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| 2001
Sugar Payment-In-Kind Diversion Program Results Announced |
By
Ag Weekly
October 18, 2001 |
WASHINGTON, D.C. - The U.S.
Department of Agriculture's Commodity Credit Corporation reported last
week that producers submitted 4,655 acceptable offers comprising 106,451
acres to participate in the 2001 Sugar
Payment-in-Kind (PIK) Diversion Program.
The program offers beet and cane producers the choice of diverting acreage
from harvest in exchange for sugar held in CCC inventory.
The offers submitted would require 236,897
tons of CCC-held sugar as payment. But, because the program is limited to
200,000 tons, producers were asked to indicate the amount of sugar they
would require to divert each acre from harvest. Offers were then ranked
from the lowest to the highest and accepted until the 200,000-ton limit
was reached.
The CCC now holds 740,682 tons in inventory
and reducing that stock will reduce inventory costs and help alleviate the
current supply/use imbalance.
Each producer is limited to a maximum of
$20,000 value in CCC-held sugar. Producers will receive notification
letters regarding their offers.
Accordingly, CCC will accept all offers
with a "ranking percentage" of 87.9931 or less provided the
offer meets all other eligibility requirements. CCC will transfer title to
the CCC-held sugar no later than March 31, 2002. Producers, or their
assignees, will be notified when the transfer of title occurs. |
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