The term CUT, AS SHEEP'S WOOL can be solved by the word SHEAR, which is a five-letter word. Shearing is the process of cutting the wool off of sheep in order to harvest it. This process is usually done with a pair of shears, which are large scissors specifically designed for this purpose. Shearing is an important part of the wool industry, as it allows farmers to collect the wool from their sheep and use it for various purposes.