USDA Simplifies Loan Wool Rates

USDA Simplifies Loan Wool Rates

One set of national rates replaces three regional wool rates.

Mohair and wool loan rates are simpler for 2010 than they have been in the past.

The USDA Commodity Credit Corp. is reporting to one set of national loan rates rather than three regional rates. Grader loan rates are still based on fiber diameter and the national ungraded loan rate is set at 40 cents per pound.

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 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.

TAGS: USDA
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