The Commodity Credit Corporation, under USDA, is setting the stage for sugar producers. These new loan rates aim to help sugar processors store sugar post-harvest when prices dip, selling later at higher prices.
The rates, increased by the 2018 Farm Bill, are 19.75 cents per pound for raw cane sugar and 25.38 cents for refined beet sugar. These rates change based on regions due to varying marketing costs.
Starting from Oct. 1, 2023, these loans have a nine-month maturity. Producers can repay loans by handing over the sugar kept as collateral. Refined beet sugar loan rates differ across regions, with California's rate being 26.79 cents/pound and Florida's raw cane sugar rate at 18.60 cents/pound.
It's essential that processors meet the specified minimum grower payments to be eligible for these loans.
The USDA continually strives to positively impact Americans. Under the Biden-Harris administration, they're pushing for resilient food systems, fairer markets, and greater focus on climate-smart practices.
Remember, USDA stands as an equal opportunity provider and employer.
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Categories: Minnesota, Crops, Sugar Beets, Government & Policy, Harvesting