Ohio Senate passes bill to eliminate cap on individual loans issued to farmers –

The Ohio Senate passed a bill its sponsors say will provide help to farmers facing rising costs due to inflation.

Sponsors Sens. Jerry Cirino, R-Kirtland, and Michael Rulli, R-Salem, said the bill eliminates the cap on individual loans issued to farmers under the Agricultural Linked Deposit program, or Ag-LINK for short.

That program helps farmers and agribusiness finance upfront operating costs for feed, seed, fertilizer, fuel, and other expenses by providing interest rate reductions on new or existing loans at eligible financial institutions. Currently, farm operators and agribusinesses can receive up to a 3% interest rate reduction on new or existing operating loans up to $150,000.

“In a time where farmers are facing escalating costs to run their business and borrowing has become harder, this bill would bring much-needed relief for our agriculture industry,” said Cirino.

Rulli said that while working on this bill he heard from farmers about the rising costs of agricultural resources.

“For example, one ton of nitrogen fertilizer sold for $160 per ton last year now costs $530 per ton,” he said. “Herbicides have doubled in price.”

The bill, SB 241, also adds agriculture co-ops as eligible Ag-LINK borrowers.

Additionally, the bill expands the types of obligations in which the state treasurer may invest interim funds. Cirino and Rulli said the chance will lead to lower borrowing costs for Ohio hospitals and enhanced credit for the states public universities that choose to utilize such a partnership.

“These cost-savings will help numerous institutions focus their financial resources on their principal missions to serve customers, patients, and students,” Cirino said.

The bill now heads to the Ohio House of Representatives for further consideration.