Mohair from Angora goats has been produced in the United States since the introduction of these animals from Turkey in 1849. Cashmere on Texas meat goats was reported in 1973, but domestic interest in commercial production did not occur until the mid-1980s. Since 1982, the average prices of U.S.-produced mohair and cashmere (de-haired) have ranged from $1.81 to $9.48/kg and approximately $55 to $200/kg, respectively. However, return to producers from mohair has been relatively constant, averaging $10.21/kg, due to the federal incentive program. Because this program is scheduled to terminate with final payment in 1996, the future of mohair profitability is questionable. Prospects for expanded mohair and cashmere production and processing in the United States are influenced by numerous interacting factors and potential constraints. These include the prospect that the goat and textile industries may no longer be profitable in the absence of clear government policies. Although selection may have slightly increased fiber production by Angoras (long term) and domestic meat goats (short term), availability of genetic resources may prove to be a constraint to increased fiber production by cashmere goats and improved meat production by both types of goat. Land resources are plentiful unless new government policies prohibit goats from vast tracts of rangeland and forest because of environmental concerns. Future demand is an unknown, but with increasing world population and affluence, prospects for long-term improved demand for luxury fibers seem good. Competition from foreign cashmere growers is expected, whereas, in the short term, mohair production overseas is declining. However, increased processing of cashmere in its country of origin is expected to result in shortages of raw materials for European and U.S. processors. The amount of scouring, worsted, and woolen equipment in the United States is adequate to accommodate major increases in domestic processing of goat fibers. However, the absence of specific processing knowledge and skills may be constraints. Similarly, the absence of acceptable small-scale dehairing equipment for cashmere will limit cashmere processing on a cottage industry scale. Purely practical considerations such as the effects of predation and cost of fencing could become major constraints to expanding the goat fiber industry. Likewise the success (or lack thereof) of industry promotion of fiber and goat meat could be an overriding factor. To emerge from the uncertainty of erratic raw material prices and to better control profitability, domestic goat-fiber producers are encouraged to consider innovative, cooperative, retained ownership business ventures that will permit them to profit-share up to the retail level.