September 20, 2000

USDA's Farm Service Agency says preliminary results of the fiscal year 2000 sugar payment-in-kind (PIK) diversion program sign-up that ended Sept. 1 show more than 5,000 offers to divert about 100,000 acres from sugar production.

Up to 290,000 tons of USDA-owned refined sugar may be provided to producers based on past average yields and number of acres offered under the program. Final processing of all bid data is incomplete, so the numbers are subject to change. Once processing is complete, a regional summary of participation will be released.

By reducing this year's harvest, the PIK program will help reduce government inventory costs, reduce potential forfeitures of loan collateral, and help alleviate the current over-supply of sugar, according to USDA.

The department will transfer title of sugar it holds to the participating producers, or their respective assignees, no earlier than Oct. 1 and no later than Dec. 31. Transferring title to 290,000 tons of refined sugar held in inventory will result in a $580,000 reduction in monthly storage-related outlays.