Wool Marketing Assistance Loan and Loan Deficiency Payment Program

Wool Marketing Assistance Loan and Loan Deficiency Payment Program


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).

Read 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.

Read 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.

Commodity2014-18 Loan Rate/pound
Graded Wool$1.15
Ungraded Wool$0.40

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

CommodityMicronLoan Rate/pound All Regions

Graded (Clean) wool

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.


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.