USDA Announces No Actions Under Feedstock Flexibility Program
The Commodity Credit Corporation does not expect to purchase and sell sugar under the Feedstock Flexibility Program for crop year 2021, which runs from October 1st, 2021, to September 30th, 2022.
The CCC is required by law to quarterly announce estimates of sugar to be purchased and sold under the Feedstock Flexibility Program based on crop and consumption forecasts. Federal law allows sugar processors to obtain loans from the Department of Agriculture with maturities of up to nine months when the sugarcane or sugar beet harvests begin. On loan maturity, the sugar processor may repay the loan in full or forfeit the sugar to USDA to satisfy the loan.
Under the Feedstock Flexibility Program, if USDA is faced with the likelihood of loan forfeitures, it is required to purchase surplus sugar and sell it to bioenergy producers to reduce the surplus in the food use market and support sugar prices.
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