NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER

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1 NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER Grant Application Date Submitted Legal Name of Applicant Texas A&M University-Texas AgriLife Research EIN Name Address Dr. Ronald E. Pope 7887 US Hwy. 87 N City San Angelo State TX ZIP County Tom Green Congressional District 11 Project Title Wool Research and Education Person to be contacted about application Name Dr. Ronald E. Pope Phone Ronald.Pope@ag.tamu.edu Project Abstract ( words). Include Problem or Opportunity Wool prices over the past several years have been trending upward with prices in 2018 at all-time worldwide highs. World wool production is down to 70 year lows since 2008 according to IWTO country statistics. The US produces primarily apparel style wools with lower worldwide production of these wool types. Demand however, is increasing. All major segments of the wool textile industry report an unprecedented normal to good conditions moving forward. Demand for wool products has been supported by positive economic growth projections in major industrialized countries. Now is the time for wool producers to expand by improving the quality and quantity of wool they produce on a per head basis. ASI published a report entitled: U.S. Sheep Industry Research, Development, and Education Priorities. This report found that twenty-five percent of survey respondents identified wool production as either their primary or secondary type of operation. There is a growing market trend toward local and American grown, raised, produced and constructed apparel. The wool labs in Montana and Texas will be the facilitator of many interactions between wool growers, processors and manufacturers. Expanding avenues of domestic use are in the knitting sectors of the wool industry and include outdoor and active wear garments and socks. The goal of this proposal is to provide leadership and technical assistance to American sheep producers on wool production, preparation and marketing to help improve the quality, marketing efficiency and competitiveness of US wool both internationally and domestically. The objectives are: (1) Continue to evaluate new technology and application in wool metrology by expanding development of near infrared spectroscopy (NIRS) to regions outside of Texas for yield and AFD determination. (2) To develop, evaluate, and implement wool sampling procedures for on farm testing. (3) To provide educational outreach programs for producers, stakeholders, and end users of American wool. Montana State University and Texas A&M University are the only remaining university wool labs in the US. Funding will allow these universities to expand their research and outreach efforts to meet the national needs of wool growers and to increase the value of their product.

2 Project Objectives Objective 1) Continue to develop near infrared spectroscopy calibrations to predict lab scoured yield from side and whole fleece samples to include other US regions. Objective 2) Assist and develop wool sampling procedures for on farm ram testing. Objective 3) Provide educational outreach programs for producers and stakeholders of American wool aimed at improving wool quality and reducing contaminants and encourage the use of Code of Practice standards. Description of efforts-anticipated results Objective 1) Texas AgriLife Research - San Angelo has been evaluating the potential to use the NIRS to predict fleece yield and average fiber diameter from fleece side samples. Results from Texas wool flocks have been promising for use as a quick, accurate, and inexpensive method for growers to use in individual animal selection. Continued development with Texas wool is ongoing and the addition of conducting a study using wool from various regions of the US. Montana State University (MSU) has committed with collecting necessary samples from multiple producers for this project. Additionally, samples have been collected from MSU and U.S. Sheep Experiment Station research flocks. The design requires individual fleeces be weighed, core sample taken, and side sample obtained from each fleece. This will require project personnel to commit time and travel just to obtain the necessary samples. In addition, the growers will receive a full lab test at a reduced cost due to participation. We anticipate enough participation and samples to effectively evaluate NIRS potential. Objective 2) In 2017 the centralized ram test known as the Sonora Ram Test was discontinued. Growers are being encouraged and assisted in enrolling their flocks in the National Sheep Improvement Program. This inaugural year of on farm testing will undoubtedly require considerable time and travel to assist growers in proper wool sample collection procedures. The Bill Sims Wool and Mohair research lab will continue to objectively measure wool characteristics for producers to use in making genetic improvement in their flock. The potential to use NIRS has not been evaluated in ram test conditions. We hope that growers continue to do ram evaluation to identify superior rams. If successful, similar projects could include ewe lifetime wool production projects on stud ewe flocks. These efforts could improve enrollment in NSIP. Objective 3) San Angelo will provide the following educational programs: Shearing school Ewe lamb and Angora futurity Annual Sheep & Goat Field Day & Expo Wool judging training for teams from Texas A&M, Angelo State, & Kansas State Providing skilled shearers for all flock sizes would be beneficial. Helping youth become familiar with wool and mohair production will develop an appreciation for these products by the knowledge gained. Grower programs that speak to relevant topics and encourage and motivate adoption of techniques is vital to continued success by the same growers. Anticipated outcomes from these activities include increased adoption of Code of Practice standards and resulting improving wool quality and reducing contaminants. All the teams that utilize the Bill Sims Wool and Mohair Research Lab will have a greater knowledge and understanding of wool value that translates to a successful experience in wool judging.

