USDA to Implement Sugar-for-Ethanol Program
April 17, 2013News article: http://www.agri-pulse.com/Rule-implementing-US-sugar-purchases-under-OMB-review-04082013.asp
News article: http://www.reuters.com/article/2013/04/08/us-usa-agriculture-sugar-idUSBRE9370YR20130408?feedType=RSS&feedName=environmentNews
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The United States Department of Agriculture (USDA) has asked the White House to approve the sugar-for-ethanol program, also known as the Feedstock Flexibility Program (FFP), which authorizes the department to purchase as much domestically produced sugar as necessary to maintain market prices above support levels, and then sell the excess to ethanol producers.
Abundant crops in the U.S. and cheap imports from Mexico have pushed sugar prices below the threshold price for potential forfeiture of sugar by processors to the government. The FFP was authorized by the 2008 Farm Bill to help avoid forfeitures. The 2008 Farm Bill directs USDA to make surplus sugar available to ethanol makers, a provision that was aimed at expanding the biofuel feedstock supply.
The White House has 90 days to review the proposed measure. If approved, it would be the first time to put the FFP in operation since its creation in 2008.
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