USDA Announces Fiscal Year 2024 Sugar Loan Rates

The U.S. Department of Agriculture’s (USDA) Commodity Credit Corporation (CCC) today announced sugar loan rates for crop year 2023 (fiscal year 2024).

Marketing Assistance Loan Rates

USDA offers commodity loans to processors of sugar beets and domestically grown sugarcane to provide interim financing to producers so that sugar can be stored after harvest when market prices are typically low and then 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.

Loans are available beginning Oct. 1, 2023, and mature at the end of the nine-month period beginning the first day of the first month after the month in which the loan is made, or the end of the fiscal year in which the loan is made, whichever is earlier. Producers have the option to deliver the pledged sugar collateral to CCC as full payment for the loan at maturity.

Loan Rates for Refined Beet Sugar

The refined beet sugar processing regions and applicable 2023-crop (fiscal year 2024) loan rates in cents per pound of refined beet sugar are:

• Michigan and Ohio – 26.44
• Minnesota and the eastern half of North Dakota – 25.01
• Northeastern quarter of Colorado, Nebraska and the southeastern quarter of Wyoming – 25.55
• Montana, northwestern quarter of Wyoming and the western half of North Dakota – 25.14
• Idaho, Oregon and Washington – 25.66
• California – 26.79

Source: usda.gov

Photo Credit: gettyimages-luiscarlosjimenezi