March 17, 2000

USDA has announced steps it will take to aid the U.S. sheep industry. The plan makes available $50 million during the first year and an additional $50 million during the second and third years for production improvements, market promotion, animal health and domestic purchases.

The first effort is a $15 million purchase over the next three years of lamb for federal food programs. The purchase announcement follows on the Administration’s commitment to support domestic sheep/lamb producers.

The Agriculture Marketing Service will purchase lamb roasts for distribution through food banks and other charitable institutions participating in federal food programs.

Other parts of the plan include the following:

• $30 million ($10 million per year) to small and medium-sized producers in direct cash payments tied to production practices and quality incentives that improve competitiveness.

• In years two and three, $25 million is provided for guaranteed loans to help fund new and improved building facilities as well as processing and packaging system upgrades.

• An additional $10 million is available for guaranteed loans to help farmers cover flock and farm improvements and operating expenses.

• $10 million in the first year assisting producers to eradicate scrapie from domestic sheep populations. An additional $5 million will be requested the second year.

• $5 million of lamb each year during the three year program.

• $4 million in efforts to increase demand and improve the competitive position of domestic lamb.