Business / Agriculture / Loan Forfeiture: Under commodity program rules, a producer or processor who pledges a stored commodity as collateral to the Commodity Credit Corporation to obtain a nonrecourse loan can settle the repayment obligation by forfeiting the commodity without any penalty. This happens, by design, if forfeiture is more profitable than selling the commodity in the marketplace. In this way the loan program serves a price support function.
Business / Agriculture / Loan Forfeiture Level: 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 h MORE
Business / Agriculture / Forfeiture Penalty (Sugar): A penalty paid to the Commodity Credit Corporation by a processor of sugar beets or sugarcane who, having taken out a nonrecourse loan, decides to hand over sugar pledged as collateral to the CCC rath MORE