Every year before the planting season, many Ohio farm operators and other agriculture businesses seek to finance their operating costs for feed, seed, fertilizer and fuel. This program can help offset the impact of these up-front costs by providing an interest rate reduction on agriculture business operation loans at eligible banks and farm credit lenders in partnership with the Ohio Treasurer of State Ag-LINK program.
How does Ag-LINK work?
Through Ag-LINK, Ohio farm operators and other agriculture businesses can apply for an interest rate reduction on new or existing loan or line of credit up to $150,000. Applications are accepted on an annual basis from January through March (see sample application
for information gathering, actual application must be done online with a participating financial institution
Lenders must complete and submit applications online on behalf of their borrowers and use the Banker Login
for Ag-LINK Portal). When an eligible participant’s application is accepted, the Ohio Treasurer’s office places an investment with the financial institution for one year. In turn, the lender lowers the interest rate on the farmer’s loan according to the rate reduction established annually by the Treasurer’s office.Goal
Agriculture is one of Ohio’s most important industries. It employs one-in-seven Ohioans and pumps over $90 billion into our economy each year. It is important that Ohio farm operators and agriculture businesses receive the help they need to offset the risks of rising fuel costs, unpredictable weather, and variable market prices.How does Ag-Link help?
For over 30 years, Ag-LINK has been increasing opportunities for Ohio’s farmers to operate and thrive by offering a reduced interest rate on operating loans and credit lines. Since the beginning of Ag-LINK, more than 40,000 farmers have received over $2.8 billion in reduced-rate financing.What is the process?
- Business seeks approval for a loan or line of credit from a participating bank or farm credit lender
- After the lender and borrower agree on the loan terms, the lender submits an online application to the Ohio Treasurer’s office
- Ohio Treasurer’s Economic Development Officers evaluate the applications and approve funds based on economic need
- Treasury negotiates the Ag-LINK interest rate reduction with the participating financial institutions
- Lenders accept the funding terms for each application and lower the interest rate for one year
- Interest reductions can be received as early as mid-April as communicated in each year’s Ag-LINK Schedule
NOTE: Participants may apply for the Ag-LINK program annually.Interest Calculation Worksheet
The 2015 Ag-LINK calculator is now available. This Excel Work Sheet
is used by banks to calculate the amount of interest due to the Ohio Treasurer on the line of credit loans at maturity and when requesting early redemptions.