Wool Growers Should Monitor MAL/LDP Rates
May 13, 2020
Wool producers are encouraged once again to take a look at the wool Marketing Assistance Loan and Loan Deficiency Program offered through their local Farm Service Agency office.
Rates for ungraded, grease wool changed dramatically last week, leading to the availability of a 30 cent per pound benefit. Rates are also favorable in some fine wool ranges, on a clean wool basis, as well as for the coarsest of American wools. The American Sheep Industry Association has been working with the industry and the U.S. Department of Agriculture to see that rates adequately reflect the current wool market. That interaction – along with increased wool price reporting – has led to the most updated rate changes in years.
There is also and unshorn pelt LDP payment, which is 6.865 lbs. multiplied by the LDP rate (30 cents) and comes out to $2.0595 per head this week.
Rates change each Tuesday and can be found on the ASI website, along with a PowerPoint presentation drafted by sheep and wool consultant and PM Ranch Owner Bob Padula that demonstrates various examples to assist growers in looking at options that best suit their operations.
Click Here for more information.
For those growers interested in a loan, the Market Assistance Loan program is now available for up to 12 months – usually it is only available for nine months. More information on all these programs can be found on the FSA Fact Sheet https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/2016/mal_ldp_2016.pdf.
ASI Deputy Director Rita Samuelson reminds producers that this program is designed to step in during market crashes and encourages those that haven’t sold their 2020 clip to go into their local FSA office and complete forms to prepare for the date they want to apply for LDP. This is also a good time to ask about program updates and specifics.