Farm Service Agency

Public Affairs Staff

1400 Independence Ave SW

Stop 0506, Room 3624-South

Washington, D.C. 20250-0506

Release No. 1466.06

WASHINGTON, June 21, 2006 - The U.S. Department of Agriculture's Commodity Credit Corporation (CCC) today announced loan rates for 2006-crop sugar as required by the 2002 Farm Bill. The 2006-crop national average loan

rates are 18 cents per pound for raw cane sugar and 22.90 cents per pound for refined beet sugar. Both rates are unchanged from last year. CCC adjusts national loan rates by region to reflect freight differentials.

USDA's Sugar Loan Program provides nonrecourse loans to processors of domestically grown sugarcane and sugar beets. Price support loans are nonrecourse because the commodity is pledged as loan collateral and processors have the option to deliver that collateral to CCC as full payment for the loan at maturity. USDA's Farm Service Agency (FSA) administers nonrecourse loans for 2002 through 2007 crops on behalf of CCC. Sugar and in-process sugar loans are available beginning October 1 each fiscal year. The loans mature at the earlier of either: (1) the end of the 9-month period beginning on the first day of the first month after the month in which the loan is made; or (2) the end of the fiscal year in which the loan is made.

The following are the refined beet sugar processing regions and applicable 2006-crop (Fiscal Year [FY] 2007) loan rates.

Region Cents Per Pound of Refined Beet Sugar

Michigan and Ohio 24.13

Minnesota and the eastern

half of North Dakota 22.91

Northeastern quarter of

Colorado, Nebraska and the

southeastern quarter of

Wyoming 22.94

Montana, northwestern

quarter of Wyoming and the

western half of North Dakota 22.76

Idaho, Oregon and Washington 22.04

California 23.77

Loan Rates for Raw Cane Sugar

The following are the 2006-crop (FY 2007) raw cane sugar loan rates.

State Cents Per Pound of Cane Sugar, Raw Value

Florida 17.93

Hawaii 17.00*

Louisiana 18.33

Texas 17.93

*18.00 cents per pound if stored on the mainland.

Sugar beet and sugarcane processors receiving CCC loans in FY 2007 must make minimum grower payments for all sugar beets and sugarcane received from growers. Processors failing to meet the required minimum grower payment will be ineligible for loans. Grower/processor contracts specify minimum payment amounts to sugar beet growers and how a grower's payment level can be adjusted. Sugarcane processors must pay at least the following payment levels for average quality sugarcane to their growers:

Florida $27.63 per net ton

Hawaii $24.36 per net ton

Louisiana $24.44 per gross ton

Texas $22.60 per gross ton

For more information, contact your local USDA Service Center or Barbara Fecso at (202) 720-4146, barbara.fecso@wdc.usda.gov.

NOTE: Farm Service Agency (FSA) news releases are accessible through FSA's home page:

http://www.fsa.usda.gov.