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Deadline nears for wool farm loans

The Farm Service Agency (FSA) reminds producers that the final date to request a 2009 crop Marketing Assistance Loans (MAL) or Loan Deficiency Payments (LDP) for wool, mohair, and/or unshorn pelts from lambs slaughtered in 2009 is Monday, February 1, 2010.

The 2010 crop year for wool, mohair and unshorn pelts began January 1 and ends December 31, 2010. Unshorn pelts are only eligible for LDPs.

The 2008 Farm Bill raised the loan rate for graded wool from $1 per pound to $1.15 per pound during crop years 2010 through 2012.

The following loan rates for 2010 through 2012 crop years are: Crop 2010 through 2012 crop year loan rates; graded wool $1.15 per pound; ungraded wool $0.40 per pound; mohair $4.20 per pound.

Marketing loans are 9-month loans that provide interim financing for eligible producers, allowing them to store their crops at harvest (when prices tend to be low), then market their crops when prices rise.

An LDP is the difference between the loan rate at a given location and the announced market price for the applicable commodity.

Eligible producers are able to request electronic Loan Deficiency Payments (eLDP) online and in most cases receive approval and payment by direct deposit within 48 hours. The electronic service is offered as an additional option to producers requesting an LDP. LDP benefits are still available at local FSA Service Centers.