Ohio Treasurer To Open 2008 Application Process for Ohio Farmers to Receive Reduced Rate Loans

Ohio Treasurer Richard Cordray announced that the application process for the 2008 Agricultural Linked Deposit program opened January 7 and will close on March 14 at 5 p.m.

The program allows Ohio farmers to receive loans at reduced interest rates through their local banks or farm credit agencies in order to offset the high cost of borrowing operating funds. It is one of the few ways that the state makes aid directly available to farmers, who can save up to $4,000 a year with the interest-rate reduction.

The Ag-Link program allocates $125 million of the Ohio Treasury’s portfolio for the purchase of reduced-rate certificates of deposit from banks. The lenders then pass along the interest rate reduction—up to four percent for a one-year period—to farmers who have been approved for loans.

Agriculture is the leading industry in Ohio, employing 14 percent of the state’s workforce. In 2007, 1,837 farmers received reduced-rate loans.

“Farmers in Ohio pump more than $73 billion into the economy each year. More than 200 different crops are grown here,” said Treasurer Cordray. “The Agricultural Linked Deposit Program is a way to support the tradition of family farms in our state and to encourage their economic expansion. We are pleased to offer this program as part of our effort to invest the state’s money in ways that are safe, secure, and will provide the most benefit to Ohioans.”

In order to qualify for an Agricultural Linked Deposit, farms must be for-profit with their headquarters and more than half of their operations maintained in Ohio . Additionally, the farm must have a documented need for the reduced interest rate and may request the reduction for up to the first $100,000 of a loan.

To apply the farm must apply and be approved for an operating loan or line of credit from its Farm Credit System lender or a participating bank. After approval, the farm may apply for an interest-rate reduction from the Ohio Treasury. The Treasury does not restrict how the farmer spends the loan funds, but priority for the rate reduction will be given to farmers using the funds for feed, seed, fertilizer and fuel.

Applications must be received in the Ohio Treasurer’s offices no later than 5 p.m., Friday, March 14, 2008. Postmarks and faxes marked March 14 but that arrive after the deadline are not acceptable because of the high demand for the program.

Written notification of the status of each application will be mailed no later than April 7, 2008. The Treasurer will announce the amount of money invested in each county in early April. Funding will be available as early as April 9, 2008 to assist with spring planting.

Applications and a list of participating lenders are available on the Ohio Treasury Web site at www.ohiotreasurer.gov.

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