USDA Announces Initial Fiscal Year 2013 Domestic Sugar Program

(USDA) – The U.S. Department of Agriculture’s Commodity Credit Corporation (CCC) today announced the details of the fiscal year (FY) 2013 domestic Sugar Program.  The initial FY 2013 overall sugar marketing allotment (OAQ) is established at9,711,250 short tons, raw value (STRV).  The OAQ is equal to 85 percent of the estimated human consumption for the crop year of 11,425,000 STRV as forecast in the August 2012 World Agricultural Supply and Demand Estimates report (WASDE).  Statute requires that a fixed portion of the OAQ be assigned to the beet sector and the cane sector.  CCC distributed the FY 2013 beet sugar allotment of 5,278,064 STRV (54.35 percent of the OAQ) among the sugar beet processors and the cane sugar allotment of 4,433,186 STRV (45.65 percent of the OAQ) among the sugarcane processors.

CCC determined in 2004 that Puerto Rican processors permanently terminated operations because no sugar had been processed for two complete years.  The Puerto Rico allocation of 6,356 STRV is reassigned to Hawaii and then further reassigned to the mainland sugarcane-producing states, because Hawaii is not expected to use all of its cane sugar allotment.

CCC determined that farm level proportionate shares were not necessary in Louisiana, the only state eligible for proportionate shares, in FY 2013 because the cane sugar sector was not expected to fill its allotment.

Additionally, CCC determined that the Feedstock Flexibility Program (FFP) will not be implemented in FY 2013 based on forecast sugar supplies and prices significantly above the support level. The prospect for forfeitures of sugar loan collateral under CCC price support loans in FY 2013, which triggers FFP, was determined to be unlikely at this time.

USDA will closely monitor stocks, consumption, imports, and all sugar market and program variables on an ongoing basis. Additional adjustments to USDA’s sugar program may be needed later in FY 2013 to ensure an adequate sugar supply for the domestic market, avoid forfeitures, and prevent or correct market disruptions. USDA will continue to administer the sugar program as transparently as possible using the latest available data.

The initial FY 2013 sugar marketing state allotments and processor allocations are listed in the table located below:

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