Subtopic: Overview of U.S. Sugar Program
– Federal commodity support program for sugar industry
– Maintains minimum price for sugar
– Authorized by the 2002 farm bill (P.L. 107–171, Sec. 1401–1403)
– Covers 2002-2007 crops of sugar beets and sugarcane
– Designed to protect incomes of growers and firms in the sugar industry
Subtopic: Support Mechanisms
– Provides nonrecourse loans to processors
– Sets restrictions on sugar imports using tariff rate quota
– Limits the amount of sugar processors can sell domestically
– Import restrictions align with U.S. commitments under NAFTA and Uruguay Round Agreement on Agriculture
– Marketing allotments and payment-in-kind authority help USDA meet no-cost-requirements
Subtopic: Key Components
– Processor and refiner marketing allotments set by USDA
– Storage loan program for sugar processors
– Reduction in USDA interest rate charged on sugar loans
– Program aims to prevent forfeiture of sugar put under loan
– Designed to support domestic sugar prices and avoid competition with corn syrup sweetener
Subtopic: Compliance and Trade Agreements
– Import restrictions to meet U.S. commitments under NAFTA and Uruguay Round Agreement on Agriculture
– Processor and refiner marketing allotments set by USDA
– Program components align with statutory requirements
– Marketing allotments and payment-in-kind authority to meet federal government no-cost-requirements
– Measures in place to avoid sugar forfeiture and maintain program integrity
Subtopic: Citations and References
– Public domain material incorporated from Jasper Womach’s report for Congress
– Report titled “Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition”
– Congressional Research Service provided the report
– Additional citations needed for verification
– Sources like news, newspapers, books, and JSTOR recommended for further information
This article needs to be updated. (November 2023) |
This article needs additional citations for verification. (November 2023) |
The U.S. Sugar program is the federal commodity support program that maintains a minimum price for sugar, authorized by the 2002 farm bill (P.L. 107–171, Sec. 1401–1403) to cover the 2002-2007 crops of sugar beets and sugarcane.
Originally designed to protect the incomes of the sugar industry-growers of sugarcane and sugar beets, and firms that process each crop into sugar - the program now prevents them from competing with producers of corn syrup sweetener. It supports domestic sugar prices by:
- (1) making available nonrecourse loans to processors (not less than 18¢/lb. for raw cane sugar, or 22.9¢/lb. for refined beet sugar);
- (2) restricting sugar imports using a tariff rate quota, and
- (3) limiting the amount of sugar that processors can sell domestically (under marketing allotments) when imports are below 1.532 million short tons.
Import restrictions are intended to meet U.S. commitments under the North American Free Trade Agreement (NAFTA) and Uruguay Round Agreement on Agriculture. Processor and refiner marketing allotments are set by USDA according to statutory requirements. Marketing allotments and new payment-in-kind authority are designed to help the USDA meet the no-cost-requirements to the federal government by avoiding the forfeiture of sugar put under loan. Other parts of the new program can include a storage loan program for sugar processors, and reduced (by 1%) the USDA interest rate charged on sugar loans.