3 Amount requested from NSIIC $40,065 Type of Expenditure Applicant Matching Funds Local/State/Federal Funds previously awarded for project TOTAL $40,065 Personnel list each Relationship to Project Number of Hours Rate of Compensation Total Research Associate/Graduate Student Undergraduate, TBN Student Worker ,800 Equipment Purpose Cost Number Travel Per Diem Number of Days Number of Personnel Sample collection and testing at ranches Travel-ASI and TSGRA for presentations , ,430 Other Related Expense Sub-Award MSU 20,000 Lab supplies NIR Lamp, Glassware 800 Lab Analysis of Wool samples Yield/AFD $17/test 150 2,550 Overhead Total award 7.5% 3,005 Since the applicant is a university institution it is near impossible to have matching funds that qualify under the guidelines.

4 Provide a qualitative summary, or justification for budget expenditures (200 words or less) Personnel: wages for one half-time student worker that will assist in analyzing samples for objective 1 and 2 which includes over 4,000 grower samples annually. Sample collection: On farm testing will require travel to various ranches to assist in proper wool sample collection this first year. Travel: Includes travel to TSGRA, ASI and other meetings to conduct trainings and present research results. Sub-Award: Funds for co-research project institution (Montana State University). Lab Supplies: Normal lab maintenance for project. Lab Analysis: Objective 1 allows for a discount in testing cost for participating sheep producers. This amount will only recover a small percentage of the discount. Overhead: Normal overhead for USDA funded projects is 26%. The budget includes 7.5% overhead to help defer utilities and other operating expenses. Technical Objectives 1. Determine feasibility of using NIR technology to estimate LSY and AFD from side samples that will be accurate for animal selection. 2. Evaluate wool from different regions of the U.S. in developing calibration equations. 3. Use on-ranch ram testing to obtain trait performance information that is beneficial in genetic selection. Responsiveness to NSIIC Stated Priorities (from web site) Priorities 1, 2, 3, 4 and 5 will be enhanced through funding of this proposal, which respond to the NSIIC stated priorities. In addition, the following priorities from the 2016 ASI publication U.S. Sheep Industry Research, Development, and Education Priorities will be addressed: Research Priorities for Wool Improving wool quality and quantity Research is needed in assisting wool producers to effectively use genetic selection through technology (NSIP) and cost-effective testing. Development Priorities for Wool Development and exploration of wool measurement equipment and technologies Objective measurement is the only way that wool can be accurately described and specified. Wool processes more efficiently, economically and produces superior products when it is uniform, clean and meets first-stage processor and mill standards.

5 Education Priorities for Wool Continued education - Develop continued education for wool growers aimed at improving wool quality and reducing contaminants and encourage the use of Code of Practice standards. Return on investment - Develop estimates for producers of the monetary return that can be realized with small investments in wool preparation. Prior USDA or other Federal Support NSIIC has funded grants for activities and research conducted by the wool labs. Previous and concurrent funding from NSIIC initiatives has led to leveraging of matching funds from internal competitive funding initiatives at MSU Agricultural Experiment Station and the U.S. Sheep Experiment Station in Dubois, ID. Consequently, previous and concurrent funding through NSIIC has increased scope of collaborative wool related research initiatives in TX and MT. Identification and significance of the issue being addressed U.S. sheep and wool producers rely on U.S. research facilities and researchers to effectively respond to opportunities and challenges when it comes to wool quality traits that can or should be objectively measured. With previous funding, the AgriLife and Montana labs validated the FiberLux a new, affordable instrument for measuring fiber diameter. Growers are now using the FiberLux to class wool and make selection decisions for replacement rams and ewes. Genetic tools such as NSIP and other data driven selection systems can be used for wool production quality characteristics. Having Texas and Montana wool labs provide technology for growers is critical. According to the 2016 ASI publication, half of wool buyers/processors reported the topranked quality/value of U.S. wool is that it is locally produced. Respondents reported that the origin of U.S. wool is its greatest attribute. Yet U.S. wool is not as high yielding or as bright color as other wools produced in Australia, New Zealand, and South Africa. Other positive attributes that also received high rankings include traceability, style, and fiber diameter. Wool buyers/processors also identified weaknesses in US wool. Just over half (54 percent) of respondents reported that contamination was the single-greatest quality/value weakness of US. Wool. Contaminants included paint, staining, vegetable matter, and polypropylene. Each of these weaknesses can be reduced through proper wool production, preparation, and packaging. Wool grower education was identified as an important step toward growth, but there were also areas for improvement in wool research and development. Wool buyers/processors were also asked to identify areas of new or continued research emphasis important to their business. Thirty-eight percent made a comment regarding the need for improved wool quality primarily in yield, color, and staple length. Having quick, reliable, and lower cost objective measurements associated with the main wool value determinants will allow US wool to be produced in more efficiently by increasing the quantity on a per head basis and at a higher quality level. What are the goals to be achieved with this grant funding? Improve the quality of the Texas and Montana wool clip. Initiate on farm testing for growers to include wool traits. Expand the potential of NIRS for determining AFD and Yield to other regions of the US.

