Farm Service Agency deadlines approaching
Wool and mohair producers are reminded that the final date to apply for nonrecourse marketing assistance loans or loan deficiency payments (LDP) from the USDA Farm Service Agency is Jan. 31, 2011, for their 2010 wool and mohair.
“Producers have until Jan. 31 of the year following the year in which the wool or mohair was sheared to apply for a nine-month marketing assistance loan or loan deficiency payment,” announced Adrian J. Polansky, state executive director of USDA’s Farm Service Agency in Kansas. This final deadline also applies to LDPs for unshorn pelts from unshorn lambs slaughtered in 2010.
Producers placing their wool and mohair under loan with FSA receive an established loan rate. National per pound loan rates are set at $1 for graded wool, $0.40 for ungraded wool and $4.20 for mohair. In addition, unshorn pelts are eligible for loan deficiency payment at the ungraded wool LDP rate. When filing an LDP application, producers must have a good estimate of the pounds they want to certify. Polansky emphasized the wool or mohair must be produced and shorn from live animals of domestic origin in the United States and be of merchantable quality.
“Producers can forego putting their wool and mohair under loan and receive a loan deficiency payment instead. In order to qualify for loans or LDPs, producers must meet program eligibility requirements,” Polansky said. “Producers must have owned the sheep or goats for at least 30 days before shearing, and they must retain beneficial interest from the time of shearing through either repayment of the loan or, in the case of an LDP, the date the payment is requested. Also for unshorn pelts, the producer must sell the unshorn lamb for immediate slaughter or slaughter the unshorn lamb for personal use.”
Producers that do not retain the wool or mohair on the farm when sheared may lose beneficial interest and should have filed a form CCC-633EZ Page 1 before shearing. Producers must file a CCC-633EZ Page 1 before they lose beneficial interest in the commodity and then file a CCC-633EZ Page 4 to apply for the LDP payment before the Jan. 31 deadline.
Producers should contact the local FSA office at the USDA Service Center for more information.