October 1, 2013
WASHINGTON, D.C. — The U.S. Department of Agriculture’s Commodity Credit Corporation announced the results of the Sept. 18, Feedstock Flexibility Program offer. CCC purchased 136,026 short tons of refined beet sugar for approximately $65.9 million. CCC then immediately re-sold that sugar to bioenergy producers for approximately $12.6 million, resulting in a net expenditure to CCC of $53.3 million.
Established by Congress in the 2008 Farm Bill, the FFP directs the Secretary of Agriculture to purchase sugar for bioenergy production as a means to avoid the forfeiture of sugar pledged as collateral by processors who borrow from CCC.
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 Feedstock Flexibility Program was reduced by 5.1 percent below the amount that was offered.
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