Stable sugar market ends 2024 FFP actions

Dec 18, 2024
By Farms.com

USDA predicts no sugar purchases needed

The USDA has declared no plans to activate the Feedstock Flexibility Program (FFP) for the 2024 crop year, citing balanced sugar stocks and consumption levels. This decision aligns with the agency’s December 2024 World Agricultural Supply and Demand Estimates report.

The FFP, created under the 2008 Farm Bill and reauthorized in 2018, is designed to address surplus sugar by purchasing and selling it to bioenergy producers.

This prevents loan forfeitures by sugar processors who secure loans with sugar as collateral. However, current projections indicate stable stocks, eliminating the need for intervention.

“USDA’s transparent administration ensures fair and stable sugar markets,” a USDA spokesperson emphasized. Monitoring continues, with the next update on April 1, 2025.

The absence of FFP actions highlights broader USDA efforts to promote resilient markets and support producers. By leveraging crop and consumption data, the agency ensures stability while avoiding unnecessary market disruptions. 

To learn more, visit usda.gov.

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