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USDA Invites Offers for Sugar to Ethanol

We reported on 29 July that the final rule for the long anticipated Feedstock Flexibility Program (FFP) was announced. The FFP is intended to avoid sugar loan forfeitures to the Commodity Credit Corporation (CCC) by requiring the diversion of sugar from food use to ethanol production. The first invitation for offers of sugar to be purchased was also announced by USDA yesterday afternoon. Any offers of sugar must be made by 21 August. At that point, USDA will inventory the offers while reserving the right to not accept the full offer made by a sugar mill. No conditional offers will be accepted. USDA will then list the type, amount and location of sugar for bidding by the ethanol mills. The bidding deadline is 28 August which is exactly a t...

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