Wool MAL and LDP Available
March 28, 2014
 

Marketing Assistance Loans (MAL) or Loan Deficiency Payments (LDP) for 2014 wool clips are available. The 2014 crop year for wool and unshorn pelts began on Jan. 1, 2014, and ends on Dec. 31, 2014.

The 2014 Farm Bill retained the loan rate for graded wool at $1.15 per pound. The national loan rate for ungraded wool is $.40 per pound.

Marketing loans are nine-month loans that provide interim financing for eligible producers, allowing them to store their products in order to market those products when prices are optimal.

An LDP is the difference between the loan rate at a given location and the announced market price for the applicable commodity. LDPs are announced weekly in the American Sheep Industry Association (ASI) newsletter.

ASI Executive Director Peter Orwick relayed, "The wool program is geared to assist growers in the event of a market collapses. The strength in the wool prices since 2010 has meant very limited use of the LDP but we are pleased the program is available for risk management. It is always preferable to have strong wool prices and not need the loans."

LDP benefits are available through local Farm Service Agency Service Centers.