New federal sugar loan rates, revised marketing allotments, and processor allocations aim to support U.S. sugar producers while ensuring adequate domestic supplies through fiscal year 2027.
The U.S. Department of Agriculture (USDA) has announced higher sugar loan rates for the 2026 crop year and established fiscal year 2027 marketing allotments for the nation's sugar beet and sugarcane industries.
The measures, administered through the Commodity Credit Corporation (CCC), are intended to provide financial stability for sugar producers while helping ensure adequate supplies of sugar remain available to domestic consumers.
Under the updated program, the national average loan rate will increase to 24.00 cents per pound for raw cane sugar and 32.77 cents per pound for refined beet sugar. The increases stem from provisions included in the Working Families Tax Cuts Act and mark an important adjustment for sugar processors and growers across the country.
USDA's sugar loan program provides short-term financing to processors of sugar beets and domestically grown sugarcane. The loans allow harvested sugar to be stored during periods when market prices are typically weaker and sold later when market conditions may offer better returns.
Loans for the 2026 crop year become available beginning October 1, 2026. They mature after a nine-month period or at the end of the fiscal year in which the loan was issued, whichever comes first. Processors also retain the option of delivering pledged sugar collateral to CCC as full repayment at maturity.
Regional Sugar Beet Loan Rates Announced
Because transportation and marketing costs vary across production regions, USDA adjusts loan rates geographically.
For refined beet sugar, California received the highest loan rate at 34.08 cents per pound. Other regional rates include:
- Michigan and Ohio: 33.47 cents per pound
- Colorado, Nebraska and southeastern Wyoming: 33.50 cents per pound
- Montana, northwestern Wyoming and western North Dakota: 33.04 cents per pound
- Minnesota and eastern North Dakota: 32.63 cents per pound
- Idaho, Oregon and Washington: 32.53 cents per pound
For raw cane sugar, Florida's loan rate was established at 22.84 cents per pound, while Louisiana producers will receive 25.07 cents per pound.
USDA noted that Hawaii permanently exited commercial sugar production in 2017 and that Texas ceased sugar production during fiscal year 2025, reducing the number of active sugarcane-producing regions in the country.
Minimum Grower Payments Remain Mandatory
Processors receiving CCC loans must continue meeting minimum payment requirements for growers supplying sugar beets and sugarcane.
Sugar beet processor payments will continue to be governed by terms established in grower contracts. Sugarcane processors must provide growers with minimum compensation tied to revenue generated from both sugar and molasses production.
For fiscal year 2027, minimum sugarcane grower payments were set at:
- Florida: $33.58 per ton
- Louisiana: $39.17 per gross ton
Processors that do not satisfy the required minimum payments will become ineligible for USDA sugar loans.
Fiscal Year 2026 Allocations Reassigned
USDA also announced fiscal year 2026 reallocations after reviewing processors' ability to market their allotted sugar volumes.
Under federal law, allocations can be shifted from processors with surplus marketing capacity to those facing deficits. The agency determined that reallocations were warranted in both the sugar beet and sugarcane sectors.
The changes primarily affect processor-specific allocations while keeping overall sector allotments unchanged. USDA indicated the adjustments are intended to improve market efficiency and ensure available production can reach consumers.
FY 2026 Revised Beet/Cane Allotments and Allocations (Short Tons, Raw Value)| Distribution | Initial FY26 Allotments & Allocations | Reassignments | Revised Allotments & Allocations |
|---|
| Beet Sugar | 5,525,221 | 0 | 5,525,221 |
| Cane Sugar | 4,640,779 | 0 | 4,640,779 |
| Imports | | 0 | 0 |
| Total OAQ | 10,166,000 | 0 | 10,166,000 |
| Beet Processors' Marketing Allocations |
| Amalgamated Sugar Co | 1,182,992 | 70,374 | 1,253,366 |
| American Crystal Sugar Co | 2,031,883 | 30,412 | 2,062,295 |
| Michigan Sugar Co | 570,620 | 49,008 | 619,628 |
| Minn-Dak Farmers Co-op | 383,721 | -18,201 | 365,520 |
| So. Minn Beet Sugar Co-op | 745,729 | -204,443 | 541,286 |
| Western Sugar Co | 564,013 | 58,593 | 622,606 |
| Wyoming Sugar Company, LLC | 46,264 | 14,256 | 60,519 |
| Total Beet Sugar | 5,525,221 | 0 | 5,525,221 |
| State Cane Sugar Allotments |
| Florida | 2,616,569 | -315,464 | 2,301,104 |
| Louisiana | 2,024,210 | 315,464 | 2,339,675 |
| Texas | 0 | 0 | 0 |
| Total Cane Sugar | 4,640,779 | 0 | 4,640,779 |
| Cane Processors' Marketing Allocations |
| Florida Crystals | 1,077,310 | -213,789 | 863,521 |
| Growers Co-op. of FL | 470,682 | -30,795 | 439,888 |
| U.S. Sugar Corp | 1,068,577 | -70,880 | 997,696 |
| Total Florida | 2,616,569 | -315,464 | 2,301,104 |
| Sugar Growers and Refiners | 1,405,272 | 215,900 | 1,621,172 |
| M.A. Patout & Sons | 618,938 | 99,565 | 718,502 |
| Total Louisiana | 2,024,210 | 315,464 | 2,339,675 |
| Rio Grande Valley | 0 | 0 | 0 |
* Values may not sum to column totals due to rounding.
Larger Marketing Allotment Established for Fiscal Year 2027
Looking ahead, CCC established the fiscal year 2027 overall sugar marketing allotment at 10.57 million short tons, raw value.
That figure represents 85 percent of USDA's forecast domestic human sugar consumption of 12.44 million short tons, as estimated in the September 2026 World Agricultural Supply and Demand Estimates report.
The allotment will be divided between the two major production sectors:
- Sugar beet sector: 5.75 million short tons raw value, or 54.35 percent
- Sugarcane sector: 4.83 million short tons raw value, or 45.65 percent
Federal law traditionally reserved a portion of the sugarcane allotment for offshore states. However, because both Hawaii and Puerto Rico have permanently exited commercial sugarcane production, USDA allocated those volumes among mainland sugarcane-producing states.
The agency also redistributed Texas' share because no commercial sugarcane crop is expected to be produced there during fiscal year 2027.
Louisiana Exempt from Proportionate Share Limits
CCC further determined that farm-level proportionate shares will not be necessary in Louisiana during fiscal year 2027.
Louisiana is the only state where such limits can be applied, but USDA concluded the cane sugar sector is not expected to fully utilize its allotted volume. As a result, production controls at the farm level were deemed unnecessary for the upcoming year.
USDA Monitoring Market Conditions
USDA said it will continue monitoring sugar stocks, consumption trends, imports and other market indicators throughout the year.
Officials indicated the agency remains prepared to make additional program adjustments if market conditions change, with the goal of maintaining adequate supplies of both raw and refined sugar for domestic users while supporting the long-term stability of the U.S. sugar sector.
For sugar beet and sugarcane producers, the combination of higher loan rates and updated marketing allotments signals continued federal support as the industry adapts to shifting production patterns and evolving market demand.
Photo Credit: Pexels - Jean de Roy