Wool, mohair producers may apply for assistance loans, loan deficiency payments

Wool and mohair producers are eligible to apply for nonrecourse marketing assistance loans and loan deficiency payments from the Farm Service Agency, but they must apply by Jan. 31 for their 2006 year crop.

Producers have until Jan. 31 of the year following the year in which the wool or mohair was sheared to apply for a nine-month marketing assistance loan or loan deficiency payment.

This final deadline also applies to LDP’s for unshorn pelts from unshorn lambs slaughtered in 2006. Producers placing their wool and mohair under FSA loan receive an established loan rate. National per-pound loan rates are set at $1 for graded wool, $0.40 for ungraded wool and $4.20 for mohair.

Unshorn pelts are eligible for loan deficiency payment at the ungraded wool LDP rate. When filing an LDP application, producers must have a good estimate of the pounds they want to certify. The wool or mohair must be produced and shorn from live animals of domestic origin in the United States and be of merchantable quality.

In addition, producers must have owned the sheep or goats for at least 30 days before shearing, and they must retain beneficial interest from the time of shearing through the date an LDP payment request is made.

For unshorn pelts, the producer must sell the unshorn lamb for immediate slaughter or slaughter the unshorn lamb for personal use.

Producers with 2006 and future year production should file FSA form CCC-633EZ Page 1 at their local FSA county office before they lose any beneficial interest in the crop and then followup by filing a CCC-633EZ Page 2 form to actually apply for the LDP payment before the Jan. 31 deadline, even though this may be after they have sold or otherwise lost beneficial interest in their production.

Bill Harmon is executive director of the Marion FSA office in Marion.

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