7 U.S.C. § 7272
Section 7272 · Sugar program
Current version, with additions and removals from the October 28, 2000 version.
The Secretary shall make loans available to processors of domestically grown sugarcane at a rate equal to 18 cents per pound for raw cane sugar.
The Secretary shall make loans available to processors of domestically grown sugar beets at a rate equal to 22.9 cents per pound for refined beet sugar.
(1) Reduction required
The Secretary shall reduce the loan rate specified in subsection (a) of this section for domestically grown sugarcane and subsection (b) of this section for domestically grown sugar beets if the Secretary determines that negotiated reductions in export subsidies and domestic subsidies provided for sugar of other major sugar growing, producing, and exporting countries in the aggregate exceed the commitments made as part of the Agreement on Agriculture.
(2) Extent of reduction
The Secretary shall not reduce the loan rate under subsection (a) or (b) of this section below a rate that provides an equal measure of support to that provided by other major sugar growing, producing, and exporting countries, based on an examination of both domestic and export subsidies subject to reduction in the Agreement on Agriculture.
(3) Announcement of reduction
The Secretary shall announce any loan rate reduction to be made under this subsection as far in advance as is practicable.
(4) Definitions
In this subsection:
(A) Agreement on Agriculture
The term “Agreement on Agriculture” means the Agreement on Agriculture referred to in section 3511(d)(2) of title 19.
(B) Major sugar countries
The term “major sugar growing, producing, and exporting countries” means—
(i) the countries of the European Union; and
(ii) the 10 foreign countries not covered by subparagraph (A) 1 that the Secretary determines produce the greatest quantity of sugar.
(1) In general
A loan under this section during any fiscal year shall be made available not earlier than the beginning of the fiscal year and shall mature at the earlier of—
(A) 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
(B) the end of the fiscal year in which the loan is made.
(2) Supplemental loans
In the case of a loan made under this section in the last 3 months of a fiscal year, the processor may repledge the sugar as collateral for a second loan in the subsequent fiscal year, except that the second loan shall—
(A) be made at the loan rate in effect at the time the second loan is made; and
(B) mature in 9 months less the quantity of time that the first loan was in effect.
(1) Nonrecourse loans
The Secretary shall carry out this section through the use of nonrecourse loans.
(2) Processor assurances
The Secretary shall obtain from each processor that receives a loan under this section such assurances as the Secretary considers adequate to ensure that the processor will provide payments to producers that are proportional to the value of the loan received by the processor for sugar beets and sugarcane delivered by producers served by the processor. The Secretary may establish appropriate minimum payments for purposes of this paragraph.
(1) Sugarcane
Effective for marketings of raw cane sugar during the 1996 through 2003 fiscal years, the first processor of sugarcane shall remit to the Commodity Credit Corporation a nonrefundable marketing assessment in an amount equal to—
(A) in the case of marketings during fiscal year 1996, 1.1 percent of the loan rate established under subsection (a) of this section per pound of raw cane sugar, processed by the processor from domestically produced sugarcane or sugarcane molasses, that has been marketed (including the transfer or delivery of the sugar to a refinery for further processing or marketing); and
(B) in the case of marketings during each of fiscal years 1997 through 2003, 1.375 percent of the loan rate established under subsection (a) of this section per pound of raw cane sugar, processed by the processor from domestically produced sugarcane or sugarcane molasses, that has been marketed (including the transfer or delivery of the sugar to a refinery for further processing or marketing).
(2) Sugar beets
Effective for marketings of beet sugar during the 1996 through 2003 fiscal years, the first processor of sugar beets shall remit to the Commodity Credit Corporation a nonrefundable marketing assessment in an amount equal to—
(A) in the case of marketings during fiscal year 1996, 1.1794 percent of the loan rate established under subsection (a) of this section per pound of beet sugar, processed by the processor from domestically produced sugar beets or sugar beet molasses, that has been marketed; and
(B) in the case of marketings during each of fiscal years 1997 through 2003, 1.47425 percent of the loan rate established under subsection (a) of this section per pound of beet sugar, processed by the processor from domestically produced sugar beets or sugar beet molasses, that has been marketed.
(3) Collection
(A) Timing
A marketing assessment required under this subsection shall be collected on a monthly basis and shall be remitted to the Commodity Credit Corporation not later than 30 days after the end of each month. Any cane sugar or beet sugar processed during a fiscal year that has not been marketed by September 30 of the year shall be subject to assessment on that date. The sugar shall not be subject to a second assessment at the time that it is marketed.
(B) Manner
Subject to subparagraph (A), marketing assessments shall be collected under this subsection in the manner prescribed by the Secretary and shall be nonrefundable.
