The most common and most likely answer to this crossword clue is the 4 letter word NAPA
N
A
P
A
More clues leading to the result NAPA
Buddy explains!
The straight part
We know that "sheepskin" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case sheepskin = napa.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does NAPA mean?
NAPA noun- Brassica rapa subsp. pekinensis, a kind of Chinese cabbage.