Stable Sugar Market Halts USDA Sugar Plan

USDA Sees No Need for Feedstock Flexibility Program Actions in 2024

The U.S. Department of Agriculture (USDA) has announced that it does not anticipate the need to activate the Feedstock Flexibility Program for the 2024 crop year. This decision is based on stable sugar stock levels and no predicted loan forfeitures.

This program, created in 2008 and extended by the 2018 Farm Bill, allows the USDA to purchase excess sugar and sell it to bioenergy producers.

Its goal is to prevent sugar from flooding the food-use market when processors can't repay USDA loans and might otherwise forfeit their sugar.

Each quarter, the USDA's Commodity Credit Corporation (CCC) must evaluate whether program actions are necessary.

According to the March 11, 2025, World Agricultural Supply and Demand Estimates (WASDE) report, sugar stocks for the 2024 crop year are not expected to cause forfeitures.

Under federal guidelines, sugar processors can take loans during harvests, using their sugar as collateral. If prices drop and loans can't be repaid, the USDA typically steps in. This year, however, market conditions show no such need.

In its official statement, the USDA noted, “USDA will closely monitor domestic sugar stocks, consumption, imports and other sugar market variables on an ongoing basis and will continue to administer the sugar program as transparently as possible using the latest available data.”

Because of this stability, USDA will refrain from making sugar purchases or sales under the Feedstock Flexibility Program. The next update will come by July 1, 2025.