USDA says likely no need for Feedstock Flexibility Program in fiscal year 2017

January 3, 2017 |

In Washington, the USDA’s Commodity Credit Corporation announced that it does not expect to purchase and sell sugar under the Feedstock Flexibility Program in fiscal year 2017

Federal law allows sugar processors to obtain loans from USDA with maturities of up to nine months when the sugarcane or sugar beet harvest begins. Upon loan maturity, the sugar processor may repay the loan in full or forfeit the collateral (sugar) to USDA if prices are too low. 

USDA will closely monitor domestic sugar stocks, consumption, imports and other sugar market variables on an ongoing basis, and will continue to administer the sugar program as transparently as possible. The next quarterly estimate regarding the Feedstock Flexibility Program will occur prior to April 1, 2017. 

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