6 Work Plan Task, Methodology, Individual responsible, and location where work will be done. Objective 1: Individual fleeces from participating growers will be core sampled and side samples obtained. Texas Agrilife and Montana State personnel will oversee sample collection for this project. There is already a commitment from numerous growers to participate. Both AFD and Lab Scoured Yield (LSY) will be estimated from core samples using normal lab procedures and will be correlated to results obtained from the NIRS using the greasy side sample. Spectra nm will be collected from greasy side samples calibrated to predict LSY and AFD using modified least squares regression. Growers will receive their wool results at a discounted price. Texas Agrilife and MSU will assist in core sampling all fleeces. Texas Agrilife will conduct normal lab procedures on many and NIRS testing on all samples submitted. MSU will do normal lab testing on many of the core samples in their lab. Objective 2: On farm testing in Texas will be carried out by Texas Agrilife personnel. They will coordinate with growers on fleece collection for core sampling and all lab work. Objective 3: Both Texas Agrilife and MSU will conduct outreach to growers through individual fleece testing, attending and presenting at industry meetings and conventions, assist with youth programs through university level, and work with individual growers. Related Research or other efforts in this area of which you are aware, including an analysis of the competitive landscape if the award is for a commercial application. Both wool labs have been involved with ram test programs. Although Texas has discontinued its Ram Test it will continue to test fleeces for the Dakota Ram Test. Montana has worked with state sheep producers in selection and wool classing using the OFDA2000 over a decade. Texas and Montana wool labs support other research projects that have wool characteristics as a production parameter. Potential Post application in this area of development of research or commercial endeavor Research that provides confidence in the use of instrumentation by the wool industry will increase grower adoption. By objectively measuring wool traits that are of economic importance and that can be selected for in a genetic program (NSIP) can improve US wool quality and economic return to the individual grower.

7 Background and rationale (citation of publications if any) Objective wool measurement has advanced better wool production through breeding, feeding, and management. These services are provided by the MSU and TX A&M Bill Simms Wool and Mohair Labs and resulting data has been incorporated into NSIP, which has assisted producers in selecting more productive and profitable breeding stock for the last several decades. With previous funding the AgriLife and Montana Labs validated the FiberLux a new affordable instrument for measuring fiber diameter. Growers are now using the FibreLux to class wool and make selection decisions for replacement rams and ewes. Fleece and fiber metrology traits are generally among the most heritable in sheep production, and producers can still make appreciable genetic gains through phenotypic selection (i.e. without being enrolled in NSIP). Therefore, the data and outreach provided by these university wool labs is essential to the continued improvement of the U.S. sheep and wool industries. Walker, J. W., W. Stewart, R. Pope, S. Spear, M. Ebert, and T. Murphy Evaluation of mean fiber diameter measurements by FibreLux micron meter and OFDA2000 in Texas and Intermountain west wool. Small Ruminant Research 159: C.J Lupton. ASAS CENTENNIAL PAPER: Impacts of animal science research on United States sheep production and predictions for the future. J. Animal Science : Safari, E., N. M. Fogarty, and A. R. Gilmour A review of genetic parameter estimates for wool, growth, meat and reproduction traits in sheep. Liv. Prod. Sci. 92: Relationship to industry, including technical, economic and social benefit As the only two remaining land-grant university wool labs in the country, MSU and the Texas A&M Bill Sims Wool and Mohair labs work closely to coordinate research and education activities. A strong collaborative vision together and with ASI Wool Council allows both labs to maximize the output on limited resources. Recent examples include FiberLux validation, and kemp and medullation research. Additionally, these labs coordinate and collaborate with regional wool warehouses and commercial labs. Continued support and funding from NSIIC allows both labs to maintain vibrant research and outreach that adds value to the sheep and wool industries. Cost benefit analysis Research and testing activities in both labs allow producers to place continued emphasis on selection, classing and grading, and other wool harvesting preparation techniques. Montana State University s extension program in tandem with the wool lab have contributed to MT maintaining the most valuable wool clip in the U.S. (USDA-NASS, 2015) Texas traditionally has produced the finest wool in the US that is sought by both domestic and foreign customers.

