The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) shared on their latest update that they don't plan to buy or sell sugar under the Feedstock Flexibility Program for the 2022 crop year, spanning from October 1, 2022, to September 30, 2023.
By law, the CCC must release quarterly estimates on sugar transactions. This is based on forecasted crops and consumption patterns. When sugarcane or sugar beet harvests start, sugar processors can secure loans from the USDA. When these loans mature, processors have two options: repay the full amount or hand over the sugar as loan collateral.
The Feedstock Flexibility Program, introduced in 2008 and reapproved in 2018, aims to avoid sugar forfeitures by buying excess sugar and selling it to bioenergy makers. This reduces the food market's surplus and maintains stable sugar prices. A recent USDA report from August 11, 2023, predicts no surplus is expected for the 2022 crop year. Thus, no sugar buying or selling is foreseen under the program for this period.
Ensuring transparency, the USDA will keep a close watch on sugar market trends and figures. Their next update concerning the Feedstock Flexibility Program will be released by January 1, 2024.
The USDA is reshaping America's food system under the administration, focusing on resilient food production, fairer market structures, and climate-smart practices.
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Categories: Nebraska, Government & Policy