Analysis shows OBBB alters USDA sugar loan rates, narrowing price gaps for support in the market.
This brief looks at the impact of the One Big Beautiful Bill Act (OBBB) on the USDA sugar loan program. The Act implemented substantial rate hikes, raising raw cane sugar to 24 cents per pound and refined beet sugar to 32.77 cents per pound. While high market prices have historically prevented loan forfeitures since 2013, this analysis shows that recent price declines combined with the OBBB’s higher loan rates have significantly narrowed the gap. By late 2025, the margin between spot prices and the loan rate for refined beet sugar shrank to 16 percent, increasing the potential for active price support.
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Dylan Turner (2025) studied this question.
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