Home >  Term: loan forfeiture level, sugar
loan forfeiture level, sugar

The lowest market price that a processor must receive before concluding that forfeiting pledged sugar to the Commodity Credit Corporation is more profitable than selling the sugar. In practice, USDA has calculated the loan forfeiture level to be equal to the loan rate, plus transportation costs to a refinery (applicable only for raw cane sugar) plus interest expenses on a nonrecourse loan minus a sugar loan forfeiture penalty.

0 0

Penulis

  • AjayOwor
  •  (Gold) 1463 poin
  • 100% positive feedback
© 2024 CSOFT International, Ltd.