By MEGGIE I. FOSTER

Assistant Editor

INDIANAPOLIS, Ind. — Indiana State Treasurer Richard Mourdock offered Hoosier livestock farmers an early valentine in the form of a reduced interest rate on the Treasurer’s Agricultural Loan Program (TALP).


On Feb. 7, Mourdock cut the interest rate on TALP to 3.5 percent, as means of providing additional financial assistance to Indiana livestock farmers. The TALP program was re-established in November of 2007 by Mourdock, alongside Indiana State Department of Agriculture Director Andy Miller, for the purpose of providing low interest loans to Hoosier livestock producers that raise beef cattle, dairy cattle, sheep, and goats.


The loan program, originally provided $25 million in available funds at a 5 percent interest rate to qualified applicants.


Since its inception in November 2007, 1.2 million dollars have been loaned out, leaving “ample supplies of funds left for farmers needing assistance,” according to Christopher Conner, director of communications and special projects for the state treasurer.
“Given the drastic slowdown in the economy, I deemed it necessary to cut the interest rate on TALP loans to 3.5 percent,” explained Mourdock. “I am pleased to do my part in providing additional financial assistance to Hoosier livestock farmers.”


According to the ISDA, hay yields in 2007 were down 35 percent from 2006, due in part to a late frost in the spring and a deadly drought in the summer. Consequently, the cost of hay is nearly twice as much, and the additional cost was an expense many livestock farmers didn’t anticipate.


In response to that financial stress, Hoosier livestock farmers had to make difficult financial decisions regarding their farming operations, which are still being realized in 2008, according to Mourdock.


How it works

TALP is a low interest loan program in partnership with local banks and credit unions. The Treasurer of State’s Office purchases a certificate of deposit from a local lender at a reduced rate, and in turn the local lender provides a loan to the farmer at a reduced rate.


The State Treasurer can adjust the interest rate on TALP loans on a quarterly basis, and the certificates of deposit are funded on the 1st and 15th of each month.


“I have the unilateral discretion to reduce interest rates on TALP loans when circumstances warrant it,” stated Mourdock.


“Because of the current condition of the economy, I felt it necessary to reduce rates now and not wait until the second quarter to do so.”


Mourdock encourages producers who qualify to take full advantage of this reduced rate available for one year or until the $25 million is dispersed.

In order to qualify, livestock farmers have to meet the following eligibility requirements: request a maximum loan of $100,000; residence, operation and livestock must be located in Indiana; livestock must be produced for commercial use; gross annual sales are $250,000 or less; funds must be used for the purchase of chemicals, feed, fertilizer, labor, livestock, production-related energy or vet fees; no loans may be made to an officer of a financial institution; no borrower can have more than one TALP loan; all loans made in connection with TALP shall have a fixed rate and be for a term of 12 months.

For more information on TALP, visit the Treasurer of State’s website, www.in. gov/tos, or call 317-232-6386.