(4) Penalties
If any person fails to remit the assessment required by this subsection or fails to comply with such requirements for recordkeeping or otherwise as are required by the Secretary to carry out this subsection, the person shall be liable to the Secretary for a civil penalty up to an amount determined by multiplying—
(A) the quantity of cane sugar or beet sugar involved in the violation; by
(B) the loan rate for the applicable crop of sugarcane or sugar beets.
(5) Enforcement
The Secretary may enforce this subsection in a court of the United States.
(1) In general
A penalty shall be assessed on the forfeiture of any sugar pledged as collateral for a nonrecourse loan under this section.
(2) Cane sugar
The penalty for cane sugar shall be 1 cent per pound.
(3) Beet sugar
The penalty for beet sugar shall bear the same relation to the penalty for cane sugar as the marketing assessment for sugar beets bears to the marketing assessment for sugarcane.
(4) Effect of forfeiture
Any payments owed producers by a processor that forfeits any sugar pledged as collateral for a nonrecourse loan shall be reduced in proportion to the loan forfeiture penalty incurred by the processor.
(1) Duty of processors and refiners to report
A sugarcane processor, cane sugar refiner, and sugar beet processor shall furnish the Secretary, on a monthly basis, such information as the Secretary may require to administer sugar programs, including the quantity of purchases of sugarcane, sugar beets, and sugar, and production, importation, distribution, and stock levels of sugar.
(2) Penalty
Any person willfully failing or refusing to furnish the information, or furnishing willfully any false information, shall be subject to a civil penalty of not more than $10,000 for each such violation.
(3) Monthly reports
Taking into consideration the information received under paragraph (1), the Secretary shall publish on a monthly basis composite data on production, imports, distribution, and stock levels of sugar.
This section (other than subsection (f) of this section) shall be effective only for the 1996 through 2002 crops of sugar beets and sugarcane.
The Secretary shall make loans available to processors of domestically grown sugarcane at a rate equal to—
18.00 cents per pound for raw cane sugar for the 2008 crop year;
18.25 cents per pound for raw cane sugar for the 2009 crop year;
18.50 cents per pound for raw cane sugar for the 2010 crop year;
18.75 cents per pound for raw cane sugar for each of the 2011 through 2018 crop years;
19.75 cents per pound for raw cane sugar for each of the 2019 through 2024 crop years; and
24.00 cents per pound for raw cane sugar for each of the 2025 through 2031 crop years.
The Secretary shall make loans available to processors of domestically grown sugar beets at a rate equal to—
22.9 cents per pound for refined beet sugar for the 2008 crop year;
a rate that is equal to 128.5 percent of the loan rate per pound of raw cane sugar for the applicable crop year under subsection (a) for each of the 2009 through 2024 crop years; and
a rate that is equal to 136.55 percent of the loan rate per pound of raw cane sugar under subsection (a)(6) for each of the 2025 through 2031 crop years.
A loan under this section during any fiscal year shall be made available not earlier than the beginning of the fiscal year and shall mature at the earlier of—
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
the end of the fiscal year in which the loan is made.
In the case of a loan made under this section in the last 3 months of a fiscal year, the processor may repledge the sugar as collateral for a second loan in the subsequent fiscal year, except that the second loan shall—
be made at the loan rate in effect at the time the first loan was made; and
mature in 9 months less the quantity of time that the first loan was in effect.
The Secretary shall carry out this section through the use of nonrecourse loans.
The Secretary shall obtain from each processor that receives a loan under this section such assurances as the Secretary considers adequate to ensure that the processor will provide payments to producers that are proportional to the value of the loan received by the processor for the sugar beets and sugarcane delivered by producers to the processor.
Subject to clause (ii), the Secretary may establish appropriate minimum payments for purposes of this paragraph.
In the case of sugar beets, the minimum payment established under clause (i) shall not exceed the rate of payment provided for under the applicable contract between a sugar beet producer and a sugar beet processor.
The Secretary may not impose or enforce any prenotification requirement, or similar administrative requirement not otherwise in effect on May 13, 2002, that has the effect of preventing a processor from electing to forfeit the loan collateral (of an acceptable grade and quality) on the maturity of the loan.
In this subsection, the term “in-process sugars and syrups” does not include raw sugar, liquid sugar, invert sugar, invert syrup, or other finished product that is otherwise eligible for a loan under subsection (a) or (b).
The Secretary shall make nonrecourse loans available to processors of a crop of domestically grown sugarcane and sugar beets for in-process sugars and syrups derived from the crop.
The loan rate shall be equal to 80 percent of the loan rate applicable to raw cane sugar or refined beet sugar, as determined by the Secretary on the basis of the source material for the in-process sugars and syrups.
