USDA asking White House to approve feedstock flexibility program

April 9, 2013 |

In Washington, the USDA is asking the White House to approve the first ever use of the feedstock flexibility program that allows the USDA to sell sugar at a loss to ethanol makers. The USDA is set to buy up to 400,000 tons of sugar to avoid forfeiture under the commodity insurance program at an estimated total value of $864 million in loans. The commodity insurance price was set at 20.94 cents per pound but futures prices have fallen below that level, triggering some possible forfeitures in July and the rest in September.

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Category: Policy

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