November 10, 2006
November 10, 2006 - The Loan Deficiency Payment (LDP) rate for ungraded wool prices jumped to $0.26 per lb. greasy this week. This is a four cents per lb. increase over last weeks rate. The ungraded LDP rate has lingered in the $.022 to $0.23 per lb. range for a large portion of 2006.
"This is the highest rate we have seen on ungraded wool since the inception of the program," commented Peter Orwick, executive director for the American Sheep Industry Association (ASI).
Some producers may still be able to take advantage of this spike in the LDP rate. Wool shorn in 2006 that has not been sold nor had an LDP or marketing loan applied to it is eligible for the program. Producers who have maintained beneficial interest in this year's wool clip have until Jan. 31, 2007, to make application for all wool shorn in calendar year 2006.
"Producers who utilize a wool warehouse or wool pool are reminded that the wool does not need to be delivered by the January 31 deadline. Production can be estimated for the application of the LDP," stated Bob Padula, wool consultant for ASI.
The introduction of the CCC-633 EZ form in February of this year has made it easier for producers to indicate their intention to receive an LDP benefit later in the year. However, it is necessary to complete the portion of the form indicating intent before losing beneficial interest in the commodity. Staff contact: Peter Orwick, ext. 33