COLUMBUS – More than 1,600 Ohio farmers received $125 million in agriculture linked-deposit (Agri-Link) loan funds through the state treasurer’s office.
The program, now celebrating its 20th year, provides farmers with the financial assistance needed to help offset start-up costs and expenses at the beginning of the operating season.
Eligible operating expenses include seed, animal feed, fertilizer and fuel.
During the 2005 season, the program will assist 1,664 Ohio farmers, according to Ohio Treasurer Jennette B. Bradley.
Reduced-rate loans. Approved applicants will receive reduced-rate loans totaling $125 million through a partnership between state depository banks and the Ohio Treasury.
Approved Agri-Link loans reduce the rate of interest participants pay by 263 basis points (2.63 percent), with loan amounts not exceeding $100,000.
The treasurer’s office then deposits $125 million to secure reduced-rate certificates of deposit at eligible lending institutions.
The state treasury’s acceptance of earning a reduced rate of return on this investment, allows participating financial institutions to pass along the interest savings to the Ohio farmers.
Application. To participate in Agri-Link Deposit Program, farmers must apply for an operating loan at an eligible lending institution or branch of the Farm Credit System.
Working with a local lender, applications are submitted to the state treasurer for review.
Approval is based on a certain criteria, including financial data and farm-specific circumstances.
Get the details
Although the 2005 application process is completed, Ohio farmers interested in obtaining more information about the 2006 program can contact: