Wool and mohair loan LDP deadline is Jan. 31 years ago
By WILLIAM J. HARMON
Executive Director
Marion County FSA
Wool and mohair producers are eligible to apply for non-recourse marketing assistance loans and loan deficiency payments (LDP) from the Farm Service Agency (FSA), but they must apply by Jan. 31 for the 2005 year crop.
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. This final deadline also applies to LDPs for unshorn pelts from unshorn lambs slaughtered in 2005.
Producers placing wool and mohair under FSA loan receive an established loan rate. National per pound loan rates are set at $1 for graded wool, $.40 for ungraded wool, and $4.20 for mohair.
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. The wool or mohair must be produced and shorn from live animals of domestic origin in the United States and be of merchantable quality. In addition, 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 the date an LDP payment request is made.
For unshorn pelts, the producer must sell the unshorn lamb for immediate slaughter or slaughter the unshorn lamb for personal use.
Producers with 2005 and future year production should file FSA form CCC-633EZ Page 1 at their local FSA county office before they lose any beneficial interest in the crop and then follow-up by filing a CCC-633EZ Page 2 form to actually apply for the LDP payment before the Jan. 31 deadline, even though this may be after they have sold or otherwise lost beneficial interest in their production.
