Ungraded Wool LDP Rate Falls

March 30, 2007 - Wool Loan Deficiency Payment (LDP) rates for ungraded wool fell this week to $0.18 per pound greasy from $0.23 per pound greasy last week. With the drop in the ungraded LDP rate, producers who have wools core tested at 18.6 microns or less, as well as those graded at 26 micron or higher, may find the graded LDP favorable over the ungraded rates.

"Wool with at least a 50-percent yield may well pay better on the graded program," according to Peter Orwick, American Sheep Industry Association executive director. "The graded program requires a core test and is computed on a clean basis."

FSA offices have the weekly posting of LDP rates for both graded and ungraded wool. Test information is not required for the ungraded LDP rate.

To be eligible to apply for an LDP, the wool must be sheared and the producer must retain beneficial interest in the wool.

The LDP rate tables can be accessed at www.fsa.usda.gov/FSA/webapp?area=home&subject=prsu&topic=ldp.
Staff contact: Peter Orwick, ext. 33

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