As the wool market struggles during the current worldwide pandemic, now might be a good time for wool producers to look into the Farm Service Agency’s Wool Loan Deficiency Payment Program.
Just this week, LDP payments were available for fine wool (finer than 18.6 micron), as well as coarse wool (ranging from 26 micron and up). Payment rates change weekly, but wool finer than 18.6 micron was eligible for a 35 cent per pound payment this week. Wool from 26 to 28.9 micron was eligible for a 23 cent per pound payment and wool 29 micron and coarser was eligible for a 24 cent per pound payment.
“Wools have been going into storage so we understand there is now an interest in the loan function of this program and we met with USDA’s Farm Service Agency to share the latest information plus review options for loans with or without objective measurement tests,” said ASI Executive Director Peter Orwick. “It has been more than a decade since loans or the deficiency payments were used widely, so it is a good idea that the agency coordinate information across its offices and with sheep producers. We must work together to maximize use of this program. It is imperative that the entire wool industry – from buyers to warehouses to producers – share prices of wool sold to USDA’s Agricultural Marketing Service.”
Producers with questions about the Wool LDP Program should contact their local FSA office.