Illinois farmers can secure below-market agricultural operating loans through the state’s Ag Invest program, which partners with local financial institutions to reduce interest rates and cover essential farm expenses. The program offers maximum deposits of up to $600,000 for one- or two-year terms to support local agricultural operations.
Agricultural loans cover farm operating costs
Agricultural operating loans cover a wide range of annual farm operating and start-up costs. Eligible items include seed, feed, fertilizer, plants, salaries, transportation, milling, processing, transition expenses, and crop insurance. Borrowers can also use the funds for land acquisition up to $600,000, cash rent, livestock and breeding stock purchases, production-related energy and labor expenses, veterinarian costs, new or used farm equipment, construction, and soil and water conservation projects.
Participating financial institutions may request a deposit of up to $600,000 per borrower. Terms are strictly set for either a one-year or a two-year period, and each borrower is limited to one active operating line of credit at any given time. The reduced interest rate remains fixed for the duration of the deposit term.
Illinois State Treasurer expands Ag Invest program
The Illinois State Treasurer’s Office administers Ag Invest as the nation’s most expansive agriculture deposit program. Since its inception in 1983, the program has loaned more than $6 billion in operating and long-term financing. The office expanded its offerings in 2000 by introducing the Long-Term Loan Program to help agricultural professionals grow their operations.
To streamline access, the Treasurer’s Office launched a fast-track version of the program in 2012. This update shortened the approval process for eligible financial institutions from 10 business days down to 24 to 48 hours, allowing lenders to serve clients more efficiently.
Interest Rates and Application Requirements
Interest rates are published in the Access to Capital and Invest in Illinois Daily Rates sections on the Treasurer’s website and update on the first day of each month. Potential borrowers can also contact the Treasurer’s Office directly at 217-558-6217 to verify current figures. The final deposit rate is confirmed on the business day before a loan is issued.
For the period spanning January 1, 2026, through December 31, 2026, lenders may charge up to 2.75 percentage points above the Treasurer’s deposit rate. To qualify, an applicant’s property must be located entirely within Illinois, and a participating state financial institution must approve the application.
Frequently Asked Questions About Ag Invest
What is the maximum deposit amount available for a borrower?
Participating financial institutions may request a deposit of up to $600,000 per borrower for either a one-year or a two-year term.
How quickly can a lender get an application approved through the fast-track process?
Introduced in 2012, the fast-track approval process reduces the review time for eligible financial institutions from 10 business days down to 24 to 48 hours.
Who can borrowers contact for updated daily interest rates?
Borrowers can check the Access to Capital and Invest in Illinois Daily Rates sections on the Treasurer’s website or call the Treasurer’s Office at 217-558-6217.
What is the maximum markup lenders can charge for 2026?
From January 1, 2026, through December 31, 2026, participating lenders may charge up to 2.75 percentage points above the Treasurer’s deposit rate.
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