In order for wool to be certified as "organic," it must be produced in accordance with federal standards for organic livestock production. Federal requirements for organic livestock production include:

1. Livestock feed and forage used from the last third of gestation must be certified organic;
2. Use of synthetic hormones and genetic engineering is prohibited;
3. Use of synthetic pesticides (internal, external, and on pastures) is prohibited, and
4. Producers must encourage livestock health through good cultural and management practices.

Organic livestock management is different from non-organic management in at least two major ways:

1. Sheep cannot be dipped in parasiticides (insecticides) to control external parasites such as ticks and lice, and
2. Organic livestock producers are required to ensure that they do not exceed the natural carrying capacity of the land on which their animals graze.

REFERENCES:
http://www.ota.com/organic/woolfactsheet.html