Los USA they are one of the world’s largest sugar producers; its production of beet sugar (between 55 and 60%) is somewhat higher than that of cane sugar, according to information from the World Trade Organization (OMC).
Sugar beets are grown in four regions (spanning 11 states) and primarily in rotation with other crops, while sugarcane is grown in Florida, Louisiana, and Texas.
Although the number of sugar beet and sugar cane farms has been declining, production has generally increased due to a combination of several factors: improvement of crop varieties, use of new technologies, expansion of cultivated area and substantial investment in new processing equipment.
As a result of domestic policies, US sugar prices have been consistently above world futures prices.
The Commodity Credit Corporation (CCC) provides limited-call repayment marketing loans to sugar processors, who, in turn, pay sugar beet and sugar cane growers at a rate proportional to the value of the loan.
The 2018 Farm Bill sets loan rates for refined beet sugar ($0.2538 per pound) and raw sugar ($0.1975 per pound) for the 2019 through 2023 crop years.
sugar production
At the end of the loan term (maximum nine months), or any time sooner, borrowers can sell the sugar and repay the loans in full or, if prices are very low, relinquish the sugar given to the CCC as collateral and thus repay the loan.
However, as a result of applied national policies, the probability of non-repayment of loans is generally low. Other mechanisms, such as the Flexibility Program in the Use of Raw Materials (FFP), can also be used to divert surplus sugar for human consumption.
While FFP participants transform sugar into ethanol, processors of sugar sold for human consumption receive marketing quotas, and the amount of the global allocation (OAQ) is equal to at least 85% of the estimated domestic demand for ethanol. marketing campaign.
Surplus sugar produced in the country cannot be sold on the market for human consumption, and remains stored at the owner’s expense.
If a processor cannot market the amount that has been allocated to it, it can be reallocated to other processors in the same state and, if this does not allow the shortfall to be eliminated, the remaining amount can be allocated to processors in other states.
There is no provision that shortfalls due to underutilization of the OAQ should be reallocated to beet sugar processors or vice versa.
If, after the reallocation, a deficit persists, it can be allocated to the CCC to sell the relevant quantity of the product by releasing it from its stocks and, if this is insufficient, the deficit can be allocated to imports.
