Graded LDPs Higher than Ungrade

October 31, 2008 - This week, it became financially advantageous for wool growers to consider the use of the graded wool Loan Deficiency Payment (LDP) rather than using the ungraded LDP, which most growers have been using since the inception of the program. The graded LDPs are now higher in all wool categories than the ungraded LDPs.

Depending on fiber diameter, the graded LDPs range from 48 cents up to 50 cents per pound clean while the program is paying out 16 cents per pound greasy for ungraded wool. Graded loan provisions require a core test to show the micron and yield of the wool. The ungraded wool LDP rate has not changed since mid-July.

Growers that have not yet sold this year's wool or are now shearing should contact the local U.S. Department of Agriculture's Farm Service Agency office for the LDP application and current rates.

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