UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                  SCHEDULE 14A
                                 (RULE 14A-101)

           PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE SECURITIES
                     EXCHANGE ACT OF 1934 (AMENDMENT NO. __)

Filed by the registrant [X]

Filed by a party other than the registrant [ ]

Check the appropriate box:

[ ] Preliminary proxy statement.
[ ] Confidential, for the use of the
     Commission only (as permitted by Rule 14a-6(e)(2).
[ ] Definitive proxy statement.
[ ] Definitive additional materials.
[X] Soliciting material pursuant to Section 240.14a-12

                        FARMERS & MERCHANTS BANCORP, INC.
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                (Name of Registrant as Specified in Its Charter)



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     (Name of Person(s) Filing Proxy Statement if Other Than the Registrant)

Payment of filing fee (check the appropriate box):

[X] No fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.

    1) Title of each class of securities to which transaction applies:

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    2) Aggregate number of securities to which transaction applies:


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    3) Per unit price or other underlying value of transaction computed
       pursuant to Exchange Act Rule 0-11 (set forth the amount on which
       the filing fee is calculated and state how it was determined):

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    4) Proposed maximum aggregate value of transaction:


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    5) Total fee paid:


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[ ] Fee paid previously with preliminary materials.


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[ ] Check box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number, or
the form or schedule and the date of its filing.

    1) Amount previously paid.


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    2) Form, Schedule or Registration Statement No.:


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    3) Filing Party:


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    4) Date Filed:


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FARMERS & MERCHANTS BANCORP, INC.


July 14, 2005

Dear Shareholder:

On June 17, 2005, the Board of Directors declared a $.45 per share dividend to
be paid on July 20, 2005 to shareholders of record date June 17, 2005. Enclosed
is your check or receipt of the dividend payment.

As management and directors, it is our responsibility to maintain adequate lines
of communication with you, our shareholder. We would like to use this
opportunity each quarter to present our thoughts concerning upcoming proxy
items. We realize that some of the confusion surrounding this year's proxy may
have been lessened had we communicated more effectively the reasoning behind the
proposals.

One of the most important proposals for next year is increasing the number of
the authorized shares. Our stock has been trading over $100 per share since the
second quarter of 1999. To improve liquidity and accessibility, which should
enhance the attractiveness and value of the stock, we would like to lower that
cost per share down to the $20 - $30 range with a stock split. This was last
done in 1996 with a stock split facilitated by an increase in the authorized
shares. We currently have 1.5 million shares authorized, with 1.3 million
outstanding. A stock split is not feasible until the number of shares authorized
is increased. A 4-for-1 or 5-for-1 split would be required to bring the stock
price down to the target range.

Although other proxy proposals, some similar to last year, will also be on the
proxy in the spring, it is premature to know what the proposals will be. The
intent is to provide your bank the flexibility needed to remain a growing
independent community bank.

The authorization of stock and possibly some of the other issues would require
an affirmative vote of two-thirds of all outstanding shares. This is a large
number, and we cannot stress enough how important it will be for each share to
be voted in person or proxy at the Company's annual meeting next spring.*

As always, you are encouraged to speak to any director or person from senior
management with any questions or concerns. We value all input and thank you for
your continued support.

Sincerely,

/s/ Paul S. Siebenmorgen
Paul S. Siebenmorgen
President & CEO


*THE COMPANY WILL FILE A PROXY STATEMENT AND OTHER RELEVANT DOCUMENTS (ALONG
WITH ANY AMENDMENTS THERETO) WITH THE SECURITIES AND EXCHANGE COMMISSION (THE
"SEC") CONCERNING THE PROPOSALS WHICH WILL BE BROUGHT AT THE MEETING. THE
COMPANY WILL MAIL THESE MATERIALS TO SHAREHOLDERS WHEN AVAILABLE, AND
SHAREHOLDERS ARE URGED TO READ THEM BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION. YOU WILL BE ABLE TO OBTAIN A FREE COPY OF THE PROXY STATEMENT, AS
WELL AS OTHER FILINGS CONTAINING INFORMATION ABOUT THE COMPANY, AT THE SEC'S
INTERNET SITE (HTTP://WWW.SEC.GOV). COPIES OF THE PROXY STATEMENT CAN ALSO BE
OBTAINED BY SHAREHOLDERS, WHEN AVAILABLE, AND WITHOUT CHARGE, BY DIRECTING A
REQUEST TO FARMERS & MERCHANTS BANCORP, INC., 307 N. DEFIANCE ST., P.O. BOX 216,
ARCHBOLD, OH 43502-0216, ATTN: LYDIA HUBER, CORPORATE SECRETARY, 419-446-2501.