Wool Loan Deficiency Payment (LDP) rates for ungraded wool rose this week to $0.29 per pound greasy from $0.16 per pound greasy last week. This rise in the rate may find the ungraded LDP favorable over the graded rates.
"This is the highest rate that I can recall in the six years of the wool LDP program," stated Peter Orwick, executive director, American Sheep Industry Association. "The market is obviously slower right now so the program is working as it should."
Farm Service Agency offices have the weekly posting of LDP rates for both graded and ungraded wool. To be eligible to apply for a 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.