Ungraded wool producers in Pecos and Terrell Counties may be eligible for loan deficiency payments (LDPs) from the U.S. Department of Agriculture (USDA) Farm Service Agency (FSA), which help producers under certain market conditions.
“In the current marketing environment for ungraded wool, producers are encouraged to contact our office to learn more about price support programs so that they can make the best choice for their farming operations,” said Carla Spencer, Acting County Executive Director for Pecos and Terrell Counties.
Marketing assistance loans (MALs) and LDPs are marketing tools available to producers beginning upon shearing. MALs help producers meet cash flow needs without selling commodities when market prices are at harvest-time lows.
Producers who are eligible for marketing loans, but choose to forgo the loan, are eligible for LDPs if the posted county price falls below the county loan rate. Producers also can purchase a commodity certificate that may be exchanged for the outstanding loan collateral. Producers can check their daily LDP rates online at fsa.usda.gov.
LDPs are no longer subject to payment limitations, actively engaged in farming and cash-rent tenant rules.
For a commodity to be eligible for a loan, LDP, or certificate, the producer must have beneficial interest in the commodity, defined as having title, possession and control of the commodity, and responsible for loss of or damage to the commodity. All related application forms must be completed at the local FSA office prior to loss of beneficial interest. Other eligibility requirements may apply; consult your local FSA office for more information.
Marketing assistance loans are available for the following commodities: wheat, corn, grain sorghum, barley, oats, upland cotton, extra-long staple cotton, long grain rice, medium grain rice, soybeans and other oilseeds (including sunflower seed, rapeseed, canola, safflower, flaxseed, mustard seed, crambe and sesame seed), dry peas, lentils, small chickpeas, large chickpeas, graded and non-graded wool, mohair, unshorn pelts, honey and peanuts.
For more information, visit fsa.usda.gov/pricesupport. To find your local USDA service center, visit farmers.gov/service-locator.