Application deadline quickly approaching, border counties risk missing out

( COLUMBUS )--Ohio Treasurer Richard Cordray today encouraged farmers to quickly complete their application for the 2008 Agricultural Linked Deposit Program. The program's deadline is March 14 at 5 p.m.

Cordray noted that, so far this year, the response from farms in the counties east of I-77 has been light. “Last year, not one of the 12 counties on Ohio 's eastern border produced applicants, leaving the bulk of $125 million to farms elsewhere in the state,” Cordray said. “I would like to see more participation from the eastern part of the state.”

The program, which allows Ohio farmers to receive loans at reduced interest rates through their local banks or credit agencies, was designed to address economic needs equally throughout the state. It is one of the few ways that the state makes aid directly available to farmers, who can save up to $3,000 a year with the interest-rate reduction.

“While the process is competitive, we look to distribute the funds equally based on need. I know there are farms along the eastern border that could and should benefit. I strongly urge them to apply,” stated Cordray.

The Agricultural Linked Deposit 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.

In order to qualify for an Agricultural Linked Deposit, farms must be for-profit, with 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 first be approved for an operating loan or line of credit from a Farm Credit System lender or participating bank. After that loan is approved, the farmer may apply to the Ohio Treasury for an interest rate reduction.

The Treasury gives priority to farmers using the funds for feed, seed, fertilizer and fuel, although there is no restriction on how the farmer spends the loan.

The deadline for applications is Friday, March 14, 2008 at 5:00 P.M. Applications submitted via U.S. Mail must be postmarked by March 14. Faxed applications are not accepted due to the high demand for the program.

Applicants will be notified of the status of their application in writing no later than April 7. Funding will be available as early as April 9 to assist with spring planting.

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