HTML _ 98-403 - Farm Commodity Programs: Sugar
24-Apr-1998; Remy Jurenas; 5 p.

Abstract: The Federal Agriculture Improvement and Reform Act of 1996 (P.L 104 127, the 1996 farm act) authorized a sugar program through FY2003 with some changes. Its objective is to ensure the viability of the U.S. sugar producing sector primarily by supporting the incomes of sugar beet and sugarcane producers and of those firms that process each crop into sugar. To accomplish this the U.S. Department of Agriculture (USDA) will continue to protect domestic sugar prices by offering price support loans to sugar processors and by restricting imports of sugar. A new ¨recourse¨ loan feature and ¨loan feature and ¨loan forfeiture penalty,¨ if activated, could inject some uncertainty at times as to the extent to which a price floor for sugar exists. This will depend on the level of projected imports, and on how USDA implements separate statutory authority to restrict the amount and timing of foreign sugar entering the; U.S. market other provisions: freeze price support loan rates for refined beet and raw cane sugar at 1995 crop levels repeal domestic sugar market restrictions, increase the budget deficit assessments paid by sugar processors, and repeal the program ¨no-cost¨ requirement. [read report]

Topics: Agriculture

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