Ag Invest Frequently Asked Questions
Find answers to common questions about Ag Invest loan limits, repayment terms, lender participation, and interest rate requirements. The Ag Invest program offers affordable financing to Illinois farmers and agriculture professionals have two options: Ag Invest Agriculture Operating Lines of Credit and Long-Term Ag & Value Added Ag.
How does the program work?
For each approved project, the treasurer’s office deposits funds at a reduced rate into an eligible financial institution, thereby lowering the interest rate. This enables borrowers to secure below-market rates for either one year or up to nine years of the loan.
What is the Ag Invest Agriculture Operating Line of Credit program?
Ag Invest Agriculture Operating Line of Credit is either a 1-year or 2-year program that assists farmers with expenses for seed, fertilizer, salaries, fees, inventory, transportation, processing, milling, transitioning, crop insurance, and other costs.
Does Ag Invest guarantee the loan?
No. Ag Invest does not guarantee the loan. Your lender still reviews and approves the loan application.
How much can I borrow?
That depends on the loan type:
- Agriculture Operating Line of Credit: up to $600,000
- Long-Term Ag / Value Added Ag: up to $800,000 per borrower per calendar year
- Projects over $800,000: reviewed individually
When do I have to pay back the loan?
The initial rate is guaranteed for 3-years. If a compliance check is successfully passed at the end of 3 years, the loan may be extended for another 2 years. Other loan terms are available for expenses greater than $800,000. Value Added projects can be extended to 3+3+3 for a total of 9-years. The maximum interest rate on the loan may not exceed the associated deposit rate by more than 2.75 percent during the term of the treasurer’s participation. Current deposit rates are available at illinoistreasurer.gov.
How long do I have to repay the loan?
- Operating Line of Credit: 1 year or 2 years
- Long-Term Ag: 3 years, with a possible 2-year extension
- Value Added Ag: may be extended up to 9 years total
What is the interest rate limit?
During the Treasurer’s participation in the loan, the interest rate may not exceed the related deposit rate by more than 2.75 percent. Current deposit rates are available at illinoistreasurer.gov.
Which lenders can participate?
More than 400 financial institutions are eligible to participate in the Treasurer’s Invest in Illinois programs.
What if my lender is not familiar with Ag Invest?
If your lender does not participate or has questions about the program, contact the Treasurer’s Office for more information.