Cattle operating loan rates in Indiana

Indiana's cattle operating credit market is anchored by Farm Credit Mid-America, the member-owned cooperative that serves all 92 Indiana counties from regional offices in Lafayette, Columbus, and Fort Wayne. Community banks such as First Farmers Bank & Trust, Centier, and Horizon Bank compete for mid-size cow-calf accounts, while USDA Farm Service Agency fills gaps for beginning and underserved producers with direct and guaranteed operating loans priced off the monthly Treasury-based schedule (5.375% as of the March 2026 FSA posting).

Collateral expectations on an Indiana cattle operating line are conservative: lenders file a UCC-1 on the live herd, stored feed, and growing forage, and typically hold loan-to-value at 65% to 75% on livestock and up to 80% when pasture or tillable ground is cross-collateralized. Purdue's Q4 2025 Indiana Farm Credit Conditions survey noted tightening underwriting as lenders responded to compressed margins in the cow-calf segment, with most reporting unchanged or stricter collateral requirements versus the prior year.

Seasonal cash-flow timing drives how these lines are structured. Most Indiana operators draw in late winter and spring to cover pasture rent, hay, mineral, veterinary, and breeding costs, then pay down the line in the fall as feeder calves move through Indiana and Kentucky auction barns. Farm Credit Mid-America and most community banks structure the revolving line on a 12-month renewal cycle keyed to weaning, with interest billed quarterly and principal cleanup required once per year — a structure that lets ranchers match borrowing to the calf-crop marketing window rather than carrying idle balances.