Results of September Feedstock Flexibility Program Announced
The results of the September 18th Feedstock Flexibility Program offer have been announced by USDA's Commodity Credit Corporation. CCC purchased 136,026 short tons of refined beet sugar for approximately 65.9-million dollars. That sugar was immediately re-sold to bioenergy producers for approximately 12.6-million - resulting in a net expenditure to CCC of 53.3-million dollars.
The Feedstock Flexibility Program was established in the 2008 Farm Bill. It directs the Secretary of Agriculture to purchase sugar for bioenergy production as a means to avoid forfeiture of sugar pledged as collateral by processors who borrow from the Commodity Credit Corporation. The sugar purchased by CCC requires sugar loan repayments - preventing forfeitures of loan collateral. To comply with the sequestration order that is currently in place - the amount of sugar purchased from acceptable offers for the program was reduced by 5.1-percent below the amount that was offered.
© 2013 Rural Radio Network. All rights reserved. Republishing, rebroadcasting, rewriting, redistributing prohibited. Copyright Information