Wednesday, December 9, 2009

Wool and mohair loan rates

USDA recently announced 2010 national loan rates for wool and mohair. Starting next year, loan rates and posted prices will no longer be regionally-based.

Wool delivered to the Maryland Wool PoolThe 2010 national loan rate for ungraded wool is $0.40 per lb. The loan rate for graded wool is much higher and depends upon the grade (micron count) of the wool. The loan rate for mohair is $4 per lb.

Regional prices will continue to be announced through January 2010. The final date to apply for marketing assistance loans or loan deficiency payments (LDPs) for wool and mohair shorn in 2009 or unshorn pelts for lambs slaughtered in 2009 is February 1, 2010.

Producers are eligible to receive loan deficiency payments for wool and unshorn lambs. An LDP is the difference between the loan rate (currently $0.42) and loan repayment rate (currently $0.13). Thus, the current LDP for Region I ungraded shorn wool is $0.29 per lb. For unshorn lambs, the payment rate is 6.865 lbs. x the LDP rate (or $1.99 per lamb).

Producers must sign up for the LDP program at local FSA offices before giving up ownership of wool or lambs.

Read news release from USDA FSA

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