Sheep, Lamb Assistance Package Totals $100 million

January 14, 2000

Agriculture Secretary Dan Glickman says $100 million over three years will be spent to help sheep and lamb producers. The long-awaited program is aimed at shoring up an industry "threatened" by low-priced imported lamb meat.

Last February, the U.S. International Trade Commission ruled 6-0 that a recent incrase in imported lamb meat caused the threat of injury to U.S. producers. Glickman said the assistance package will help U.S. sheep and lamb producers achieve "sustained competitiveness while respecting international trade obligations."

The program makes $50 million available in the first year and another $50 million during the second and third years for production improvements, market promotion, animal health and domestic purchases.

Small and medium sized operations will receive $30 million over three years in direct cash payments tied to production practices and quality incentives that improve competitiveness. In the first year, $15 million will go to guaranteed loans to help fund new and improved building facilities and processing and packaging system upgrades. Another $10 million over two years will go for guaranteed loans.

In the two years, $10 million will go to guaranteed loans to help farmers improve flocks and for operating expenses. USDA will purchase up to $5 million of lamb meat each year during the three-year program. In the first year, USDA will invest $4 million to increase demand and improve the competitive position of domestic lamb.