October 3, 2003
The 2002 Farm Bill authorized for the first time the availability of the Loan Deficiency Payment (LDP) program for the wool and unshorn pelt industries as secured by the American Sheep Industry Association (ASI). To date, wool producers have collected $12.1 million dollars under this program.
During the 2002 crop year, nearly 18,500 producers applied for an LDP, placing 36.5 million pounds of wool into the program. Wool payments were more than $6.6 million. A total of 5.8 million pounds of unshorn pelts was also enrolled into the program by 1,909 producers with a value of nearly $1.1 million.
For the current crop year, which ran through Sept. 30, 2003, a total of 10,690 producers placed 22 million pounds of wool in the program for payments of more than $4.2 million. A total of 1,006 pelt producers have also applied for an LDP on 1.3 million pounds of product with payments of $216,154.
According to Peter Orwick, executive director of the American Sheep Industry Association (ASI), ?The additional $12.1 million into the pockets of the growers from the LDP program has been extremely beneficial to the industry. Even with the program?s late start for the 2002 crop year, producers were able to work with their local FSA office to make application.?
Be sure to watch for your November edition of Sheep Industry News for a state-by-state breakdown of wool and pelt LDP payments.
Staff contact: Peter Orwick, ext. 33