The U.S. Department of Agriculture’s (USDA) Commodity Credit Corporation (CCC) has announced loan rates for 2011 crop sugar as required by the Food, Conservation, and Energy Act of 2008 (2008 farm bill).

The 2011 crop national average loan rate, as specified in the 2008 farm bill, is 18.75 cents per pound for raw cane sugar and 24.09 cents per pound for refined beet sugar, which is an increase from last year.

These national loan rates are adjusted regionally to reflect marketing cost differentials.

USDA’s Sugar Loan Program provides price support loans to processors of sugar beets and domestically grown sugarcane. Price support loans are non-recourse, meaning producers have the option of delivering the pledged sugar collateral to the CCC as full payment for the loan at maturity.

USDA’s Farm Service Agency (FSA) administers non-recourse loans for the 2008 through 2012 crops on behalf of the CCC.

Sugar and in-process sugar loans are available beginning Oct. 1 of each fiscal year (FY) and mature at the earlier of (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 FY in which the loan is made.

The 2011-crop (FY 2012) raw cane sugar loan rates in cents per pound of cane sugar, raw value are:

• Florida — 18.16;

• Hawaii — 17.46 (18.75 cents per pound if stored on the mainland);

• Louisiana — 19.52;

• Texas — 18.69.