National Sheep Industry Improvement Center (NSIIC)

The National Sheep Industry Improvement Center (NSIIC) is a USDA-chartered center established under the Agricultural Marketing Act of 1946 (7 U.S.C. §§ 1621–1627) to strengthen U.S. sheep and goat production, marketing, and processing through competitive grants and strategic partnerships. Unlike commodity checkoff programs (which are funded by mandatory per-unit producer assessments), NSIIC operates through an NSIIC Revolving Fund held in the U.S. Treasury — funded by congressional appropriations and administered without annual fiscal year restrictions. The Center is governed by a Board of Directors drawn from nominations submitted by national sheep and goat industry organizations, and operates under oversight of the USDA's Agricultural Marketing Service (AMS). Implementing regulations are at 7 CFR Part 63.

Current Rule (2026)

What This Rule Does

The NSIIC makes grants to eligible entities — public, private, or cooperative organizations working to improve the U.S. sheep or goat industries — to fund research, marketing innovation, processing improvements, producer education, and industry development projects. Grant awards are made from the NSIIC Revolving Fund according to a required strategic plan that the Board develops and updates. The Center can also partner with federal, state, or private entities to leverage its grant funding for broader effect.

Part 63 establishes the three organizational components of the NSIIC framework:

Board of Directors (§§ 63.100–63.113): the Board has 7 voting members and 2 non-voting members, all appointed by the Secretary of Agriculture. Voting members are selected from nominations submitted by eligible national organizations — groups whose membership consists predominantly of active sheep or goat producers or processors. The Secretary must receive at least two nominees per open seat from each eligible nominating organization. Board members serve 3-year terms on a staggered schedule; initial appointees received 1-, 2-, or 3-year terms to establish the rotation. Members are not compensated but are reimbursed for travel, meals, lodging, and other necessary expenses incurred while performing board duties (§ 63.107). The Secretary may remove any member who fails to perform their duties, acts dishonestly, or engages in willful misconduct (§ 63.108). A quorum requires a majority of voting members present; most decisions require a majority vote of those present (§ 63.109).

NSIIC Establishment and Programs (§§ 63.200–63.204): the Center carries out its mission through grant-making, joint programs with other entities, and strategic partnerships. Eligible entities — any organization, public or private, working to improve the sheep or goat industry — may apply for NSIIC grants. The Board reviews all applications and supervises all grants and contracts, and the Center operates under a strategic plan the Board must maintain.

NSIIC Revolving Fund (§§ 63.300–63.301): the Fund is available to the NSIIC without fiscal year limitation — meaning unspent appropriations carry over rather than reverting to Treasury at year's end. The Fund must be used for grants to eligible entities under the strategic plan and for partnership activities; it may not be used for prohibited activities (§ 63.111), which include conflicts of interest and activities inconsistent with the Board's supervisory role.

Key Provisions

• § 63.100 — Board composition: 7 voting members, 2 non-voting; Secretary appoints from nominations submitted by eligible national sheep/goat organizations
• § 63.101 — Nominations: eligible organizations must submit ≥2 nominees per open seat; if an organization does not participate, the Secretary may seek additional nominations from other groups
• § 63.103 — Appointment authority: Secretary appoints all Board members from the nomination pool
• § 63.106 — 3-year staggered terms; initial appointees served 1–3 year terms to establish rotation
• § 63.107 — No compensation; reimbursement for reasonable travel and expenses
• § 63.108 — Secretary may remove members for cause (failure to perform duties, dishonesty, willful misconduct)
• § 63.109 — Quorum and voting: majority of voting members present; decisions by majority of those present
• § 63.110 — Board powers: supervise NSIIC and review all grants, contracts, and disbursements
• § 63.111 — Prohibited activities: conflicts of interest and self-dealing are prohibited
• § 63.112 — Conflict of interest: Board members may not vote on any matter in which they or close associates (spouse, child, partner, affiliated organizations) have a financial stake
• § 63.200 — NSIIC purpose: strengthen U.S. sheep and goat production and marketing through joint efforts
• § 63.300 — Revolving Fund in Treasury; no fiscal year limit
• § 63.301 — Fund use: grants to eligible entities under strategic plan; federal/state/private partnerships
• § 63.400 — Books and records: Board and NSIIC must maintain accurate records available for Secretary audit
• § 63.402 — Confidentiality: information from required records must be kept private; disclosure only where necessary to enforce the Act
• § 63.500 — Compliance: Secretary monitors Board and NSIIC for compliance with the Act and Part 63
• § 63.501 — Intellectual property: patents, copyrights, trademarks, and information created with NSIIC funds belong to the U.S. Government

