarter of Wyoming and the western half of North Dakota 22.76
Idaho, Oregon and Washington 22.04
California 23.77
Loan Rates for Raw Cane Sugar
The following are the 2006-crop (FY 2007) raw cane sugar loan rates.
State Cents Per Pound of Cane Sugar, Raw Value Florida 17.93 Hawaii 17.00* Louisiana 18.33 Texas 17.93
*18.00 cents per pound if stored on the mainland.
Sugar beet and sugarcane processors receiving CCC loans in FY 2007 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. Grower/processor contracts specify minimum payment amounts to sugar beet growers and how a grower's payment level can be adjusted. Sugarcane processors must pay at least the following payment levels for average quality sugarcane to their growers:
Florida $27.63 per net ton Hawaii $24.36 per net ton Louisiana $24.44 per gross ton Texas $22.60 per gross ton
For more information, contact your local USDA Service Center or Barbara Fecso at (202) 720-4146, barbara.fecso@wdc.usda.gov.
NOTE: Farm Service Agency (FSA) news releases are accessible through FSA's home page: http://www.fsa.usda.gov.
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