The U.S. Department of Agriculture's (USDA) Commodity Credit Corporation this week announced national loan rates for 2010 wool and mohair. USDA has simplified the program for 2010 by reporting to one set of national loan rates rather than the three regional rates as in the past. Graded loan rates are still based on fiber diameter and the national ungraded loan rate is set at 40 cents per pound. Loan rates are used as the basis for commodity loans and loan deficiency payments.
The American Sheep Industry Association (ASI) led the charge to implement an increase in the wool loan program in the 2008 Farm Bill. Wool was the only commodity that was successful in procuring an increase in its base loan rate for graded wool from $1 to $1.15.
"The increase in the loan rates will provide a greater opportunity for more producers to participate in the graded Loan Deficiency Program (LDP)," commented Peter Orwick, ASI executive director.
The graded wool loan rates effective on Jan. 1, 2010, are: wools less than 18.6 micron, $3.88; 18.6 to 19.5 micron, $3.38; 19.6 to 20.5 micron, $2.94; 20.6 to 22 micron, $2.72; 22.1 to 23.5 micron, $2.56; 23.6 to 25.9 micron, $2.33; 26 to 28.9 micron, $1.78; and 29 micron and over, $1.38. These loan rates are on a clean basis.
The final date to request a marketing assistance loan or LDP for wool and mohair shorn in 2009 and unshorn pelts from lambs slaughtered in 2009 is Monday, Feb. 1, 2010.