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. Ag-LINK can help offset the impact of these up-front costs by providing an interest rate reduction on agriculture business operation loans at eligible financial institutions (includes farm credit lenders).
Agriculture is one of Ohio’s most important industries. It employs one-in-eight Ohioans and pumps over $124 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 variable operating costs, unpredictable weather, and shifts in market prices.
How does Ag-LINK work?
Through Ag-LINK, Ohio farm operators and other agriculture businesses can apply for an interest rate reduction on a new or existing loan or line of credit up to $150,000. Applications are accepted each year between January and March (view the 2020 Schedule). Print an application for information gathering purposes only. The actual application must be completed online through a participating financial institution.
Lenders must complete and submit applications on behalf of their borrowers and use the Lender Login to access the online application (if new to Ag-LINK please reference the Online Portal Lender Guide for the 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.
What is the process?
- Business seeks approval for a loan or line of credit from a participating financial institution 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.
- Economic Development Officers at the Ohio Treasurer’s office evaluate the applications and approve funds based on economic need.
- The Ohio Treasurer’s office negotiates the Ag-LINK interest rate reduction with the participating financial institutions.
- Lenders accept funding terms for each application and lower the loan interest rate for one year.
- Borrowers can receive interest rate reductions as early as mid-April of each year. The exact dates appear in the Ag-LINK Schedule
How do I find a participating financial institution?
Current participants may apply for the Ag-LINK program annually with their ag-lender. However, if you require assistance locating a participating financial institution near you, please contact our Economic Development department at (614) 466-6546, (800) 228-1102, or email email@example.com. Please provide your full contact information and county of residence if leaving a voice message or emailing our office.
Interest Calculation Worksheet
- If the Ag-LINK application(s) were funded between 4/17/2019 and 6/25/2019 with a maturity date of 4/15/2020, and has a discount rate of 1% to the borrower, use the traditional 2020 Ag-LINK interest calculator.
- If the Ag-LINK application(s) were funded between 7/9/2019 and 11/25/2019 with maturity date of 4/15/2020, and has a discount rate of 2% to the borrower, use the 2020 Extreme Weather Ag-LINK interest calculator A.
- If the Ag-LINK application(s) were funded between 7/9/2019 and 11/25/2019 with maturity date after 4/15/2020, and a discount rate of 2% to the borrower, use the 2020 Extreme Weather Ag-LINK interest calculator B. This calculator is used when the maturity date is one full year after the date the application was funded.
These calculators are used by participating financial institutions to calculate the amount of interest payable to the Ohio Treasurer at maturity, and for early redemptions in each category.
The 2021 interest calculator will be available prior to the end of June 2020.