Wool LDPs Available

If you haven’t talked to your local U.S. Department of Agriculture Farm Service Agency office about getting a Loan Deficiency Payment, now is the time. LDPs are payments offered by USDA for wool producers. An Ungraded LDP is currently offered at $0.40/lb grease weight, as well as some Graded LDPs for specific micron wool.

To apply for an LDP, the producer must have beneficial interest of the wool. For those in a wool pool, when your wool joins the pool, you lose beneficial interest. For those that send their wool with their shearer and are paid on the spot, that is when you lose beneficial interest. So, be sure to apply for an LDP before sending your wool into a pool or with your shearer.

The easiest way to show how much wool you produced is with a sales document, weight ticket or core test report. However, other options are available. Find out more at www.sheepusa.org/wp-content/uploads/2023/02/LDP-Production-Evidence.pdf.

Wools ranging from 23.6 to 25.9 microns are currently eligible for a $0.96 per lb Graded LDP. For the Graded LDP, the wool will need to have a core test report showing the micron and a clean weight. Also, remember that a Graded LDP can be used for 23.6 to 25.9 micron wool in combination with an Ungraded LDP for all other wools.

Source: ASI