(NAFB)--The results of the September 18th Feedstock Flexibility Program offer have been announced by USDA’s Commodity Credit Corporation. CCC purchased 136,026 short tons of refined beet sugar for approximately 65.9-million dollars. That sugar was immediately re-sold to bioenergy producers for approximately 12.6-million - resulting in a net expenditure to CCC of 53.3-million dollars.
The Feedstock Flexibility Program was established in the 2008 Farm Bill. It directs the Secretary of Agriculture to purchase sugar for bioenergy production as a means to avoid forfeiture of sugar pledged as collateral by processors who borrow from the Commodity Credit Corporation. The sugar purchased by CCC requires sugar loan repayments - preventing forfeitures of loan collateral. To comply with the sequestration order that is currently in place - the amount of sugar purchased from acceptable offers for the program was reduced by 5.1-percent below the amount that was offered.