Many Ohio farmers struggle with the high cost of borrowing operating funds for their businesses each year. In 1985, the Ag-LINK linked deposit program was created to help offset the impact of those costs.
The Department of Economic Development within the Ohio Treasury administers Ag-LINK. This annual program provides an interest rate reduction on operating loans and lines of credit to Ohio's farming community. Every year before the planting season, many farmers finance their operating costs for feed, seed, fertilizer, and fuel. Much like the GrowNOW program for small businesses, the Ohio Treasury places deposits with Ohio banks at below market rates when the bank agrees to reduce the interest rate on a farmer's loan. By law, $125 million is allocated for Ag-LINK annually.
How does Ag-LINK work?
The program allows Ohio farmers to apply for reduced-interest loans of up to $100,000. If an eligible farmer’s application is accepted, the Treasurer purchases a certificate of deposit at a reduced rate from a lender for one year. In turn, that lender lowers the interest rate of the loan given to the farmer.
Goal
Ag-LINK has been increasing opportunities for Ohio farmers to operate and thrive for more than 20 years. As a result, the Ohio Treasury has helped more than 28,000 farmers receive reduced rate financing on some $2 billion.
How does Ag-LINK help?
Agriculture is a key part of our state’s economy. By making it possible for Ohio farmers to run healthy businesses, the Ohio Treasury keeps one of Ohio’s most important sources of revenue healthy too.
> Download the Ag-LINK brochure
> Eligibility requirements
> List of depository banks
> Farm Credit System
> Apply as a farmer (Form I-AG)
> Apply as a bank (Form II-AG)
> 2010 agriculture linked deposit schedule
> High-low interest calculator