8 Policy or decisions affected by results Immediate decision-making affected is the research and education initiatives of the MSU and TX A&M Wool Labs. Future funds allocated to wool related research and education will in part be guided by the outcome of the proposed project. Improvement in wool selection strategies, wool harvesting and preparation, wool analytical tools and economic modeling data will be influenced by having a more accurate estimation of the U.S. wool clip. Bio Sketch of each principal person Dr. John Walker - Professor and Center Director of Research at the Texas A&M AgriLife Research and Extension Center in San Angelo, Texas. Responsibilities include providing leadership to a multi-disciplinary team of scientists that develop new technologies for increasing the efficiency and sustainability of range livestock and wildlife production. Dr. Ronald Pope - Research scientist at the Texas A&M AgriLife Research and Extension Center in San Angelo, Texas. Responsibilities include oversight of the Bill Sims Wool and Mohair Research Lab personnel, services, and activities. Dr. Pope s contribution to this project will be data collection and fiber measurement for the projects. Dr. Thomas Murphy - Assistant Professor of Sheep Production in the Department of Animal and Range Sciences at Montana State University in Bozeman, Montana. Dr. Murphy s responsibilities will be to assist in the training of MSU wool lab personnel, data collection, and dissemination of the project results to producers and industry representatives. Financial Feasibility (i.e., Is the budget proportionate to the endeavor, and will the outcome have a financial benefit to the industry in the near term or will additional funding be required?) Yes. Maintaining wool labs with the capability to support the U.S. wool industry will require continuing funding. Contamination research, development of NIR techniques, and evaluating new instrumentation are important to growers in improving wool quality and quantity. Research in these areas will expand the knowledge and understanding that will benefit all segments of the U.S. wool industry. Business Soundness (i.e., Are project participants qualified and experienced) Yes. This project is a short-term program that will be overseen by multiple industry professionals. We feel confident that there are adequate resources either in the grant or contributed by our entities to complete the project. Management Ability (i.e., are project participants qualified and experienced) Yes. Texas A&M AgriLife Research and Extension and MSU project members are skilled professionals at managing project such as the program proposed.

10 Return this application to: If you prefer to send hard copies: Steve Lee, Executive Director and Program Manager National Sheep Industry Improvement Center Box 646 Rockland, Maine For FedEx or Other Delivery Services: 32 Gleason St Thomaston, ME Download form to your computer, complete it and save it to your computer prior to submitting to the Sheep Center. Additional Information for Applicants: Matching funds: In order to leverage funds available, NSIIC will assign 10 points to any application in which a match of cash or in-kind labor is contributed. In-kind matches may only account for 50% of the total match. Additionally, salaries or other expenditures that will be made by the applicant or the applicant's employer, irrespective of a potential grant award, cannot be used as a match. A subtraction of 10 points will be made from the total score of any application that includes an overhead budget of more than 7.5% of the total grant request. Request for capital expenditures are discouraged, and may not exceed 20% of the total budget in any event. Please justify any requested funding for equipment or other capital expenditures. Notification to Applicants: Applicants will be notified via that their application has been received within a day or two of receipt: After Review, all applicants will be sent a notice to the of the person listed as the contact person on the application. That notice will be one of three possible responses: 1)Your application did not score high enough for funding consideration 2) Your application scored high enough for funding as submitted 3) Your application scored high enough for funding but with modifications needed in the budget. You will be given the opportunity to make those modifications for funding or you may reject the modifications in which case the grant funding offer will be withdrawn. Instruction will be included in the notice. Please note that the Review Committee will not provide feedback to applicants however in some cases the Board may elect to encourage re submission with certain specific changes (i.e. those the Board feels were good causes but poor application preparation or those with a good idea but not sustainable as presented). In some instances the Board may want to provide a written statement, with the understanding that no further discussion is available. Please note that proposals submitted more than twice will not be evaluated. The NSIIC Board request that applicants refrain from communicating with Board Members specifically about the project (i.e. Lobbying your project). Under no circumstances will applications arriving past the deadline for submission be considered.

NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER. Project Abstract ( words) Include. Grant Application Hōkū Nui Farms LLC EIN

NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER Grant Application Date Submitted 9/15/17 Legal Name of Applicant Hōkū Nui Farms LLC EIN 82-0665303 Name Address Andrea Dean / Hōkū Nui Farms LLC P.O. Box 1355