| WASHINGTON (Dow Jones)--The U.S. Department of Agriculture
Friday announced sugar processors have forfeited an additional 96 million
pounds of cane sugar, at a value of $17 million, to the federal government
rather than repay their loans. On Thursday, the USDA announced forfeitures
of 84 million pounds of beet sugar, at a value of $18.648 million.
Some 2.207 billion pounds of beet sugar, at a value of $503 million,
was originally placed under government loan, the USDA said. Around 1.807
billion pounds of cane sugar was placed under government loan. The first
loan was due July 31, but the bulk of the loans were due Aug. 31 or Sept.
30, according to USDA.
Under the loan program administered by USDA, processors get a
guaranteed minimum price of 18 cents per pound for their sugar.
Forfeitures have been widely expected since domestic prices have fallen
below the loan rate and processors would rather forfeit their sugar to the
government rather than pay back their loans. |