As a condition of the forfeiture of in-process sugars and syrups serving as collateral for a loan under paragraph (2), the processor shall, within such reasonable time period as the Secretary may prescribe and at no cost to the Commodity Credit Corporation, convert the in-process sugars and syrups into raw cane sugar or refined beet sugar of acceptable grade and quality for sugars eligible for loans under subsection (a) or (b).
Once the in-process sugars and syrups are fully processed into raw cane sugar or refined beet sugar, the processor shall transfer the sugar to the Commodity Credit Corporation.
On transfer of the sugar, the Secretary shall make a payment to the processor in an amount equal to the amount obtained by multiplying—
the difference between—
the loan rate for raw cane sugar or refined beet sugar, as appropriate; and
the loan rate the processor received under paragraph (3); by
the quantity of sugar transferred to the Secretary.
If the processor does not forfeit the collateral as described in paragraph (4), but instead further processes the in-process sugars and syrups into raw cane sugar or refined beet sugar and repays the loan on the in-process sugars and syrups, the processor may obtain a loan under subsection (a) or (b) for the raw cane sugar or refined beet sugar, as appropriate.
The term of a loan made under this subsection for a quantity of in-process sugars and syrups, when combined with the term of a loan made with respect to the raw cane sugar or refined beet sugar derived from the in-process sugars and syrups, may not exceed 9 months, consistent with subsection (c).
Subject to subsection (d)(3), to the maximum extent practicable, the Secretary shall operate the program established under this section at no cost to the Federal Government by avoiding the forfeiture of sugar to the Commodity Credit Corporation.
To carry out paragraph (1), the Commodity Credit Corporation may accept bids to obtain raw cane sugar or refined beet sugar in the inventory of the Commodity Credit Corporation from (or otherwise make available such commodities, on appropriate terms and conditions, to) processors of sugarcane and processors of sugar beets (acting in conjunction with the producers of the sugarcane or sugar beets processed by the processors) in return for the reduction of production of raw cane sugar or refined beet sugar, as appropriate.
If a reduction in the quantity of production accepted under subparagraph (A) involves sugar beets or sugarcane that has already been planted, the sugar beets or sugarcane so planted may not be used for any commercial purpose other than as a bioenergy feedstock.
The authority provided under this paragraph is in addition to any authority of the Commodity Credit Corporation under any other law.
A sugarcane processor, cane sugar refiner, and sugar beet processor shall furnish the Secretary, on a monthly basis, such information as the Secretary may require to administer sugar programs, including the quantity of purchases of sugarcane, sugar beets, and sugar, and production, importation, distribution, and stock levels of sugar.
As a condition of a loan made to a processor for the benefit of a producer, the Secretary shall require each producer of sugarcane located in a State (other than the Commonwealth of Puerto Rico) in which there are in excess of 250 producers of sugarcane to report, in the manner prescribed by the Secretary, the sugarcane yields and acres planted to sugarcane of the producer.
The Secretary may require each producer of sugarcane or sugar beets not covered by subparagraph (A) to report, in a manner prescribed by the Secretary, the yields of, and acres planted to, sugarcane or sugar beets, respectively, of the producer.
Except as provided in subparagraph (B), the Secretary shall require an importer of sugars, syrups, or molasses to be used for human consumption or to be used for the extraction of sugar for human consumption to report, in the manner prescribed by the Secretary, the quantities of the products imported by the importer and the sugar content or equivalent of the products.
Subparagraph (A) shall not apply to sugars, syrups, or molasses that are within the quantities of tariff-rate quotas that are subject to the lower rate of duties.
The Secretary shall collect—
information on the production, consumption, stocks, and trade of sugar in Mexico, including United States exports of sugar to Mexico; and
publicly available information on Mexican production, consumption, and trade of high fructose corn syrups.
The data collected under subparagraph (A) shall be published in each edition of the World Agricultural Supply and Demand Estimates.
Any person willfully failing or refusing to furnish the information required to be reported by paragraph (1), (2), or (3), or furnishing willfully false information, shall be subject to a civil penalty of not more than $10,000 for each such violation.
Taking into consideration the information received under this subsection, the Secretary shall publish on a monthly basis composite data on production, imports, distribution, and stock levels of sugar.
For purposes of Additional U.S. Note 6 to chapter 17 of the Harmonized Tariff Schedule of the United States and the reexport programs and polyhydric alcohol program administered by the Secretary, all refined sugars (whether derived from sugar beets or sugarcane) produced by cane sugar refineries and beet sugar processors shall be fully substitutable for the export of sugar and sugar-containing products under those programs.
This section shall be effective only for the 2008 through 2031 crops of sugar beets and sugarcane.