§1359ee Reassignment of deficits

Summary

When sugar allotments are in place, the Secretary must check from time to time—using current sugar stocks, expected production and sales, and other facts—whether any cane or beet sugar processor will not be able to sell the sugar that was assigned to them. If a cane sugar processor cannot market its share, the Secretary first moves that shortfall to other processors in the same State based on each processor’s ability and the interests of the farmers they serve. If there is still a shortfall, the Secretary spreads it to other cane sugar States, allocating amounts among processors there. If the shortfall remains, the Secretary assigns the amount to the Commodity Credit Corporation (CCC) and sells CCC sugar unless those sales would significantly affect sugar prices. Any remaining shortfall is reassigned to imports of raw cane sugar. For beet sugar, the Secretary first reallocates the shortfall to other beet processors, then to the CCC (with sales unless prices would be affected), and then to imports if needed. For beet sugar, the Secretary must base the first decision on the January World Agricultural Supply and Demand Estimates approved by the World Agricultural Outlook Board and must make the first reassignment within 30 days after that report is released. Any processor that gets reassigned sugar has its allocation increased by that amount.