American wool producers might want to take a look at this week’s Loan Deficiency Program (LDP) rates, as there were some significant changes from the previous week on graded wool.
For instance, the effective repayment rate on graded wool finer than 18.6 micron dropped to $3.37 per clean pound. This means, this week, a producer can claim a 51 cent LDP in that graded micron range, if they still have beneficial interest and meet other requirements. The repayment rate for 18.6 to 19.5 graded micron dropped to $2.99 per clean pound – good for a 39 cent LDP. And for the first time in recent memory, there’s even an LDP (6 cents per clean pound) available on graded wools from 19.6 to 20.5 micron.
LDPs are also available – as they have been in recent months – on the coarsest graded wools: 42 cents per pound for wools in the 26 to 28.9 and 29 and above micron ranges. A 30-cent LDP is also still available for ungraded wool.
“We continue to work with the U.S. Department of Agriculture to review this program” said ASI Deputy Director Rita Samuelson. “We appreciate the assistance of USDA FPAC to avail the LDP program to the wool industry and review it annually to be sure it is as helpful as possible to American wool growers. The American wool industry has faced difficulties in the past two years, first because of the U.S.-China trade war and now with the COVID-19 pandemic. ASI encourages producers to meet with their local agency representatives to discuss ways in which they might benefit from these valuable programs, if they have not already.”
To be eligible to apply for these programs the producer must:
- have beneficial interest in the wool
- meet the definition of an eligible producer
- sheep must be grown and shorn in the U.S.
- have ownership of the sheep at least 30 days before shearing
- wool must be shorn and in storable condition
Other eligibility and documentation requirements may apply.
For questions about these programs, to apply, and for more information, please contact your local Farm Service Agency Office.
Photo Credited: University of Wyoming Wool Judging
American Sheep Industry
Northern Ag Country – 2020