Wool and Mohair Program
The One Big Beautiful Bill Act (Pub. L. 119-21) authorizes nonrecourse marketing assistance loans (MALs) and loan deficiency payments (LDPs) for wool to eligible producers who produce and shear wool and mohair for the 2026 through 2031 crop years. The LDP program is also available to eligible producers of nongraded wool in the form of unshorn pelts.
MALs and LDPs are administered by the Farm Service Agency (FSA) on behalf of the Commodity Credit Corporation (CCC).
About the Program
Wool and Mohair MALs can be redeemed by repayment or settled with the Commodity Credit Corporation (CCC) upon maturity.
Under certain circumstances, producers may repay at less than the loan rate (principal) plus accrued interest and other charges or redeem with a commodity certificate, as applicable.
Alternatively, LDP provisions specify that in lieu of securing a MAL, producers may elect to receive an LDP. An LDP is the difference the producer would have received if a loan was repaid at the lower market price, a direct benefit that does not need to be repaid.
Contact your local USDA Service center to learn more about wool and mohair MAL and LDP provisions before you lose beneficial interest, or control and title, in the crop.
Program Availability
MALs and LDPs are available for shorn wool and mohair beginning on January 1, for wool and mohair sheared that year. LDPs are available for unshorn pelts beginning January 1, also.
Final Loan /LDP Availability Date for Wool and Mohair
The final wool and mohair MAL/LDP availability date is January 31 of the calendar year after the calendar year the wool and mohair is shorn. The same date applies to unshorn pelt LDPs.
Loan Rates
Here are the Loan rates:
Adjusted Gross Income
For the 2026 though 2031 crop years, producers or legal entities whose average adjusted gross income (AGI) exceeds $900,000, are not eligible for marketing loan gains and LDP payments; but are eligible for MALs that must be repaid at principal plus interest exchanged with a commodity certificate if the lower alternative repayment rate is below the established loan rate.
Payment Limitations
LDPs and marketing loan gains available for crop years 2026 through 2031 are not subject to payment limitation, cash rent tenant, or actively engaged in farming provisions.