40-Cent Wool LDP Currently Available
March 4, 2021
With shearing beginning in parts of the country and ramping up soon around the United States and after a difficult year for the industry, the U.S. Department of Agriculture’s Marketing Assistance Loan and Loan Deficiency Payment programs could provide welcome assistance.
Now is a good time for wool producers to sign up with their local Farm Service Agency office for these programs. A grower must maintain “beneficial interest” before selling, however, once a grower signs up and provides evidence or estimate of wool production, the grower may choose a day to sell his or her wool at an advantageous time.
Currently, the ungraded LDP program – which was used by most producers in 2020 – offers a 40-cent LDP (per pound grease). This has been the going rate for most of 2021. This week, graded wools between 23.6 and 25.9 micron are also eligible for a 40-cent (per pound clean) LDP. Current rates are posted on the ASI website each Tuesday afternoon.