Thousands of tons were forfeited to the Commodity Credit Corporation
According to a recent Farm Service Agency news release, 534,277 tons, raw value, of beet sugar and 269,307 tons, raw value, of cane sugar were forfeited as loan collateral to the Commodity Credit Corporation October 2. These amounts equate to 88 percent of the maturing beet sugar loan quantities and 68 percent of the maturing cane sugar loan quantities.
The forfeitures will cost the CCC $321.6 million in loan principle but borrowers paid $15.9 million in penalty fees.
The CCC now holds 1,100,233 tons, raw value or about 12.2 percent of the FY 2000 domestic sugar production. But it will use around 290,000 tons for this year's Payment-In-Kind program.