USDA Announces Sugar Loan Rates, Allotment & Marketing Allocations
The U.S. Department of Agriculture’s (USDA) Commodity Credit Corporation (CCC) today announced the marketing assistance loan rates for sugar for crop year 2020 (fiscal year 2021). CCC also announced sugar beet and sugarcane allotments and processor marketing allocations for the fiscal year 2021 domestic sugar program.
USDA offers marketing assistance loans to processors of domestically grown sugar beets and domestically grown sugarcane to provide interim financing to producers so that commodities can be stored after harvest when market prices are typically low and be sold later when price conditions are more favorable. The 2018 Farm Bill increased the national average loan rate to 19.75 cents per pound for raw cane sugar and 25.38 cents per pound for refined beet sugar. These rates are adjusted regionally to reflect marketing cost differentials.