How It Affects You

If you raise sheep or goats: NSIIC grants can fund initiatives that improve market access, processing infrastructure, producer education, and wool/meat marketing for the sheep and goat sectors. If your state or a national organization you belong to is pursuing an industry improvement project, NSIIC grants may be a funding avenue worth exploring — contact USDA AMS or your national sheep/goat producer organization to ask whether active NSIIC funding rounds are open and what types of projects are currently prioritized in the strategic plan.

If you work in sheep or goat processing or marketing: Eligible entities include not just producer organizations but any organization — public, private, or cooperative — working to improve the U.S. sheep or goat industry. Marketing associations, regional cooperatives, and state livestock councils may be able to apply for NSIIC grants.

If you're a national sheep or goat organization: Eligible nominating organizations must be approved by the Secretary and must have membership consisting predominantly of active sheep or goat producers or processors. If your organization qualifies, you have the right to submit nominations for Board seats. Contact USDA AMS (Agricultural Marketing Service) to ask about becoming a recognized nominating organization.

Statutory Authority

This rule implements:

• 7 U.S.C. § 1621 — Agricultural Marketing Act of 1946: congressional policy to develop and improve markets for agricultural commodities
• 7 U.S.C. § 1622 — Secretary of Agriculture's authority to conduct agricultural marketing research and services
• 7 U.S.C. § 1623 — Authority to make agreements with public and private organizations for marketing research and development
• 7 U.S.C. § 1626 — Authority to coordinate with other agencies and organizations

Recent Rulemakings

79 FR 31845 (June 3, 2014) — updated Part 63 to align the NSIIC regulations with current USDA organizational structure and terminology. No other major amendments since the program's establishment.

Recent Developments

• NSIIC funding status: The National Sheep Industry Improvement Center's funding has been modest and subject to annual appropriations uncertainty. The sheep industry's political footprint is small relative to beef and pork, making NSIIC one of the smaller USDA commodity improvement programs. Its continued operation depends on sustained Congressional interest in supporting the domestic wool and lamb sector.
• Domestic sheep and wool market dynamics: U.S. sheep production has declined sharply since the mid-20th century — the national sheep flock has fallen from over 50 million head in the 1940s to under 5 million today. Imported lamb (primarily from Australia and New Zealand) and imported wool dominate domestic markets. NSIIC's programs focus on improving domestic competitiveness through better genetics, predator control assistance, and market development — but structural economics of imported lamb and synthetic fiber competition remain the primary challenge.
• Predator losses and federal programs: Sheep producers face significant losses from coyote, mountain lion, and bear predation — a challenge addressed through USDA Wildlife Services' livestock protection programs (separate from NSIIC). NSIIC has supported guardian animal programs (livestock guard dogs and llamas) and range management practices that reduce predator access. The interaction between predator management policy and NSIIC's mission reflects the broader tension in federal agricultural policy between livestock protection and wildlife management goals.
• Farm Bill reauthorization and specialty crop programs: NSIIC authorization runs through the Farm Bill's rural development and specialty crop provisions. Farm Bill 2025 reauthorization includes discussions of consolidating or restructuring small commodity improvement programs. NSIIC's continuation depends on wool and sheep industry advocacy maintaining program authorization in the Farm Bill negotiations.

Pending Action

Farm Bill 2025 reauthorization is the primary pending action for NSIIC. The sheep and wool industry's advocacy organizations — American Sheep Industry Association and others — have engaged the House and Senate Agriculture Committees on maintaining NSIIC authorization and funding levels. Proposals to consolidate NSIIC with other small commodity improvement programs under a broader specialty crop or livestock development umbrella have been discussed but not advanced. Wool growers seeking NSIIC technical assistance or grant support should monitor NSIIC's program announcements through USDA's Rural Development website, as program funding availability fluctuates year-to-year with appropriations.