The deadline to request loans and loan deficiency payments (LDPs) on the 2012 wool and unshorn pelts crop year is Jan. 31. LDPs are payments made to producers who, although eligible to obtain a loan, agree to forego the loan in return for a payment on the eligible wool or unshorn pelt. The 2012 crop year national LDP rate for ungraded wool was $0.00, so although a producer may request an LDP for wool, a zero payment would be approved. For loans, the loan rate for ungraded wool in 2012 was $0.40. Beneficial interest in the wool must be retained through the life of the loan.
Wool producers can now apply for loans or LDPs for the upcoming 2013 crop year. Form CCC-633EZ must be completed and returned to a Farm Service Agency (FSA) office for the 2013 crop year prior to shearing or selling. Producers must request benefits by Jan. 31, 2014.
Further details are available by contacting an FSA office.