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NEWS Farm Service Agency Public Affairs Staff 1400 Independence Ave SW Stop 0506, Room 3624-South Washington, D.C. 20250-0506
Release No. 1482.07
Stevin Westcott (202) 720-4178
WASHINGTON, July 19, 2007 - The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced loan rates for 2007-crop sugar as required by the 2002 Farm Bill.
The 2007-crop national average loan rate is 18 cents per pound for raw cane sugar and 22.90 cents per pound for refined beet sugar, unchanged from last year. These national loan rates are adjusted by region to reflect freight differentials.
USDA's Sugar Loan Program provides nonrecourse loans to processors of domestically grown sugar cane and sugar beets. Price support loans are nonrecourse because the commodity is pledged as loan collateral, and processors have the option of delivering the pledged collateral to the CCC as full payment for the loan at maturity. The Farm Service Agency (FSA) administers nonrecourse loans for 2002 through 2007 crops on behalf of the CCC. Sugar and in-process sugar loans are available October 1 each fiscal year and mature at the earlier of: (1) 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 (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 2007-crop (Fiscal Year [FY] 2008) loan rates are:
Region | Cents per pound of Refined Beet Sugar |
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Michigan and Ohio | 24.17 |
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Minnesota and the eastern half of North Dakota | 22.89 |
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Northeastern quarter of Colorado, Nebraska and the southeastern quarter of Wyoming | 22.95 |
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Montana, northwestern quarter of Wyoming and the western half of North Dakota | 23.00 |
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Idaho, Oregon and Washington | 22.03 |
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California | 23.62 |
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Loan Rates for Raw Cane Sugar
The 2007-crop (FY 2008) raw cane sugar loan rates are:
State | Cents Per Pound of Cane Sugar, Raw Value |
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Florida | 18.07 |
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Hawaii | 16.64* |
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Louisiana | 18.27 |
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Texas | 17.27 |
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*18.00 cents per pound if stored on the mainland.
CCC requires sugar beet and sugarcane processors who receive CCC loans in FY 2008 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 their growers at least the following payment levels for average quality sugarcane. A grower's payment level is set according to the quality adjustment method in the grower/processor contract.
State | Minimum Payment |
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Florida | $27.98 per net ton |
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Hawaii | $25.03 per net ton |
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Louisiana | $24.90 per gross ton |
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Texas | $22.62 per gross ton |
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For more information, contact your local USDA Service Center or Barbara Fecso at (202) 720-4146, barbara.fecso@wdc.usda.gov. More information about the Sugar Loan Program can be found in the program fact sheet posted online at: http://www.fsa.usda.gov/Internet/FSA_File/sugarloan03.pdf.
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NOTE: Farm Service Agency (FSA) news releases are accessible through FSA's home page: http://www.fsa.usda.gov.
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