Wool and Mohair Program: Need for Program Still in Question

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Report Type	Reports and Testimonies
Report Date	March 6, 1990
Report No.	RCED-90-51
Subject	Administrative costs Agricultural production Clothing industry Commodity marketing Farm income stabilization programs Farm subsidies Livestock products Strategic materials Tariffs USDA Wool and Mohair Program

Summary:

Pursuant to a congressional request, GAO assessed the Department of Agriculture's (USDA) wool and mohair program.

GAO found that: (1) USDA made $665 million in wool payments from 1981 through 1988; (2) wool production declined from 110 million pounds in 1981 to 89 million pounds in 1988; (3) from 1977 through 1983, payments boosted wool production by 18 percent; (4) industry representatives have contended that the payments have improved wool quality and production and stabilized the domestic wool industry; (5) military purchases account for 8 percent of the annual domestic wool production, but could substantially decline as new synthetic materials are used; (6) from 1981 through 1988, mohair producers received $173 million in program payments; and (7) in 1988 alone, mohair payments represented $47.1 million, or 53 percent, of total program payments.

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Wool and Mohair Program: Need for Program Still in Question