Phaseout of a faderal incentive program for mohair growers will force the industry into major readjustment. The incentive program, which is mandated by the 1954 National Wool Act, paid $58.2 million to producers in the spring of 1993. In 1994, payments will drop to 75 percent of 1993 level, to 50 percent in 1995, and to zero in 1996. Mohair producers claim that they can live with the phaseout. Production is expected to decline for a few years, but it will rebound eventually. Although mohair is produced in 33 states, 86 percent of the total production comes from 4,000 ranchers in the Edwards Plateau region of southeastern Texas. About 90 percent of United States mohair is exported, mostly to the United Kingdom, India, China, and Italy. Worldwide production has decreased from 57 million pounds in 1988 to 36 million pounds in 1992. Production is forecast to plummet to 26 million pounds in 1995.