Skip repetitive navigation links.
United States Department of AgricultureFarm Services AgencyFarm Service Agency
Go to FSA Home Go to FSA Home Go to About FSA Go to State Offices Go to Newsroom Go to Online Services Go to Forms Go to Help Go to Contact Us Go to Spanish Languages
Search FSA
Go To Search Tips
Browse by Audience
Agribusiness
Cooperatives
Congress
FSA Employees
Landowners
Conservationists
Lenders and Banks
Media
Parents and Caregivers
Producers
Researchers
Academic Community
Browse by Subject
Go to Aerial Photography
Go to ARC/PLC Program
Go to Commodity Operations
Go to Conservation Programs
Go to Direct and Counter-Cyclical Program/ACRE
Go to Disaster Assistance Programs
Go to Economic and Policy Analysis
Go to Energy Programs
Go to Environmental and Cultural Resource Compliance
Go to Farm Loan Programs
Go to Financial Management Information
Go to Laws and Regulations
Go to Modernize and Innovate the Delivery of Agricultural Systems
Go to Outreach and Education
Go to Payment Eligibility
Go to Price Support
Go to Tobacco
Price Support
Wool Marketing Assistance Loan and Loan Deficiency Payment Program

 
Overview

 
The Agricultural Act of 2014 (2014 Farm Bill) authorizes nonrecourse marketing assistance loans (MALs) and loan deficiency payments (LDPs) for wool to eligible producers who produce and shear wool and mohair for the 2014 through 2018 crop years. The LDP program is also available to eligible producers of nongraded wool in the form of unshorn pelts.
Nonrecourse MALs and LDPs are administered by the Farm Service Agency (FSA) on behalf of the Commodity Credit Corporation (CCC).

 
See the fact sheet Nonrecourse Marketing Assistance Loans and Loan Deficiency Payments for general information about MALs and LDPs.

 
Payment Limitations

 
For the 2014-2018 crop years, there are payment limitations on any benefit associated with the MAL or LDP programs. The total amount of payments received for all covered commodities except peanuts, directly or indirectly, by a person or legal entity (except joint ventures or general partnerships) for Price Loss Coverage, Agricultural Risk Coverage, marketing loan gains and LDPs is limited to no more than $125,000 annually. Producers exceed the limit are still eligible for MALs but must repay at principal plus interest. Peanut producers have a separate $125,000 payment limit for benefits received from the same programs.
See the Payment Limitation – 2014-2018 Fact Sheet for additional information for payment limitations for marketing loan gains and LDPs.

 
Adjusted Gross Income

 
For the 2014-2018 crop years, producers or legal entities whose average adjusted gross income (AGI) exceeds $900,000, are not eligible for marketing loan gains and LDP payments; but are eligible for MALs that must be repaid at principal plus interest.

 
Loan Rates
_____________________________________________________
Table 1 - The 2014 Farm Bill set national loan rates at the levels shown in the table below.

 
Commodity
2014-18 Loan Rate/pound
Graded Wool
$1.15
Ungraded Wool
$0.40
Mohair
$4.20

 
Table 2 – Loan rates applicable to 2014 crop year eligible mohair and wool.

 
Commodity
Micron
Loan Rate/pound All Regions
Graded (Clean) wool
<18.6
$3.88
18.6 – 19.5
$3.38
19.6 – 20.5
$2.94
20.6 – 22.0
$2.72
22.1 – 23.5
$2.56
23.6 – 25.9
$2.33
26.0 – 28.9
$1.78
29.0 and over
$1.38
Nongraded (Greasy) wool
$0.40
Mohair
$4.20

 

 
Program Availability

 
MALs and LDPs are available for shorn wool and mohair beginning on January 1, for wool and mohair sheared that year. LDPs are available for unshorn pelts beginning January 1, also.

 

 
Final Loan/LDP Availability Date for Wool and Mohair

 
The final wool and mohair MAL/LDP availability date is January 31 of the calendar year after the calendar year the wool and mohair is shorn. The same date is \applies to unshorn pelt LDPs.

 

 
Handbook

 

 
8-LP Marketing Assistance Loans and Loan Deficiency Payments for 2008 and Subsequent Crop Years – This handbook, specifically in Part 15, provides general instructions and information for administrating loans and LDPs for wool and mohair.

 

 
Related Topics
Bullet Wool and Mohair Loans/LDP Program
Bullet Peanut Program
Bullet Pulse Crop Program
Bullet Cotton - Rice Programs
Bullet Honey Loan Program
I Want To

 

 

 
STAY CONNECTED:
twitter FaceBook widget Ask FSA Fence Post RSS YouTube

Media Help
 To view PDF files you must have Adobe Acrobat Reader installed on your computer.

To view Flash files you must have Adobe Flash Player installed on your computer.


Last Modified: 07/24/14 10:59:47 AM


FSA Home | USDA.gov | Common Questions | Site Map | Policies and Links
FOIA | Accessibility Statement | Privacy Policy | Nondiscrimination Statement | Information Quality | USA.gov | White House