Understanding the LDP Program for Lamb and Wool Producers

The Berks Sheep and Wool Growers will host a nongraded wool pool on October 28th and 29th in Chester and Berks Counties. However, producers may find that the price is so low they cannot justify the trip to the wool pool. A USDA wool and lamb program is available again this year that will pay $1.15/lb for graded wool and $0.40/lb for nongraded wool on top of the price you receive at the pool. It also includes mohair and pelts. However, you must register for the Loan Deficiency Payment (LDP) before selling your wool or lambs.

If you register after the wool or lambs are sold, you will be ineligible for the payment. Your local Farm Service Agency (FSA) handles the enrollment and payment of the LDP. If you want to sell your wool at any wool pool, you should contact your local Farm Service Agency before the pool to become eligible for these payments.

There is a form that must be completed to be eligible, but the information requested is minimal for those selling wool or lambs. Some example questions include:

• How many animals are in your herd/flock?
• How many animals were sheared/slaughtered?
• When were the animals sheared/slaughtered?
• Have you owned the animals for more than 30 days?

You must also produce your sales receipt with the application. Although this is called a loan deficiency payment, it is not a loan but acts more like a price support system for those receiving prices well below the value of the wool. If you would like more information, contact your local Farm Service Agency (FSA). If you do not have local FSA contact information, please go to the USDA Farm Service Agency Pennsylvania Counties

For further information on the Berks/Chester Wool Pool, please call Roger Bowman at 610-562-4875 or Cheryl Fairbairn at 610-696-3500.