Wool and mohair have been declining industries. Sheep inventories are a fifth of their World War II level; goat numbers are a third of their mid-1960's level. High lamb prices and a strong demand for wool increased the net returns of farmers in the late 1980's. Government payments to wool producers in 1988 were the lowest since 1980 because of a record high wool price. Policymakers have had limited control over wool program costs given the formula-based Government support price, the trend of declining textile market share, rising raw wool textile imports, stagnant lamb and mutton consumption, and the dominance of Australia and New Zealand in the world wool market. Issues for 1990 include whether to continue the program and, if so, the level and method of determining support prices.